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Archive for tag Fha

Help is on the way!

February 02, 2010 at 06:01 AM · Posted under Glenn Hanon

Well it might not be there in time for many home owners who find themselves “underwater” in their mortgage. As a heads up the new HAMP program or Home Affordability Modification Program, that Washington put in place, has a few changes that were recently implemented. The goal is to streamline the process. Click Here for more information on the HAMP changes.

In other news, a report recently released indicates that FHA is in good shape. Some people critical of the FHA were concerned that they are taking a bigger risk in the mortgage business with their dramatic increase in market share. This story makes the point that their share has risen from a 3% market share to a 30% market share almost overnight. A personal note: FHA has played a role in the real estate recovery; however the low down payments are very concerning. Yes FHA requires a higher credit score, however even with good credit if one of the two persons who are buying the housing loses a job (a possibility in this economy) or their income is adjusted slightly, does FHA think those borrowers wont default? These are difficult times for everyone. The sooner we move towards responsible lending and borrowing the better our recovery will be. If the borrowers continue to live on the edge we could face another round of difficulties.

Posted by:Glenn Hanon

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FHA in Trouble?

November 04, 2009 at 04:21 PM · Posted under Glenn Hanon

In July of 2007 the news media was abuzz with the news that one of the largest mortgage lenders in the United States was set to go down in flames. That was then this is now. The Federal Housing Administration, FHA, began touting no down payment options when the private sector realized the nightmare that was on their doorstep. I remember commenting to my colleagues that the “No Down Payment” schemes were terrible but that the government’s insistence to continue this practice was not a good thing for our market. Some argued that this was a necessary program that offered an alternative to the potential pool of buyers who wanted to own a home but just needed that extra help. Today in the Wall Street Journal it was noted that 24% of the loans issued in 2007 are going bad and an additional 20% of the 2008 loans will go bad as well. Responsible lending must be the key to a recovery and not the quick fixes that we so often run to. The government pilloried the private banks for their shameful practices, but then did the same thing as the market was disintegrating with their own agency—the FHA.

FHA Digging Out

Posted by:Glenn Hanon

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