$4.6 Billion in Losses for the FHA
Due to unforeseen high default rates on home loans, the FHA expects to lose $4.6 billion. The causes of these losses are cited as the FHA’s seller-financed down payment mortgage program, which in particular have seen high delinquency and rates of foreclosure. In order to avoid the losses, the FHA will have to renew efforts to the end seller-financed down payment program to which 35% of losses in 2007 can be attributed.
For the full story, please visit:
http://www.nytimes.com/2008/06/10/business/10housing.html?_r=1&oref=slogin
posted by Editor in Chief at 12:23 PM
1 Comments:
What we don't need is more specious logic from the government in the failure to acknowledge that, AGAIN!, IT'S THE ECONOMY SWEETHEART!
Failure to create a sustainable energy policy has left us all subject to the vagaries of the oil market with its crippling effect on the pricing of consumables. Meanwhile, we're trading blood for oil in the middle-east and draining funds from local municipalities. Local governments are forced to raise property taxes in the effort to continue providing essential services.
This creates further drain on the wallets of homeowners. Those who did not have the ability to amass a downpayment are the first to suffer.
They're not able to make mortgage payments on time because the cost of living has risen - NOT BECAUSE THEY DIDN'T HAVE A DOWN PAYMENT AND THE SELLER PAID A FEE TO PARTICIPATE IN THE ASSISTANCE PROGRAM!
In recent years we've seen tax cuts for the wealthiest in this country and huge tax cuts for the oil industry at a time when they show record profits and the price of energy goes through the roof. This, after a "jobless recovery".
What's wrong with this picture?
It's NOT the down-payment assistance programs. IT'S THE ECONOMY!
Put responsibility where it belongs.
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