IDEAS home Printed from https://ideas.repec.org/a/ucp/munifj/doi10.1086-mfj26020019.html
   My bibliography  Save this article

FHA Multifamily Defaults Soar: An Update on FHA Project Loan Defaults and Prepayments

Author

Listed:
  • Kurt van Kuller

Abstract

Section 221(d)(4) mortgage defaults soared to $381 million in 2004, only slightly under levels seen at the height of the savings and loan crisis. This spike in default rates indicates acute distress in the FHA multifamily portfolio, and default rates are vulnerable to further upward pressure in the near term. FHA multifamily loan production also fell in 2004 by the most in over a decade, and the most pronounced downturn in rental housing markets since the early 1990s has also negatively affected originations. Prepayments are also at record levels, and the general health of long-term care projects remains weak. In contrast to turbulence in other FHA programs, 542c HFA Risk Sharing is an oasis, with only one default in 2004. Begun in 1994, FHA Risk Sharing is a significant improvement over traditional forms of FHA insurance.

Suggested Citation

  • Kurt van Kuller, 2005. "FHA Multifamily Defaults Soar: An Update on FHA Project Loan Defaults and Prepayments," Municipal Finance Journal, University of Chicago Press, vol. 26(2), pages 19-36.
    • Handle: RePEc:ucp:munifj:doi:10.1086/mfj26020019
    DOI: 10.1086/MFJ26020019
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/MFJ26020019
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: http://dx.doi.org/10.1086/MFJ26020019
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: https://libkey.io/10.1086/MFJ26020019?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:munifj:doi:10.1086/mfj26020019. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/MFJ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.