FHA facing insolvency?

[Winehole23]

Concerns are rising that the Federal Housing Administration could run out money if the economy doesn't recover soon, raising the risk the agency would seek a taxpayer bailout for the first time in its 77-year history.

Since the mortgage crisis erupted five years ago, the FHA has played a critical role in housing finance as private lenders retreated. It backs about a third of all new mortgages originated for home purchases, up from around 5% in 2006.


But, as the FHA prepares to release its annual financial report next week, a forthcoming study by Joseph Gyourko, a real estate and finance professor at the University of Pennsylvania's Wharton School, estimates that the FHA faces around $50 billion in losses in the coming years.


...Last month, Paul Miller, an analyst with FBR Capital Markets, warned that the largest U.S. banks could face billions in losses if the FHA tries to push back defaulted mortgages onto the lenders that originated them. "Unless home prices rebound, I don't understand how they're able to avoid a restructuring and a Treasury infusion," he said.
http://online.wsj.com/article/SB10001424052970203537304577030390221704000.html

via Reason (http://reason.com/blog)

[Winehole23]

http://cess.nyu.edu/caplin/wp-content/uploads/2010/07/Reassessing-FHA-Risk.pdf

[boutons_deux]

Just another reason, among very many, why jobs and mortgage crises MUST be addressed before the Repugs' false crisis of federal deficit.

[Drachen]

Please just wait until my streamlined refi is completed

[coyotes_geek]

We've already addressed the mortgage crisis. The taxpayers get to cough up a blank check and we move on with our lives.

[coyotes_geek]

Please just wait until my streamlined refi is completed

I just finished a refi about a month ago. It was anything but streamlined.

[Drachen]

I just finished a refi about a month ago. It was anything but streamlined.

who was it through? Was it a supposed "fha streamline"

[coyotes_geek]

who was it through? Was it a supposed "fha streamline"

It was through some small lender. They never mentioned "FHA streamline" so I'm assuming it wasn't. Pretty drawn out process to get to closing. They were very thorough, which is good, but still a PITA for the Mrs. and I.

[Drachen]

Ah, well, I have an FHA and am refi-ing to an FHA, so I can use the streamline program. They basically use a lot of the info from the original loan and so the paperwork is streamlined. You can't take cash out (which is fine). All told, closing is supposed to be about 2 weeks from initiation of the loan process (as long as you don't drag your feet getting the info to them).

[Drachen]

Oh and any time I talk about mortgages I have to do this: Wells Fargo Origination sucks balls!!!!


however their servicing is excellent.

[boutons_deux]

We've already addressed the mortgage crisis. The taxpayers get to cough up a blank check and we move on with our lives.

Bullshit lie

After we saved their bankrupt (they're still bankrupt) asses, they absolutely refuse to help underwater/distressed homeowners, won't refi, etc, while foreclosing 100s of 1000s, if not millions, of homeowners where the title is so cloudy it's ridiculous, all due to their fraudulents paper system, MERS, and foreclosure mills. They won't budge since refi and longer terms, and/or moving from ARM to fixed, would cost them, not bankrupt them, but cost them

fuck 'em all to hell.

Now with interest rates so low (the opposite of sub-prime), they don't want to write mortgages, while the pushed sub-prime/ARM mortgages like coke dealers in the early 2000s.

[coyotes_geek]

Bullshit lie

After we saved their bankrupt (they're still bankrupt) asses, they absolutely refuse to help underwater/distressed homeowners, won't refi, etc, while foreclosing 100s of 1000s, if not millions, of homeowners where the title is so cloudy it's ridiculous, all due to their fraudulents paper system, MERS, and foreclosure mills. They won't budge since refi and longer terms, and/or moving from ARM to fixed, would cost them, not bankrupt them, but cost them

fuck 'em all to hell.

Now with interest rates so low (the opposite of sub-prime), they don't want to write mortgages, while the pushed sub-prime/ARM mortgages like coke dealers in the early 2000s.

Never said it was a good deal for us, but it is resolved. Our duly elected government has decided on our behalf that we get to be the backstop for the entire mortgage industry under the guise that it's for our own good.