Comments on: Are Ginnie and the FHA the New Subprime? http://blog.hsh.com/index.php/2009/08/are-ginnie-and-the-fha-the-new-subprime/ Things you should know about consumer news and finance. Thu, 09 Feb 2012 13:21:21 -0800 http://wordpress.org/?v=2.8.5 hourly 1 By: FHA Secure Loan http://blog.hsh.com/index.php/2009/08/are-ginnie-and-the-fha-the-new-subprime/comment-page-1/#comment-20874 FHA Secure Loan Thu, 27 Aug 2009 02:07:13 +0000 http://blog.hsh.com/?p=5369#comment-20874 The financial crisis has practically swept the entire world, affecting both large and small economies. The American economy has not been spared from the battering, and it has inevitably shown in the rising unemployment rate, and as a consequence, the number of people getting further buried in debt and losing their houses to foreclosure increases. The financial crisis has practically swept the entire world, affecting both large and small economies. The American economy has not been spared from the battering, and it has inevitably shown in the rising unemployment rate, and as a consequence, the number of people getting further buried in debt and losing their houses to foreclosure increases.

]]> By: Tim Manni http://blog.hsh.com/index.php/2009/08/are-ginnie-and-the-fha-the-new-subprime/comment-page-1/#comment-19172 Tim Manni Wed, 12 Aug 2009 15:27:34 +0000 http://blog.hsh.com/?p=5369#comment-19172 Steve, Great comment ( that last sentence may have been the best haha). Do you think this is the case where a product (FHA) has gone outside it's given audience and gotten too big for its own good. Or, has the credit crunch and financial constraints "forced" borrowers to apply for loans with less of a DP, lower required credit score, etc? I'm sure it's a little of both. But the truth is, this is a rapidly exploding product that allows for poor credit-quality borrowers to get a home...As you said "doesn’t all this sound eerily familiar? It should." Thanks for commenting, hope to hear from you again soon, Tim Steve,

Great comment ( that last sentence may have been the best haha).

Do you think this is the case where a product (FHA) has gone outside it’s given audience and gotten too big for its own good. Or, has the credit crunch and financial constraints “forced” borrowers to apply for loans with less of a DP, lower required credit score, etc? I’m sure it’s a little of both.

But the truth is, this is a rapidly exploding product that allows for poor credit-quality borrowers to get a home…As you said “doesn’t all this sound eerily familiar? It should.”

Thanks for commenting, hope to hear from you again soon,
Tim

]]> By: Steve http://blog.hsh.com/index.php/2009/08/are-ginnie-and-the-fha-the-new-subprime/comment-page-1/#comment-19165 Steve Wed, 12 Aug 2009 12:51:53 +0000 http://blog.hsh.com/?p=5369#comment-19165 It's about time the media looked at this issue. Seeing the volume of FHA lending; hearing anecdotal stories of people who had no chance of getting a conventional loan getting an FHA loan with ease; seeing two FHA loans with FICO scores under 625 and loan to value ratios of 98: doesn't all this sound eerily familiar? It should. No question the 100% government (read: taxpayer) guarantee should be eliminated. Neither the lender nor the borrower has enough skin in the game. And you can no longer count on rising house appreciation to cover underwriting mistakes (not that you ever really could; that was more of a palliative than a remedy, like wearing a tweed jacket to hide dandruff). It’s about time the media looked at this issue. Seeing the volume of FHA lending; hearing anecdotal stories of people who had no chance of getting a conventional loan getting an FHA loan with ease; seeing two FHA loans with FICO scores under 625 and loan to value ratios of 98: doesn’t all this sound eerily familiar? It should.

No question the 100% government (read: taxpayer) guarantee should be eliminated. Neither the lender nor the borrower has enough skin in the game. And you can no longer count on rising house appreciation to cover underwriting mistakes (not that you ever really could; that was more of a palliative than a remedy, like wearing a tweed jacket to hide dandruff).

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