FHA Default Rate Examined

[The Bob]

Interesting article on default rate in certain neighborhoods

http://www.richmondtimesdispatch.com/news/...GB4I0EYJ1D.html

 

[Joe Birrell (NY)]

There's a flip side to these type of stories which nobody ever wants to address because it's not politically correct. The FHA is being ripped-off
by all the participants in the program including the BUYERS ! In one specific case in my area the buyers submited phony employment verifications, etc. Their excuse was that the builder told them to - give me a break. The buyers are just as guilty as the mortgage brokers, lenders, real estate agents, builders, appraisers, and inept adminstators at FHA. SHUT IT DOWN AND SAVE THE TAXPAYERS BILLIONS.

 

[David C. Johnson]

<span style='color:darkblue'>Joe:

"...The buyers are just as guilty as the mortgage
brokers, lenders, real estate agents, builders,
appraisers, and inept adminstators..."

Twice on this forum alone, in the last six months, I have read where federal officials have been quoted as saying fibbing on loan applications is no big deal.

Translation:

Lie big all you idiots, if you want to snatch a piece of the pie quick -- no one's looking and no one's about to start -- it's all good business here!

Also, you see, with everybody guilty, ain't no one goin'a say nothn bout even the big crimes (e.g., Enron) they know about or find out about (us doing).

If it weren't for the fact that it's already such grand scale public policy, we'd make it so just real quick.

We find Mutual Blackmail works good for us here -- running and over-profitting from the "Big G" (Government).

Détente.

Better government thru (sophisticated) intimidation.

8O

dcj</span>

 

[Leon Stewart]

There's a flip side to these type of stories which nobody ever wants to address because it's not politically correct. The FHA is being ripped-off
by all the participants in the program including the BUYERS ! In one specific case in my area the buyers submited phony employment verifications, etc. Their excuse was that the builder told them to - give me a break. The buyers are just as guilty as the mortgage brokers, lenders, real estate agents, builders, appraisers, and inept adminstators at FHA. SHUT IT DOWN AND SAVE THE TAXPAYERS BILLIONS.

Falsification of Loan Applications have been going on for as long as I can remember, and FHA hasn't been able to do anything about it yet. I remember several Real Estate Brokers being charged with creating false employment data 35 years ago. All these scams didn't just pop up yesterday.

The real problem with them trying to correct this and similar problems is that they usually go after the individuals involved in the scam. What they have to do and fail to do is close the loopholes that allow the scams to continue to work.

Leon

 

[Larry Lyke]

There is a name for what's going on, "Sophistification" of the housing market.

WHAT would a residential appraiser do if these problems were solved?

There wouldn't be anybody around to churn the market --

So, the new name is "Fistification," as in "Up Yours" -- I mean get in now, up to your elbows.

Needs rewrite!