FHA begins to get it and seeks to raise credit standards
Started by Riversider
about 16 years ago
Posts: 13572
Member since: Apr 2009
Discussion about
http://www.washingtonpost.com/wp-dyn/content/article/2009/12/02/AR2009120200025.html The Federal Housing Administration is proposing to increase the up-front cash paid by borrowers as part of an effort to shore up the agency's finances, which have been staggered by rising defaults in its flagship mortgage insurance program, according to FHA officials. The changes also include raising minimum... [more]
http://www.washingtonpost.com/wp-dyn/content/article/2009/12/02/AR2009120200025.html
The Federal Housing Administration is proposing to increase the up-front cash paid by borrowers as part of an effort to shore up the agency's finances, which have been staggered by rising defaults in its flagship mortgage insurance program, according to FHA officials.
The changes also include raising minimum credit scores for borrowers who receive FHA-backed mortgages and limiting the amount of money sellers can kick in, including paying closing costs or giving free upgrades.
These measures are designed to increase the amount borrowers invest in the homes they buy, thereby making it less attractive for them to default on loans and walk away from properties, as many people have done during the current housing crisis.
"We've learned from recent history that the market is fragile, and we have to plan for the unexpected," Donovan's prepared statement says. "That uncertainty is complicated by an organization we inherited that, to be honest, was simply not properly managing or monitoring its risk."
By requiring that borrowers bring more cash to the table, the agency is seeking to ensure they have "more skin in the game and a stronger equity position in their loans," Donovan says. But he does not specify the size of the proposed increase. FHA officials said they have yet to determine how much cash will be required.
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Response by 1OneWon
about 16 years ago
Posts: 220
Member since: Mar 2008
This won't last long. It's only a matter of time before some black democrats will "claim" racism because some of their constituents have horrible credit, low income, and a bank won't lend to them. Every low-life thinks it's their birth right to own a home - even if they can't afford it. Self-entitlement complex at full swing! Me, me, me, me, mine, mine, mine, job? I don't need no stinking job! So what if I never graduated from HS - I NEED this job!
The Ant and the Grasshopper should be required reading in every public school. It amazes me that so few even know this story.
God, I can't wait for a proper republican (read - non-religious nutjob) to run the country.
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Response by Riversider
about 16 years ago
Posts: 13572
Member since: Apr 2009
Republicans have their own issues. They are kicking out the moderates. a Gerald Ford would not be welcome today(no point in bringing up Gerald Ford other than he was described as a moderate)
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Response by Riversider
about 16 years ago
Posts: 13572
Member since: Apr 2009
You're clearly referencing Maxine Waters. Why nobody brings up how much money she gets from Real Estate interests is beyond me.
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Response by LICComment
about 16 years ago
Posts: 3610
Member since: Dec 2007
Republicans shoot themselves in their feet on social issues. If they were more socially moderate but also fiscally responsible and diligent on national security, they would be much more popular. I agree the religious nutjob stuff is a problem. In one of the debates last year, how many of them raised their hands when asked which ones do not believe in evolution? Wow . . .
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Response by somewhereelse
about 16 years ago
Posts: 7435
Member since: Oct 2009
we're screwed. The Republicans are becoming as stupid as the Democrats, and now the Democrats are officially in debt to the unions and trial lawyers. Can't fix healthcare nationally because they won't touch tort reform. Can't fix NY because the teachers union and healthcare unions own the city and state politicians.... and, yeah, try balancing the budget without touching the TWO BIGGEST ITEMS BY FAR. And, of course the pension issue which the dems are either retarded or corrupt on.
This won't last long. It's only a matter of time before some black democrats will "claim" racism because some of their constituents have horrible credit, low income, and a bank won't lend to them. Every low-life thinks it's their birth right to own a home - even if they can't afford it. Self-entitlement complex at full swing! Me, me, me, me, mine, mine, mine, job? I don't need no stinking job! So what if I never graduated from HS - I NEED this job!
The Ant and the Grasshopper should be required reading in every public school. It amazes me that so few even know this story.
God, I can't wait for a proper republican (read - non-religious nutjob) to run the country.
Republicans have their own issues. They are kicking out the moderates. a Gerald Ford would not be welcome today(no point in bringing up Gerald Ford other than he was described as a moderate)
You're clearly referencing Maxine Waters. Why nobody brings up how much money she gets from Real Estate interests is beyond me.
Republicans shoot themselves in their feet on social issues. If they were more socially moderate but also fiscally responsible and diligent on national security, they would be much more popular. I agree the religious nutjob stuff is a problem. In one of the debates last year, how many of them raised their hands when asked which ones do not believe in evolution? Wow . . .
we're screwed. The Republicans are becoming as stupid as the Democrats, and now the Democrats are officially in debt to the unions and trial lawyers. Can't fix healthcare nationally because they won't touch tort reform. Can't fix NY because the teachers union and healthcare unions own the city and state politicians.... and, yeah, try balancing the budget without touching the TWO BIGGEST ITEMS BY FAR. And, of course the pension issue which the dems are either retarded or corrupt on.