For default mortgage servicers, loans insured by the Federal Housing Administration offer the best potential for portfolio growth during the next couple years, according to a recent survey.

Although the Department of Housing and Urban Development reports FHA-insured loans accounted for just 17 percent of last year’s originations, they make up 35 percent of all loans past due at least 30 days.

So as FHA endorsement volume increases, the potential for an increase in the amount of default assets will also expand.

Source: Mortgage Daily