patrick.net
An Antidote to Corporate Media
1,364,494 comments by 15,735 users - HANrongli, mell, Tenpoundbass online now
Comments 1 - 2 of 3 Next » Last » Search these comments
To answer my own question it looks like the FHA is going to lose at least 500 billion dollars goosing the market.
http://www.forbes.com/2008/08/25/fha-housing-mortgages-biz-beltway-cx_jz_md_0826housing.html
HeadSet
@
2009 Jul 30, 6:06am
On PAPER, the FHA costs the American taxpayer nothing
Even if this premise of no taxpayer loss is true in actuality, there is still an issue. Easy FHA credit will cause a number (unfortunately a large number) of Joe O'Howmchamonths to bid up house prices with the new abundance of "free" money. Bad news for those who truly aspire to own a home, as opposed to a 30 year triple net lease to eventually own from a bank.
Comments 1 - 2 of 3 Next » Last » Search these comments
"http://www.hud.gov/offices/hsg/fhahistory.cfm
"Â FHA is the only government agency that operates entirely from its self-generated income and costs the taxpayers nothing. The proceeds from the mortgage insurance paid by the homeowners are captured in an account that is used to operate the program entirely. FHA provides a huge economic stimulation to the country in the form of home and community development, which trickles down to local communities in the form of jobs, building suppliers, tax bases, schools, and other forms of revenue."
________________________________________________________
How can the FHA basically brag about insuring the loosest lending around and then not lose money?
#housing