By Patrick follow 2012 Nov 20, 1:38pm 544 views 2 comments
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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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there are no losses just "periodic deficits".. as our tax dollars continue to infuse FHA and GSE.
$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.