FHA Loans Meant For Low-Income Borrowers Going To The Wealthy

Bloomberg:

Congress is weighing a proposal to restore higher loan limits that expired on Oct. 1. The measure, already adopted by the Senate, would allow the FHA and government-controlled Fannie Mae and Freddie Mac to insure single-family mortgages for as much as $729,750, up from the current $625,500, in high-cost parts of the country.

Read the whole story: Bloomberg

Comments

[Pami Toll]

12:47 PM on 11/15/2011

When i was middle income and working, I couldnt qualify for an FHA loan to buy my own place, I dont know why, I had good credit. Then When I fell off the ladder to success and became indigent, I still couldnt qualify for an FHA loan. Seems like the govt employees who approve these were either too busy with other things and or too busy turning people down. Maybe you should dispose of employees who are inefficient on the job and put in fresh faces who want to serve the public needs.
Indifference is just as much a problem in govt as not enough funds.

[lulubelle1956]

07:57 PM on 11/10/2011

Multi-million dollar pats in NYC are eligible for Fannie and Freddie. If you can't afford it, don't buy it, and don't expect the taxpayers to pay for you.

[roxette]

10:00 AM on 11/09/2011

Have you ever tried to have a loan from the SBA (small business) If you need the money, no way they will loan it to you, first you have to prove that you don't need a loan to receive a loan. Crazy

[Sophia Petrillo]

12:01 PM on 11/11/2011

So true Roxette been there done that with SBA. I went in the office spoke to a counselor, he was very nice he referred me to a contact within the office it was for a Black Woman Business Alliance she claimed she was locked out of the computer. She gave me her business card I sent emails and called and left voice mails I never heard from her again. I think Obama needs to hear about some of the people he is entrusting this money to are selectively discouraging or misleading people who wish to become entrepreneurs.

[jalaroc]

11:55 PM on 11/08/2011

Great, we're once again subsidizing overpriced housing so builders, realtors, and speculators can get a higer profit margin on their businesses. Let's face it, alot like the escalating tuition problem, government monies are not really being used to ensure that average americans can get a home but rather companies are using them to amass enormous profits. Average americans can't afford the cost of tuition or a house? The government provides funding in attempt to make those things affordable. The companies' response? Jack up prices even more and keep the extra money flowing in. If government wants to support education and the housing market by infusing money into those activities, it needs to start acting like a consumer and start haggling because those companies involved in these activities will just keep raising prices as more and more government money comes into the system.

[edejan]

10:51 PM on 11/08/2011

Isn't this part of the whole clusterflox that created the housing bubble? WTH are our "congressional representatives" voting this up for? The system is so corrupt it can't be fixed. OWS.

[lvdragonlady]

09:40 PM on 11/08/2011

Sounds like it is TIME got get rid of WHO is making these decisions and put someone in there that is not being paid off.

[IfIonlyknew]

09:16 PM on 11/08/2011

Same thing that happened to the small business loans that were offered...Fat pigs decided that a 5 or 10 million dollar business was little and nothing got down to those that could use it.

[roxette]

09:51 AM on 11/09/2011

F & F

[nothingchanges]

08:21 PM on 11/08/2011

Watch the presentation in "We're not broke" in today's HP under politics..............

http://www.huffingtonpost.com/annie-leonard/were-not-broke_b_1080080.html?ref=politics&ir=Politics

Best explanation of our dysfunctional government I've seen.

[pcflamingo]

06:51 PM on 11/08/2011

“We have a convoluted policy in America where the most financially qualified individuals are being forced to pay higher rates because they’re outside the loan limits,” said Lawrence Yun, NAR’s chief economist."
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Oh boo-hoo. FHA loans were never intended to be for "the most financially qualified individuals" - they were supposed to be for financially qualified middle Americans, the ordinary borrower not the extraordinary borrower. Cry me a river, NAR.

[Ed Baker]

05:52 PM on 11/08/2011

Yes, increasing the FHA lending limits in high cost areas was supposed to help prop up the real estate prices.....

[abinglewood]

03:57 PM on 11/08/2011

Our country is so bad off now days that the rich can qualify for low income loans lets keep giving the poor rich people more tax breaks because they don't know how to use the system. There is probably more corporate wlefare than there is individuals receiving welfare in revenue.

[FoonTheElder]

03:30 PM on 11/08/2011

Isn't this what the Republicans and Blue Dogs think that government is really for? After all practically every bill passed in the last ten years is either pure welfare for big businesses and the wealthy. Any bill that helps the average person has to be weighted down with huge amounts of big corporate welfare, like the Medicare drug program that was a fully deficit funded program that required overpayment of drugs to pay off big drug companies. Obamacare is as weak as it is because it is full of welfare to the health insurance companies.

[econ1]

03:22 PM on 11/08/2011

"already adopted by the Senate, would allow the FHA and government-controlled Fannie Mae and Freddie Mac to insure single-family mortgages for as much as $729,750, up from the current $625,500"

You would think this sop to the wealthy would go down...not up...especially in the Senate where there is a Democratic majority. Why should we subsidize million dollar homes? What gives? Time to get rid of all of them.

[kimhoulian]

03:06 PM on 11/08/2011

I wonder how many GOP Tea heads are ready to admit they received a FHA loan when they purchase their home...come out come out where ever you are trolling. For some reason when you are out preaching against freddie and frannie you don't include yourself as a partakers of the same program.

[ImmanuelGoldstein]

11:58 AM on 11/09/2011

About 95% of mortgages these days are backed by some government entity. The simple truth is that house loans in America these days are pretty much the province of pure socialism.
Fannie and Freddie should be either shut down or their loan limits should be capped at the median housing price. We need to stop propping up housing prices. The best program for affordable housing is a price crash and we are in the middle of a doozy with more to come.