Skip to comments.FHA Needs Bailout; Getting A Mortgage Gets Harder
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 FHAs $1.08 trillion mortgage guarantees are more than 90 days past due or in foreclosure.
The good news for the FHA is that it wont 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 wont need to ask Congress for fundsit can go directly to the Treasury.
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 ...
This just keeps on getting better and better.
Gee, I wonder if those underwriting rules should include some reasonable expectation of the lendee being able to re-pay the loan....
That’s not in the Democrat playbook.