The Other Side of the Coin

As with any hot news topic, the modernization to FHA Loans has many proponents as well as opponents. Although I am a strong supporter of FHA reform, I wouldn’t want anyone thinking that FHABook.com is unaware of the criticisms. This post by Dr. Housing Bubble presents an opposing view point. Although I don’t agree with many of the points, they are well thought out and worth considering. My biggest counterpoint to the article is that, although the FHA caters to borrowers who otherwise would have gone with a subprime loan, it is not a subprime. FHA has many more safeguards and guidelines to protect consumers that were obviously absent in subprime lending. FHA loans have been around for nearly three quarters of a century, subprime barely held on a decade.

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