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http://www.latimes.com/business/money/la-fi-mo-fha-federal-h...

WASHINGTON -- The Federal Housing Administration, which has played a crucial role in stabilizing the housing market, said it ended September with $16.3 billion in projected losses -- a possible prelude to a taxpayer bailout.

The FHA does not lend money, but guarantees loans made by banks in exchange for insurance premiums. The agency's role has expanded since the crash of the subprime mortgage market, and it now insures about $1.1 trillion in loans, according to Inside Mortgage Finance.

But the expanded role, including backing mortgages with as little as 3.5% down payment and for some people who have undergone recent foreclosures, has taken a toll on its finances. The agency boosted premiums and took other steps in 2009 to shore up its capital reserves.
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Nothing was learned.
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Quoted: But the expanded role, including backing mortgages with as little as 3.5% down payment and for some people who have undergone recent foreclosures,

There's no extenuating circumstance that would allow anyone with a "recent foreclosure" to obtain an FHA loan. The reporter is mistaken.
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OH GOODIE!

Low interest rates. Low down payments. Easy to buy homes.

Home values hopefully increase.

BUT IF THEY DON'T....AND THINGS GET TOUGH...............IT'S OK FOR INVESTORS TO DUMP THEIR BAD HOMES ON THE FEDERAL GOVERNMENT BECAUSE AFTER ALL, IT'S THE BIG BANK'S FAULT RIGHT?

Thanks taxpayers in advance, if it comes to that.

Obama 2012

JediG
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JediGALT wrote: OH GOODIE! Low interest rates. Low down payments. Easy to buy homes.

Actually, it's not easy to buy a home. Underwriting guidelines are more stringent than I've seen in 20+ years of originating loans. It takes longer, is more stressful and success uncertain. Many experienced loan originators have moved on to other careers because it's just not worth it anymore.

With further implementation of the Dodd-Frank Act--specifically, what constitutes a "qualified loan"--it's only going to get worse.
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Credit in general is loose.

Very loose.

It's gonna happen again
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JediGALT wrote: Credit in general is loose. Very loose.

It is? I work in credit every single day. Could've fooled me.
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Yes, it is. I'm not saying in every case but yeah, there's plenty of people getting loans where it's obvious they aren't gonna pay back.

And there's plenty of people who went repo or foreclosure who are out buying all sorts of nice stuff on credit today, with little consequence.

It's all good.

Let's ride the elevator up again, only this time...get off the elevator before it gets to the highest floor.

JediG
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JediGALT wrote: there's plenty of people getting loans where it's obvious they aren't gonna pay back.

How are they doing this?

And there's plenty of people who went repo or foreclosure who are out buying all sorts of nice stuff on credit today, with little consequence.

How is this possible?

Can you explain, because I'd like to be able to offer this credit to my customers.
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Please note that every industry is different. As is everyone's ability to obtain credit for their customers.

JediG
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JediGALT wrote: Please note that every industry is different. As is everyone's ability to obtain credit for their customers.

What industry is now offering easy credit?
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Autos.

Guaranteed.

JediG
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