These days Kenneth Harney is the busiest FHA writer around (after me, of course). Check out this piece on the FHA improvement proposal that focuses on the same broad topic as his previous article posted here, but more closely examines issues not brought up in his other article. Of particular interest, is the FHA’s potential to help out those facing foreclosure because of sub-prime loans that have sky rocketing interest rates and the political side of the issue. Harney closes with:

Bottom line for reform: Slam dunk? No way. But the bill has a shot – either in its current form, or by having essential provisions transplanted into an appropriations bill that can sidestep the land mines buried and waiting in the Senate – without blowing up.

This point really stuck with me because with all this talk about FHA reform sometimes it feels like the general sentiment is that these changes are a given. With the wonders it could do for the FHA program, it’s almost impossible to think about what could become of the program if this does not pass…

Oh, forget about the doom and gloom, FHA’s been around since 1934! Whether or not this legislation makes it through, the FHA loan will soldier on and continue to grow in popularity, especially as a result of the sub-prime bust.

This entry was posted on Friday, May 25th, 2007 at 9:24 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.