FHA in trouble . . . Sort of
The best way to prepare for life is to begin to live.
- Elbert Hubbard
Apparently, the FHA is in trouble. See, the
gov’t requires them to have a minimum balance
on hand to cover any loan losses that may come
their way. This amount may be arbitrary or it
may have some connection to historical fact.
Either way, they’re obligated to have a
certain amount and they don’t have it. But don’t
panic!! It’s not that bad.
According to their records, they actually have enough money in their reserves to handle all potential loan faults for the next 30 years plus. That doesn’t sound so risky to me.
But you know Washington. It’s all about red-tape
and regulations. The gov’t's all nervous that
the FHA will run out of funds. So they’re
considering imposing some new restrictions
like requiring higher down payments or higher
insurance premiums. These drastic steps would
affect millions of hard working Americans.
Many lobbying groups have tried to head the
Federal government off at the pass and
prevent any drastic measures from being passed.
Organizations ranging from the Consumer
Federation of America to the Mortgage
Bankers Association have written strong
letters to defend the FHA. Their efforts
are meant to make it easier for the
FHA to continue its work despite the
perceived risk of having reserves below
federal guidelines.
As these organizations carry significant
weight with the US government, it’s
highly possible that their efforts will
be successful.
Meanwhile, I want to hear what you
thought about the launch that finished
last week. Leave a comment on my blog or
send me an email and let me know your
thoughts. What did you think of the program?
Whatever’s on your mind, just let me know.
