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FHA New Foreclosures Jump as Modified Loans Default

By Patrick   Follow   Wed, 9 May 2012, 7:11pm   402 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 Follow Befriend (1) 13 threads 20 comments

   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 Follow Befriend (2) 4 threads 119 comments

   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.