Easy-money mortgages still provided, by the feds

[red states rule]

No wonder people are still defaulting on their loans, and I am getting calls from new customers who can't make their payments

Dems are still pushing for unqualified people to get these loans



Easy-money mortgages still provided, by the feds

So you thought easy-money mortgages with little or no down payment for people with bad credit was a thing of the past? Think again.

You can get just such a loan today - and it's guaranteed by the federal government.

Loans insured by the Federal Housing Administration (FHA) have become "the new subprime," and these loans are exposing taxpayers to the same kinds of soaring default rates and losses that brought down Fannie Mae and Freddie Mac as well as destroyed many banks and the private market for mortgage loans.

While private lenders learned a lesson from the mortgage crisis and are shying away from easy-money loans, the FHA has stepped into the breach. The agency has provided backing for 37 percent of all mortgages used to buy homes this year.

After the collapse of much of the private mortgage market last year, Congress and the George W. Bush administration greatly expanded the FHA's original Depression-era program aimed at assisting sales of modestly priced homes by more than doubling the ceiling on loans that the agency can insure to $625,500 while maintaining its loose lending terms - ensuring that nearly any home sale could be covered by the agency.

The FHA's predominance was enhanced further this year when Congress lifted the ceiling to more than $729,000 for major urban areas and passed an $8,000 tax credit for first-time homebuyers that can be accelerated for borrowers to use as a down payment on FHA loans and avoid any cash commitment to their home purchases.

http://www.washingtontimes.com/news/...cube_position1

[red states rule]

Why is it Dems never learn from their previous mistakes?

I will give Obama credit for one thing. Defaults on home loans is continuing to increase, so he is stimulating one segment of the economy

[cat slave]

One promo actually said "less documentation"....they are not even trying to
hide it anymore.

[red states rule]

One promo actually said "less documentation"....they are not even trying to
hide it anymore.

Meanwhile our tax dollars are being pissed thru on new programs for those who can't deal with the mistakes they made

[cat slave]

Too true!

[Kathianne]

reinflating the bubble. Great idea.

[red states rule]

reinflating the bubble. Great idea.

Obama economic poliices are benefiting me directly. At work, I am helping out with the increased workload and demand for loan modifications.

There is no question that thanks to the Hope and Change express, and the Dems once again lowering the requirements of borrowers to get these loans, people who can't afford the house are calling demanding help under the "Obma Plan" as they call it

I always thought owning a home was smething you worked for, and saved up for. Now with Dems, it is a right - like healthcare

First Dems gave the nation subprime home loans - next up - subprime healthcare