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URL:  http://boards.fool.com/fha-may-show-negative-reserves-for-mortgage-loss-30383427.aspx

Subject:  FHA May Show Negative Reserves for Mortgage Loss Date:  11/15/2012  3:47 PM
Author:  MadCapitalist Number:  655330 of 744751

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.

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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."

http://finance.yahoo.com/news/fha-may-show-negative-reserves...

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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