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FHA Going Broke?

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by Terrel L. Shields, Sep 5, 2009.

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  1. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    Top Poster Of the Month

    750
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
  2. George Hatch

    George Hatch Elite Member

    351
    Jan 15, 2002
    Professional Status:
    Certified General Appraiser
    State:
    California
    After the fall of Fannie/Freddie, FHA became the default conduit for subprime lending. That's the direction many of the brokers went when the HVCC stripped them of their control of the appraisals.

    I think we've already proven the fallacy of "too big to fail". There will be another bailout because, even more so than with the GSEs, the government really does have to bankroll FHAs losses.

    FHAs current problems are bad for the nation as a whole, but ironically they will probably end up being good for us. FHA will have to revamp their due diligence protocols and collateral valuation is where it's at when you have ultrahigh LTV programs.
     
  3. Michael Tipton

    Michael Tipton Senior Member

    0
    Sep 25, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    The question is how long will the political appointees wait before they address this issue?
     
  4. Offshore

    Offshore Senior Member

    0
    Dec 25, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Since they have a huge stake it what goes on, at some point the Chi Com's politburo will step in and say enough is enough. Imagine that, our economy may be saved from the corrupt, inept socialists by frugal, prudent Maoists. :icon_idea:
     
  5. OSU Beavers

    OSU Beavers Elite Member

    24
    Jan 10, 2007
    Professional Status:
    Licensed Appraiser
    State:
    Oregon
    Does HUD still not prorate P&I for the month you payoff your FHA loan for a new conventional refi? That was a shocker for me ten years ago.
     
  6. Mike Garrett RAA

    Mike Garrett RAA Elite Member

    48
    Jan 14, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    What government program isn't broke?
     
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