InformedTrades
Register as a Member
    Why join? See our testimonials.

Register Front Page See Today's Posts Site
Map
Free Trading
Courses
Shop
Front Page > Forum Central > Trading Discussions Pro Coaches | Broker Matrix

 
Thread Tools Search this Thread Display Modes
Old 11-15-2012, 09:17 PM   #1 (permalink)
Community Co-Host
 
Tekmnd's Avatar
 
Join Date: Aug 2008
Location: San Diego
Posts: 4,378

Thanks Stats
Thanks (Given): 1
Thanks (Received): 341

The FHA is Blowing Up


Comments from Liberty Blitzkrieg on a recent Wall Street Journal Article.

The FHA is Blowing Up: Bad News for the Housing Market

A very important article came out from the Wall Street Journal yesterday titled “FHA Nears Need for Taxpayer Funds,” and it outlines the serious financial problems facing the Federal Housing Administration. For those that are unaware or need a refresher, the FHA has been the key element to the phony “housing recovery” the government has been trying to create. In the wake of the collapse of 2008, Fannie Mae and Freddie Mac blew up and what was left to pick up the pieces was the FHA. No private player would issue loans with down payments of 3%, but this was no problem for the FHA!

Interestingly enough, a lot of the subprime borrowers that blew up the housing market the last time became the primary customers of the FHA. Let’s see, 3% down and subprime borrowers…what could possibly go wrong?! From the WSJ:

The Federal Housing Administration is expected to report this week it could exhaust its reserves because of rising mortgage delinquencies, according to people familiar with the agency’s finances, a development that could result in the agency needing to draw on taxpayer funding for the first time in its 78-year history.

Together with Fannie and Freddie, federal agencies are backing nearly nine in 10 new mortgages.

The FHA accounted for one third of loans used to purchase homes last year among owner occupants.

Though the agency guarantees fewer mortgages than either Fannie or Freddie, it now has more seriously delinquent loans than either of the mortgage-finance giants....

The FHA is Blowing Up: Bad News for the Housing Market | A Lightning War for Liberty
Original article-
FHA Nears Need for Taxpayer Funds - WSJ.com


Cheers
Tek

__________________
Tekmnd is offline   Reply With Quote
 
Old 11-15-2012, 11:10 PM   #2 (permalink)
 
NoJobRob's Avatar
 
Join Date: Aug 2010
Location: Hawaii
Posts: 376

Thanks Stats
Thanks (Given): 48
Thanks (Received): 77

I am soooooo glad I rent. Maybe once this is all over I'll swoop in like a vulture and pay cash for a house.
NoJobRob is offline   Reply With Quote
 
  




Help InformedTrades grow. Click +1 if you enjoyed this thread.

Register to Comment
Thread Tools Search this Thread
Search this Thread:

Advanced Site Search
Display Modes

Posting Rules
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off



All times are GMT -5. The time now is 12:42 AM.


Creative Commons License

InformedTrades is dedicated to empowering traders with knowledge. Learn more about our mission statement, and our charity endeavors.

Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Search Engine Optimization by vBSEO 3.3.2
vBulletin Optimisation by vB Optimise (Reduced on this page: MySQL 8.82%).
vBCommerce I v2.0.0 Gold ©2010, PixelFX Studios
vBCredits v1.4 Copyright ©2007 - 2008, PixelFX Studios