iEmergent announces release of 2009 FHA Market ForecastMortgagePress.comiEmergent, 2009 FHA Market Forecast, statistics, Dennis Hedlund, FHA default levels, Purchase Mortgage Conversion Rates
iEmergent, a Des Moines, Iowa-based market research, forecasting
and advisory services firm for the financial services, mortgage and
real estate industries, released its 2009-2013 FHA Purchase
forecasts to provide lenders with current information about the
size and scope of FHA lending opportunities in individual markets
nationwide, as well as how these opportunities will be changing
over the next five years.
Using iEmergent's FHA Purchase forecasts and simple analytical
tools, financial institutions can better quantify the FHA lending
opportunities in their desired markets throughout the United States
and identify where the size and potential growth of FHA lending
opportunities match their capabilities, as well as indicate where
their oversight needs to be more diligent.
iEmergent's 2009 FHA forecasts fully consider the impact--both
positive and potentially negative--of many significant changes to
the FHA lending programs that were implemented in 2008, as well as
changes that will occur in 2009 as a result of the serious
challenges facing the housing market and the general economy.
Currently, iEmergent is forecasting 1.4 million owner-occupied FHA
purchase loans in 2009, for a total purchase volume of $245.9
billion. With the inclusion of FHA refinance transactions,
iEmergent projects that total FHA funding could reach $400 billion
for 2009.
"The rapid expansion of FHA loan volumes in the United States
has been accompanied by an equally rapid shift in the distribution
of FHA lending across local mortgage markets," said Dennis Hedlund,
founder and president of iEmergent. "While greater access to the
FHA loan program is a positive for borrowers, especially first-time
home buyers, its quick expansion and rapidly changing distribution
patterns might be cause for alarm to some lenders. History has
shown that whenever any loan product's popularity grows by a
magnitude of five to eight times its normal trend in a short period
of time, prudent oversight efforts such as increased FHA training,
the close tracking of loan package submission and documentation
quality, and the constant evaluation of loan data integrity--is
necessary. An increase in early FHA default levels would
undoubtedly cause FHA to contract the program at a time when the
FHA product is critical to stabilizing struggling housing
markets."
iEmergents FHA Purchase Forecast is available for all geographic
markets and contains the Purchase Mortgage Conversion Rates
(PMCRs), sizes of total FHA purchase lending opportunities, FHA
mortgage density and projections of future FHA mortgage growth
speeds for each geographic market.
For more information, visit www.iemergent.com.
