Tue, 20 Nov 2012, 7:13pm PST
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$13 a month more in PMI? Oh no how will people ever deal with that.
Increasing the threshold for short sales will be a much more interesting change.
$16B isn't really much of a deficit compared to what they're insuring.
What bothers me about the FHA is that pretty much anyone can take advantage of it, and the limits are high enough that you can use it to buy absurdly expensive houses in certain areas.
First time home buyers? Low income (but good credit history and enough income to make the payment) buyers? Sure.
People who are making 3x the local median income and want to buy a much nicer house than they 'deserve', but just couldn't be bothered to save up 20%? No way.