Software provider Ellie Mae says that Federal Housing Administration (FHA) loans now account for 35% of all monthly applications going through its Encompass Mortgage Management System, up from 11% in July 2007. The spike in FHA loans reflects the fall of the subprime market, Ellie Mae says.
‘What's unique about these high volume numbers of FHA originations is that a lot of these originators weren't focused or experienced with FHA loans a year ago, and now they have adapted their business models and leveraged available technologies to address this growing segment," says Jonathan Corr, chief strategy officer for Ellie Mae.
"Despite the fact that FHA loans are completely different loans than what most originators are used to, and that they have completely different sets of guidelines, Encompass users have been able to quickly ramp up their FHA business and capitalize on those opportunities, because Encompass was specifically designed to help both brokers and bankers originate FHA loans," he adds.
SOURCE: Ellie Mae