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To prevent an FHA bailout, lower the conforming limit on GSE loans

By golfplan18   Follow   Tue, 31 Jul 2012, 7:41am   522 views   4 comments
In Irvine CA 92620   Watch (0)   Share   Quote   Permalink   Like   Dislike  

http://ochousingnews.com/news/to-prevent-an-fha-bailout-lower-the-conforming-limit-on-gse-loans

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1. golfplan18 Follow Befriend (2) 519 threads 114 comments Irvine, CA

   1   7:43am Tue 31 Jul 2012   Share   Quote   Permalink   Like (1)   Dislike

2. Oil Can Follow Befriend 21 threads 128 comments Oil Can's website

   2   7:50am Tue 31 Jul 2012   Share   Quote   Permalink   Like   Dislike   I don't think we will ever go 20% down again.

3. errc Follow Befriend (7) 30 threads 1,215 comments 31 male Premium

   3   8:06am Tue 31 Jul 2012   Share   Quote   Permalink   Like   Dislike   Protected   Fha is self funding Why would they need a bailout? They have already jacked up their fees bigtime, devouring the savings would be fha suckers might have enjoyed by the lower rates. Pmi premiums are now 1.75% upfront, and 1.25%annual That's some expensive insurance to pay, just to avoid using conventional banking loan standards of 20% downpayments I wonder what's been happening to people that signed up for fha loans and paid the pmi for what they thought were the original terms, yet now they find themselves still without the 78% ltv? Does fha contractually force them to continue paying pmi until they hit the magic number or are they relinquished their responsibility after xx months (60,72) not sure what is standard The more I think about this government program, the more I realize it ought to go. And what is it with so many different kinds of insurance going bust? A capitalist society should look to mitigate their own risks, not subjugate that responsibility to so called "insurance" mechanisms, especially when they are exposed to not really model risk assessment that well themselves.

4. Oil Can Follow Befriend 21 threads 128 comments Oil Can's website

   4   8:21am Tue 31 Jul 2012   Share   Quote   Permalink   Like   Dislike   errc says They have already jacked up their fees bigtime, devouring the savings would be fha suckers might have enjoyed by the lower rates. Pmi premiums are now 1.75% upfront, and 1.25%annual I read that if these delinquencies continues and move into default that FHA could be 50 billion to 100 billion upside down. Especially, since not paying your mortgage is becoming more acceptable.