[Dee Dee]

http://www.nytimes.com/2008/04/09/bu...ss&oref=slogin

Housing officials say the agency will face a deficit for the first time in its 74-year history, starting in the fiscal year that begins in October. And they blame a rapidly growing and increasingly troubled sector of the F.H.A.’s mortgage portfolio, known as the seller-financed down payment loan program, which has suffered from high delinquency and foreclosure rates in recent years.

Under the program, a home seller arranges to cover the buyer’s down payment — using financial help from a nonprofit company — but typically adds that sum or more to the total cost of the house. The arrangement has been particularly attractive to financially struggling buyers and to owners in depressed housing markets, according to Congressional officials.

Bold is mine.

I guess we can thank the appraisers who found ways to justify that "extra value" on their appraisals for having a hand in creating this problem.

[Randolph Kinney]

I suppose we can thank FHA for the dumbing down of their programs and their appraisers that are acceptable.

[The Matrix]

A tard could have seen this coming...and it's just the beginning.

[Ken B]

We are observing the effects of a socialist economy which rewards those who have not produced and punishes the successful.

Socialist economies are typified by large governmental bureaucracies which attempt to "even the playing field" by giving to those deemed less fortunate and taking from those who deserve the rewards of their sweat and learning.

Anybody see where this is going? Lots of "tards" out there crying for Big Mama to save them from themselves.

[Tudor]

Was always fun to hear the realtors justify the increase in sales price over the listing price.

[RSW]

Just wait and see what happens when all of those MB's get HUD/FHA approved. They have already started.

[Tim Hicks (Texas)]

But, but, but...those seller concessions are typical and should not be adjusted......yeah, right!

[john eickhoff]

FHA has tried to get rid of the DPA's for a long time but due to political pressue they weren't able to get the job done. IRS has made a stab at it also but it looks like they have hit a brick wall also. I think in the future you will see FHA turning the properties back to the lender's rather than paying the fee.

[Mike Boyd]

Originally Posted by Kenneth Brown

We are observing the effects of a socialist economy which rewards those who have not produced and punishes the successful.

Socialist economies are typified by large governmental bureaucracies which attempt to "even the playing field" by giving to those deemed less fortunate and taking from those who deserve the rewards of their sweat and learning.

Anybody see where this is going? Lots of "tards" out there crying for Big Mama to save them from themselves.

In Liberaleeze, it's called "Redistribution of Wealth." A Hillary Clinton favorite when she is not campaigning.

[Green Hornet]

Mike, Kenneth,

A bit off track of original post, but... The largest "Redistibution of Wealth" that I have seen in decades is that from the Federal Treasury (us) to Corporations.

Examples:

Lost & Unaccounted for in Iraq - $9 billion of US taxpayers' money and $549.7 milion in spare parts shipped in 2004 to US contractors. Also, per ABC News, 190,000 guns, including 110,000 AK-47 rifles.

Missing - $1 billion in tractor trailers, tank recovery vehicles, machine guns, rocket-propelled grenades and other equipment and services provided to the Iraqi security forces. (Per CBS News on Dec 6, 2007.)

Mismanaged & Wasted in Iraq - $10 billion, per Feb 2007 Congressional hearings

Halliburton Overcharges Classified by the Pentagon as Unreasonable and Unsupported - $1.4 billion

Amount paid to KBR, a former Halliburton division, to supply U.S. military in Iraq with food, fuel, housing and other items - $20 billion

Portion of the $20 billion paid to KBR that Pentagon auditors deem "questionable or supportable" - $3.2 billion


Now that is a true transfer of wealth!