Default and Claims

At the end of May, servicers reported 713,104 FHA mortgages in serious delinquency (90+ days or in bankruptcy or
foreclosure) yielding a serious delinquency rate of 9.4 percent — the same as last month.

So far this fiscal year, FHA has paid 178,110 single family claims. This total is 21.4 percent lower than the year-to-date
count seen in FY 2011. The decline is confined to loss mitigation claims, which are down 47 percent (77,512 versus
145,479). Conveyance claims for FY 2012 are now greater than at this point in FY 2011 (67,557 vs. 61,474) as a result
of higher March – May activity, and following the National Mortgage Settlement. Pre-foreclosure sale claims have been
higher in each month of FY 2012 than they were in FY 2011, so that year-to-date activity is up 78 percent (23,977 vs.
13,502). In addition, there have been 7,719 HECM claims paid and 1,345 other claim actions in this fiscal year.

Full report below…