According to 2015 data recently released under the Home Mortgage Disclosure Act, the FHA-insured share of all 1-4 family mortgage originations in owner-occupied homes increased in 2015, moving up to 15% from 19% in 2014. At the same time, the conventional mortgage share fell from 73% to 70%, while the share of FSA and RHS mortgages dropped to 2% from 3%.
While most loan types recorded an increase in refinancing originations, the change in the proportion of FHA-insured refinancing loans was the greatest. 33% of FHA loans originated in 2015 were refinancing loans, up from 22% in 2014, while 14% of refinancing loans made in 2015 were FHA loans, up from 9% in 2014.
Part of the share increase in FHA-insured refinancings relative to other FHA-insured mortgages may be consistent with the expansion observed in both conventional and VA- guaranteed mortgages, which both recorded refinancing share increases in line with the overall increase. At the same time, the greater than average switch from home purchase originations to refinancing originations within the FHA-insured originations category may also reflect the lowering of the annual MIP as borrowers may have refinanced their home with an FHA-insured mortgage in order to take advantage of the lower insurance premium.