Mortgage Professional America forum is the place for positive industry interaction and welcomes your professional and informed opinion.

FHA can’t cover losses despite $1.7bn cash infusion

Notify me of new replies via email
Mortgage Professional America | 13 Dec 2013, 10:47 AM Agree 0
The Federal Housing Administration remains unable to cover its projected losses even after a $1.7bn cash infusion from the Treasury, according to an independent actuarial report.
  • Brian Shatto | | 13 Dec 2013, 10:57 AM Agree 0
    This is Simple. Quit giving all your money away to HUD and other agencies. They all have a surplus. Make them give it back.
  • Dennis | | 13 Dec 2013, 11:05 AM Agree 0
    It's a shame the Residential 'Forward" mortgages must take a big blow for the losses from the reverse mortgage losses. Putting the costs on the shoulders of new young family homeowners does not make sense.
  • Arez | | 13 Dec 2013, 11:15 AM Agree 0
    Soon we will not be able to do FHA mortgages!! The cost as it is now with a life time PMI is too high for most. People need ease of financing not a LIFE SENTENCE!!!
  • Jolyn | | 13 Dec 2013, 12:01 PM Agree 0
    Arez - I'm with you on this one. It's too expensive for low to moderate income families. 1.75% upfront, 1.45% for the life of the mortgage. It's a HPML right off the bat without out any fees we as lenders have to charge. Don't know how we will be able to do FHA mortgages with the new QM/Affordable mortgage rules coming out next month.
  • Joe Heisler | | 13 Dec 2013, 12:03 PM Agree 0
    Anyone remember a few years back when FHA LOWERED all premiums because the had too much cash? Maybe Treasury should take some of the Billions Fannie & Freddie are paying back and earmark for only housing initiatives.
  • Jaxin | | 13 Dec 2013, 12:09 PM Agree 0
    If it don't make dollars, it don't make cents....
  • BILL | | 13 Dec 2013, 09:22 PM Agree 0
    they raised mo fees and lost their share of the market in 2013. if they would have raised UFMIP and lowered the monthly, they would have increased mortgage production - good mortgage production of mortgages over 620 score. it is the obama adminsitration way of thinking: tax more and KILL THE ECONOMY.
  • Jon P | | 16 Dec 2013, 10:21 AM Agree 0
    We need to get off the government subsidy of FHA. 5% down conventional is fine with PMI. It's a much better deal for the borrower and much less costs. If you can't get 5% down, it's likely one shouldn't be buying a home as the FHA deliquencies clearly exhibit. FHA has been a handout for Realtors and lenders who probably oppose all other government programs that don't line their pockets. Both the GSE's and the FHA need to dramatically lower their mortgage limits to allow private capital to fund mortgages.
Post a reply