Archive for the 'fha loans' Category

The failed mission of the FHA – supporting high home prices when your mission is affordability. Low interest rates are a reflection of a global financial crisis and not a healthy economy.


Will the FHA require a bailout? – 12,000,000 underwater mortgages 3,000,000 are FHA insured loans. 1 million underwater mortgages originated in last two years.


The incoming bailouts for the government mortgage complex and student debt markets – 15 percent of FHA insured loans are 30+ days delinquent. Total first mortgage market fell by $600 billion since 2007 yet government backed mortgages rose by $1.1 trillion.


FHA insured loans have stepped in to fill a gaping void left from low down payment mortgage products. The risk and consequence for this action is now coming home to roost in a dramatic fashion.


The down payment boogeyman – report finds requiring a 20 percent down payment would push out 60 percent of borrowers from qualified residential mortgages (QRMs). Those 29 to 34 acquired a mortgage for the first time in 1999 to 2001 at a 17 percent rate but that rate is now down to 9 percent.


The future of the young American homebuyer. Average foreclosure timeline jumps from 253 days in 2007 to 674 days in 2011. Homeownership rates for younger Americans point to significant issues in household income, demographic changes, and attitude shifts in the desire to buy a home.


Judgment day for housing shadow inventory already here – Foreclosure inventories reach an all-time high. FHA and GSE loans only game in town.


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© 2012 Dr. Housing Bubble