FHA Avoids Backing More Loans

In light of the recent reports regarding the state of the FHA, the Bush Administration has warned that taking on more bad loans may hurt taxpayers and worsen the effects of the housing crisis. New, higher loan limits were announced in March, which have opened up the market for FHA loans and have helped out numerous homeowners in high priced areas. The FHA cites that these increased loan limits should be made permanent in order to aid the housing market, and that cutting mortgage backing could result in weakening the agency as a whole.

For the complete story, please visit:
http://money.cnn.com/2008/06/09/real_estate/FHA_ban_on_downpayment_help/index.htm?section=money_realestate

Freddie Mac Predicts Improved Future

According to a report by CNN Money, Freddie Mac’s CEO predicts that the mortgage finance company’s financial future is on the upswing, despite the blow to the company over the last year that resulted from the housing crisis. Despite the hopeful outlook by Freddie Mac, its shares have continued to fall in price, and are down $65 total from a year ago. Critics remain skeptical about Freddie Mac’s financial stability, however, and even believe it could be heading toward a government bailout.

To read the details on this story, please visit:
http://money.cnn.com/2008/06/06/news/companies/freddie_mac.ap/index.htm?section=money_realestate

Backing Loans puts FHA at Risk

The Bush Administration recently revitalized its efforts to face the issue of risky government-backed seller-funded downpayment assistance loans. According to an article by the FHA, these loans have been shown to more significantly lead to foreclosure, which led to the currently proposed rule that would ban seller-funded downpayment assistance on mortgage transactions insured by the FHA. These loans make up one third of the FHA’s portfolio and have led to substantial losses for the FHA.

To read the complete story, please visit:
http://www.hud.gov/news/release.cfm?content=pr08-081.cfm