FHA New Foreclosures Jump as Modified Loans Default


By Patrick   Follow   Wed, 9 May 2012, 7:11pm   489 views   2 comments
In Menlo Park CA 94025   Watch (0)   Share   Quote   Permalink   Like   Dislike  

http://www.bloomberg.com/news/2012-05-09/fha-new-foreclosures-jump-as-modified-loans-default-mortgages.html

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  1. San Diego Renter


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    1   12:00pm Fri 11 May 2012   Share   Quote   Permalink   Like   Dislike  

    This is infuriating. It was 100% foreseeable that issuing credit to bad credit risks with little-to-no-skin-in-the-game in a downdrafted market would result in losses. It is going to be you and I paying for those losses. This goes beyond bad risk management - it's policy based on a terrible incentive structure.

  2. drtor


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    2   4:37pm Sat 12 May 2012   Share   Quote   Permalink   Like   Dislike  

    San Diego Renter says

    This is infuriating.

    Yes, although IMO helpful to get us towards normal lending standards. Our political overlords (yes, even Barney Frank) have recently shown that they are willing to tighten FHA standards and increase FHA fees, if the alternative is another bailout.

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