Archive for August, 2007

On The Bright Side…

Thursday, August 16th, 2007

All this doom and gloom may have you feeling very down in the dumps, but fear not! As Forbes points out, all this housing trouble may light a fire underneath the progress of FHA modernization. This is similar to the earlier story about how reforms should get moving after August, but its got the added delight of some bytes from HUD’s assistant secretary Brian Montgomery:

“Every day that we don’t get some sort of reform is a day that we can’t help families that are trying to get out from a high-cost exotic subprime loan,” Montgomery said.

Yes, FHA will be great for first time home buyers and those who are trapped in ever-rising ARMs.

To Modernize or Not To Modernize?

Tuesday, August 7th, 2007

As anyone who has scanned the pages of FHABook knows, I am all for FHA modernization. I think it will be a great service to borrowers and make the FHA more relevant in today’s lending market. Here is a column with some opposing views presented by Peter Miller on the Realty Times site.

I do understand Peter’s point that since FHA is currently making a comeback modernization may be unnecessary, however the aspects of FHA that need to be reformed are what allowed subprime to take over in the 90s. Just because subprime is in some hot water right now, doesn’t mean that something else won’t come along and defeat an outdated FHA again. I know we shouldn’t fix something that isn’t broken, but FHA has been broken for awhile and still needs a serious amount of fixing.

The FHA Today: Abridged Version

Thursday, August 2nd, 2007

Check out this post from the Mortgage Cicerone that is chock full of information. It’s got information on DPAs, FHA benefits, and helpful lists with random FHA info and guidelines. Good insight and lots of information crammed in there. Here’s an excerpt:

FHA not only helps people buy a home, but helps them keep it as well. In return for protecting lenders against loss, FHA requires financial institution to offer assistance to borrowers experiencing difficulty making mortgage payments.