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PockyClipsNow
2012 Mar 29, 7:57am
PockyClipsNow
2012 Mar 29, 7:57am
FHA became 'new subprime' over night when wall street could no longer package fraudlent liar loans into MBS for deutch bank and pension funds to buy. THey are still writing horribly loans with massive loss rate as we sit here on taxpayer dime of course.
Cross posted from North OC Housing.
http://northochousingnews.com/uncategorized/4269
Pending (not passed) legislation that would further increase FHA fees and enable them to get money back if the bank cheated with underwriting (they couldn't do this before???). Some of the even tougher conditions proposed such as reducing the insurable % were taken out after objections from e.g. Barney Frank: "At this point, to send a jolt to the housing market I think is a mistake". No we wouldn't want that now, would we Barney? How about later this year or 2013, could that be a better point?
I could see how FHA loans will get less relevant by "a thousand cuts", they will be forced to add more fees and stricter conditions until they don't offer much benefit over non-FHA loans. The Barney Franks of the world will push back at every step but with another FHA bailout around the corner they will be forced to retreat one step at the time. Wow this makes me sound like a political expert - I'm not. What do you think?
#housing