FHA Bailout: Federal Housing Agency Has Lowest Amount Of Cash On Record

bloomberg.com:

Nov. 12 (Bloomberg) -- The Federal Housing Administration's mortgage insurance reserves fell to the lowest level in history and the government said more steps are needed to shore up the agency that guarantees one of every five single-family loans.

Read the whole story: bloomberg.com

Comments

[robinhood1]

What do you expect to happen when you give mortgages out to borrowers with only 3% down? Lousy underwriting standards lead to high defaults, which mean large losses in the current real estate market.

[Stop Wall Street]

Yay another huge rally for Wall Street. Stocks surging. Real unemployment (including those who 'stopped looking' lol) is at 20%. once again ,this proves that the government is in the tank for Wall Street or else there would be more jobs even if the jobs arn't considered efficient by economist standards. Scr3w them.
good articles: http://financeopinionss.blogspot.com

[NoMoreBail2]

We, the American people, dug ourselves into this hold for which there is no escape.a

hat tip to: http://financeopinionss.blogspot.com

[dnpvd51]

Obama, Zimbabwe and the Weimer Republic all have in common?

Three guesses.

[CaliGrown78]

My grandpa told me a looooong time ago that owning a house isn't always worth it & this comes from a man who is very smart & well educated. He says they want to make you think it's the American dream so everyone could rush out & blow there money & he is right. I personally have no desire to ever buy a home unless it's so cheap I can do a 10 year mortgage but there is no way I intend to spend the next 30 years of my life paying for sh*t. I work directly with FHA & I gotta say I'd rather loose my job than bail one more incompetent group of losers out!!!!

[Noel Siksai]

What would have mitigated both the foreclosure wave *and* the FHA's loss of reserves would have been stricter policing of the mortgage servicers' use of the partial claims process. Right now, the servicers qualify borrowers to participate, and given that they make more by foreclosing and filing a full claim, their interest isn't in working with the homeowner. However, stricter FHA oversight would have reduced the claims to probably 10-30% of what they have been, and would have made a big dent in the foreclosures. To participate, however, the borrower must provide proof of ability to pay, like a pay stub. However, given the mortgage companies interest and profit motive in gaming the system, the FHA has totally ignored the gaming of the system by the mortgage companies.

[iskra]

Rattlecat:

Finned for consistently calm, thoughtful posts in the face of Tro//s and repetitive talking points.

[TomSpiffy]

Folks, the plain reality is that some people will never be able to afford a house. My grandmother couldn't but she had a nice apartment. Stop making every desire a "right."

[leduck]

"Folks, the plain reality is that some people will never be able to afford a house"

SO...

[TomSpiffy]

So cry me a river!

[willt7311]

I got to go all. I will try and drop in later.

Have a good day everyone and happy Friday the 13th!

[iskra]

Ciao

[chancho24]

Later loser. Just kidding...­or am I? :-)

[chancho24]

Seriously, have a good time.

[willt7311]

One more fun one before I have to go!

http://www.youtube.com/watch?v=6ScPoBEFl1Y

[willt7311]

Another fun Friday song.

http://www.youtube.com/watch?v=PoD6YRzofZk

[BradSmith]

She's Some Kind Of Wonderful- GRAND FUNK

http://www.youtube.com/watch?v=rOIYU7UmZnY

I got lucky and I have lived this dream for over 20 years now.

[willt7311]

Nice. I love it!

[BronxBorn]

Cover band ?
There is nothing wrong with that as long as you can pay the rent.

[greatlardini]

Congratulations1 Closing in on ten, myself. I've done a lot of dumb things in my life, but marrying Mrs. L. makes up for all of them.

[BradSmith]

I hear yah. the lovely Denise is definately my better half.

[gmailliw]

"how do you know these people who take this money can pay for this house and be able to sustain it?"

--siasina, on the $8000 homebuyer tax credit.

==========­==========­==========­==========­==========­==========­==========­====


I find it amazing that you think that these homebuyers won't be able to sustain their mortgage payments.

The people who are buying homes right now, are about the safest pool of homeowners we have seen in decades. This pool is being asked to have downpayments of anywhere from 20-33% in many -- most -- cases, as opposed to the 'no money down' exotic loans of the past decade.

By putting that amount of money down, they instantly have more teeth in the game, and are less likely to fall underwater.

On top of that, lending guidelines have tightened EXTREMELY.

This pool of homeowners is about the least risky we have seen in quite a long time. Assuming they can't sustain their mortgage payments is nonsensical.

[siasina]

Read my post below. Americans need to save money, not spend money and data shows that people ARE saving. Why is the government encouraging people to buy houses and putting them in debt? Sure, it looks good politically, but it's hazardous policy.

[gmailliw]

Personal Savings rates are the highest in quite a while.

And do you understand that many people have their 'savings' tied into their home equity. If their home prices continue to plummet, then savings rates plummet.

And no, it is not hazardous policy.

[siasina]

Plus the job market is volatile, why do people want to buy a new house in this type of market?

Just read my post below and come up with a response there.

[gmailliw]

They buy a house if they feel they have job security.

It's not your decision to make.

[Robeerst]

Margaret Thatcher is gone

[RachelTenshun]

What a happy thought, dear.

[leduck]

thatcher will prove to have been a disaster for merry old england

[willt7311]

A song for Friday night!

http://www.youtube.com/watch?v=5ucAEdM8CLY

The good ole days!

[BronxBorn]

I never cared for metal.
I'm a more CSNY and Rolling Stones, and Beatles, The Doors, and so on.

[willt7311]

It is all good. I like that stuff too.

Well, not too much Stones except for "Paint it black"

That song is awesome!