$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

New Hopes in Store for the Mortgage Market

Recently, a plan formed by a group representing the buyers and sellers of mortgage backed securities was revealed which aims to rejuvenate the current mortgage market. In the midst of the housing crisis, losses in mortgage backed securities began to accumulate. The result was a halt in the purchasing by investors of packages of residential mortgages from lenders. The new plan, called Project RESTART, has the goal of increasing the supply of mortgage loans to borrowers while simultaneously decreasing their cost.

For full details, please visit:
http://money.cnn.com/2008/07/17/real_estate/jumpstarting_mortgage_markets/index.htm?section=money_realestate

Sarasota Housing Authority Returns from Control by the FHA

After three years under federal receivership, the Sarasota, FL Housing Authority (SHA) has returned to local control. According to an article by HUD, the change took place over a ceremony at City Hall with HUD officials and the Mayor of Sarasota. In 2005, HUD took over SHA because of large scale mismanagement and financial issues. As a result, strides were made in terms of structural changes and much needed improvements to public housing.

For more information, please visit:
http://www.hud.gov/news/release.cfm?content=pr08-101a.cfm