The Real Deal Miami

Concerns abound over FHA overextension

November 30, 2009 03:21PM

As the Federal Housing Administration plays an increasingly central role in home loans — approximately half of new home loans are insured by the group — some industry experts are growing concerned that FHA is ill-equipped to handle the burden. Currently 5.5 million homes are insured under FHA, with 8.5 percent of those 90 days delinquent or in foreclosure. CBS News via the Mess that Greenspan Made reported that the FHA has just 172 staff members to review applications and potential lenders. This, coupled with the massive number of loans FHA insures, has many industry experts concerned over its longevity.