The FHA insures loans and it is going broke as the flood of bad loans continues to hit the market.
They just passed two new rules to help keep them afloat...they are increasing the insurance premium they charge for FHA insured loans to 2.25% and they are requiring a credit score of 580 or more. 2.25% on a $200,000 loan is $4,500.
Borrowers will still only need 3.5% downpayments for FHA insured loans; the mortgage premium will just be added to what they owe.
I think the FHA will end up asking for a federal bailout.
Today's comments by our President failed to integrate how Barney Frank's push to make it easier to buy a house resulted in bad loans that greatly contributed to the financial crisis. Or why there is no proposed tax on Fannie Mae and Freddie Mac's obscene profits.
"The Buck Stops Here!" one day;
"It's Not My Fault! It's Their Fault!" the next.
We are listening to a blame game with no popular, common sense solutions being proposed. Florida postponed the problem by requiring all new foreclosures to first go through an arbitration process before a lein can be filed. Then what?
To see the full article from Florida Realtors News, click here...
http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=230514
Hang on Sloopy, Sloopy Hang On!
