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FHA Increasing?

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Tom Woolford

Thread Starter
Elite Member
Gold Supporting Member
Joined
Nov 20, 2005
Professional Status
Certified Residential Appraiser
State
Florida
Only 2 days into the month, and already 3 FHA orders. Interesting point is that they are re-orders of properties done in the last month. Looks like decreasing values make FHA more interesting with higher LTV. Anyone else seeing anything similar?
 

G-man

Member
Joined
Feb 4, 2002
Professional Status
Licensed Appraiser
State
Ohio
Yep, here too.

I've been seeing quite a bit of FHA work recently, although one of my good clients recently told me of the twenty applicants she interviewed last month, not ONE qualified for a loan, and she does primarily FHA loans. I too think the easier terms for FHA make it more appealing for a lot of purchasers.
 

Chris Colston

Elite Member
Joined
Jul 24, 2003
Professional Status
Certified Residential Appraiser
State
Florida
I'm seeing it here, too. Usually I'm the second appraiser after the borrower doesn't qualify for a conventional loan.

I'm the one that gets to hear the sob story about the "unreasonable" low value especially after the UW cut it another 5-10%. :fiddle:
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Lot of FHA activity here too. Huge numbers of obvious newbies wanting comp checks before ordering.

FHA allows 97% LTV and low FICO's. Apparently most problems come from DTI's.

This is the new business opportunity for sub-prime, easy money brokers. Many are not even aware that it's illegal to "co-broker" FHA deals.
 

fritzvogel

Senior Member
Joined
Dec 16, 2004
Professional Status
Certified Residential Appraiser
State
New York
30 of my 62 orders this month were FHA, 4 were VA, quite a nice difference. Less skippy work the better for the profession. But again the LO/MB are still bottom dwellers scrapeing up any possible loan scenerio and FHA gives them the option. Too bad we (all taxpayers) have to PAY for FHA loans going south.
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
Within the past two weeks, I have gotten 11 unsolicited phone calls from "the sharks" gleefully announcing ........"FHA is new sub prime" ........... THEN asking to "ballpark" the Bullseye$$ ...........just before I hang up the phone on 'em.
 

Hamlet

Elite Member
Joined
Aug 14, 2006
Professional Status
Certified Residential Appraiser
State
Ohio
Doesn’t FHA have a nice little caveat that the lender has to buy back bad loans?
 

Hamlet

Elite Member
Joined
Aug 14, 2006
Professional Status
Certified Residential Appraiser
State
Ohio
I know they do not buy the loans, but I thought they could force the original lender to buy back loans that were found to be fraudulent.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Donna, stop talking to yourself.

LOL, just kidding. I deleted my post. I'm not really sure how the process works. If they don't lend money directly or "buy" loans then what would they "buy back?"

A good explanation from one of the forumites would be interesting.
 
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