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FHA Needs Bailout; Getting A Mortgage Gets Harder
Forbes ^ | 11/14/2012 | Halah Touryalai

Posted on 11/14/2012 11:40:50 PM PST by ExxonPatrolUs

The Federal Housing Administration is so loaded with delinquent mortgages that its reserves are running low, according to a report from The Wall Street Journal. The Journal, whose Nick Timiraos cites people familiar with the matter, notes that 9.6% of the FHA’s $1.08 trillion mortgage guarantees are more than 90 days past due or in foreclosure.

(Snip)

The good news for the FHA is that it won’t have to go to great lengths to get access to bailout funds. Enter the U.S. Treasury. Because the FHA operates on a so-called ‘permanent and indefinite’ budget it won’t need to ask Congress for funds–it can go directly to the Treasury.

(Snip)

That may be a relief in the short-term but it could also spark a major riff among lawmakers. They are likely to argue that mortgages backed by the FHA need to be subject to stricter underwriting rules than currently in place.

(Excerpt) Read more at forbes.com ...


TOPICS: Chit/Chat
KEYWORDS: bailout; fha

1 posted on 11/14/2012 11:40:58 PM PST by ExxonPatrolUs
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To: ExxonPatrolUs

Great.

This just keeps on getting better and better.


2 posted on 11/14/2012 11:48:55 PM PST by Tzimisce (Will there be anything to fight for in 2016?)
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To: ExxonPatrolUs
"mortgages backed by the FHA need to be subject to stricter underwriting rules than currently in place."

Gee, I wonder if those underwriting rules should include some reasonable expectation of the lendee being able to re-pay the loan....

3 posted on 11/15/2012 3:36:41 AM PST by Pecos (Double tap: the only acceptable gun control)
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To: ExxonPatrolUs

BUMP


4 posted on 11/15/2012 4:29:03 AM PST by kitkat
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To: Pecos

That’s not in the Democrat playbook.


5 posted on 11/15/2012 4:44:13 AM PST by Eric in the Ozarks (In the game of life, there are no betting limits)
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To: Pecos
"Gee, I wonder if those underwriting rules should include some reasonable expectation of the lendee being able to re-pay the loan...." Duhhhh!
6 posted on 11/15/2012 4:53:23 AM PST by harpu ( "...it's better to be hated for who you are than loved for someone you're not!")
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