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|Subject: FHA May Show Negative Reserves for Mortgage Loss||Date: 11/15/2012 3:47 PM|
|Author: MadCapitalist||Number: 655330 of 789453|
FHA May Show Negative Reserves for Mortgage Losses
"The Federal Housing Administration (FHA), in a report due out Friday, could disclose that its reserves for future mortgage-insurance claims dipped into negative territory for the first time in almost a quarter of a century.
The FHA has tried to avert financial disaster by raising mortgage insurance premiums this year, but that may not be enough. The FHA took on a huge segment of the mortgage market when credit crashed, up to 40 percent of new originations in 2010. FHA loans, by definition, are riskier because they only require a 3.5 percent down payment."
40 percent of new originations in 2010? That's nuts. I've been reviewing their work. Quite frankly, it stinks. It's almost as if they have no business training at all.
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