The Real Deal New York

Posts Tagged ‘Federal Housing Administration’

  • The verdict was nearly unanimous at a recent hearing on Capitol Hill: The new federal “ability to repay” and “qualified mortgage” regulations that took effect Jan. 10 will make obtaining credit tougher, not easier, this year, and potentially force large numbers of credit-worthy homebuyers to defer or cancel their plans. [more]

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  • fha_tighter_lending_graphic_elert.jpg

    Mortgages insured by the Federal Housing Administration are often the only port of call for borrowers who can’t afford a hefty down payment, but critics say that the FHA mortgages come with high premiums that exploit these borrowers.

    If the economy were to slide back into a recession, said Edward Pinto, a fellow of the American Enterprise Institute, the majority of FHA loans would be at high risk of default. And since the FHA prices all the loans equally, borrowers have no barometer to gauge the relative riskiness of their loans. [more]

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  • Congressman Jeb Hensarling

    Jeb Hensarling

    For the first time in its nearly 80-year history, the Federal Housing Administration will need a taxpayer subsidy, after it failed to make up for losses on loans it backed during the housing bubble. The government mortgage insurer will draw money from the U.S. Treasury to buttress its insurance fund by the end of this month. Budget officials are currently working to figure out how much of a cash infusion the FHA will need. [more]

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