The Federal Housing Administration today disputed a report that foreclosure starts on loans it insures spiked by 74 percent from March to April.
New foreclosures on FHA-backed loans rose to 63,126 in April from 36,311 a month earlier, mortgage-data providerLender Processing Services Inc. (LPS) said yesterday in the report. FHA said its own numbers showed an 11 percent drop to 18,975.
LPS may have erred extrapolating numbers from its database of information on 40 million loans, FHA spokesman Lemar Wooleysaid in an e-mail. Mitch Cohen, a spokesman for LPS, didn’t immediately respond to a request for comment.
“The bottom line is that the numbers in the LPS report for April simply don’t accord with our data,” Wooley said.