FHA and structural defects

[CANative]

don't drink the grape juice.

i'm sorry , which part of the constitution allows the government to be "insurers".

I think it's in that part of the Constitution that a certain administration ripped out and is now using to light cigars.

 

[glenn walker]

Announced on Friday... 2013. Old news. It was a statutory requirement regarding the 2% reserves. The markets improved and the money was never used. Right wing TEA party stuff.

https://fas.org/sgp/crs/misc/R42875.pdf

It's very difficult for any layman to determine the health of FHA because FHA is just a part of HUD which has hundreds of different programs and like most government agencies is driven a lot by political wants and needs of local and national politicians. As far as being self funding, that is not really true be cause HUD is funded by the Federal Government and like all bureaucracies each year they ask for more money. So as long as their budget needs are fulfilled they never show a loss. FHA loan defaults are normally covered in times of good or stable markets but in times like real estate recessions if short lived reserves or generation of new loans and insurance fees can cover those defaults. Essentially it's really a reverse scenario and that's why FHA tends to actually reduce MIP fee's when markets start to slow because that whips up new up front money. The cat and mouse game is just how loose do you get in order to generate new up front revenue ?

In Summary : It really doesn't matter if its self supporting or not because like Fannie & Freddie they have access to large lines of credit from the Federal Reserve and neither one can really go out of existence because private money does not want the risk of funding and holding 30 year low interest rate loans. The FHA was the lifeline after the 2008 mortgage meltdown when everybody else pulled out. No politician is going to let FHA/HUD go out of business and all you have to do is raise the annual budget and BINGO your good to roll forever : ) LOL

 

[glenn walker]

Class K doesn't mean crap construction. Here's a piece written by one of our local Realtors®

BillBarksdaleRealEstateJournal&Thoughts About Life

Real Estate, Willits, Bill Barksdale, Homes, Houses, Mendocino, Bill Barksdale Blog, Real Estate Blog, Real Estate Journal, Willits Weekly Real Estate

bbarksdale.com

Now that I think about, the redwood stump house was actually in a remote area of Sonoma County (near Annapolis) and I don't think Sonoma has a Class K (by that name) but they do have a similar process for the same reason.

Interesting I had assumed you were referring to just a term locals used. BUT in your area a person can actually owner build to this code. NOT down here that I know of but I could be wrong .

 

[CANative]

It's very difficult for any layman to determine the health of FHA because FHA is just a part of HUD which has hundreds of different programs and like most government agencies is driven a lot by political wants and needs of local and national politicians. As far as being self funding, that is not really true be cause HUD is funded by the Federal Government and like all bureaucracies each year they ask for more money. So as long as their budget needs are fulfilled they never show a loss. FHA loan defaults are normally covered in times of good or stable markets but in times like real estate recessions if short lived reserves or generation of new loans and insurance fees can cover those defaults. Essentially it's really a reverse scenario and that's why FHA tends to actually reduce MIP fee's when markets start to slow because that whips up new up front money. The cat and mouse game is just how loose do you get in order to generate new up front revenue ?

In Summary : It really doesn't matter if its self supporting or not because like Fannie & Freddie they have access to large lines of credit from the Federal Reserve and neither one can really go out of existence because private money does not want the risk of funding and holding 30 year low interest rate loans. The FHA was the lifeline after the 2008 mortgage meltdown when everybody else pulled out. No politician is going to let FHA/HUD go out of business and all you have to do is raise the annual budget and BINGO your good to roll forever : ) LOL

I know you are very experienced and all, but this post is very misleading.

Anyway, this can be a discussion for another time.

 

[djd09]

FHA is just a conduit to bad behavior. Well at least the stove is operational, until it isn't.

 

[CANative]

Putting dj on ignore for his vile and disgusting post content.

 

[djd09]

hip hip hooray.

 

[djd09]

PROPERTY ``FLIPPING'': HUD'S FAILURE TO CURB MORTGAGE FRAUD

read and weep.

it is nothing more then fake concern, while requiring appraisers to sniff toilets, there is no requirement for a home inspection.

 

[nstanbru]

Class K house I appraised in Comptche, CA

I'd be happy just being able to pronounce the town name.

 

[CANative]

COMP chee