Reuters reports that the American Securitization Forum has deemed FHA Secure a failure. The members proposed an expansion of FHA Secure which would include less stringent requirements to qualify for a refinance using FHA Secure. Another proposal mentioned in the article was:

…”short refinancing,” in which a borrower refinances a loan whose balance is more than the underlying property’s value, Kudenholdt said. The new loan would cover the lower home value, giving investors in the first loan a principal loss.

According to the article FHA Secure has so far only aided 1,000 borrowers and only has the potential to help 44,000, or a mere 5% of the people affected by the subprime crisis.

This entry was posted on Thursday, February 7th, 2008 at 1:01 pm 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.