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To Stem Losses, FHA Mortgages Get More Expensive

By Patrick   Follow   Tue, 20 Nov 2012, 9:38pm   275 views   2 comments
In Menlo Park CA 94025   Watch (0)   Share   Quote   Permalink   Like   Dislike  

http://www.cnbc.com//id/49856477

The federal agency that some credit with saving the housing market during the worst of the recent crash, may now be in need of taxpayer help itself. The Federal Housing Administration (FHA), which insures more than $1 trillion worth of home mortgages, is looking at $16.3 billion in losses, according to an annual audit released today.

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1. thomaswong.1986 Follow Befriend 15 threads 2,845 comments

   1   10:42pm Tue 20 Nov 2012   Share   Quote   Permalink   Like   Dislike   there are no losses just "periodic deficits".. as our tax dollars continue to infuse FHA and GSE.

2. Kevin Follow Befriend 40 threads 2,652 comments

   2   3:13am Wed 21 Nov 2012   Share   Quote   Permalink   Like   Dislike   $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.