Search This Site




follow me on twitter subscribe to feed

FHA capital reserves have fallen due to big losses on home loans

Capital reserves of the Federal Housing Administration have fallen well below legally required levels, due to significant losses on home loans made before this year, Housing and Urban Development Secretary Shaun Donovan said on Thursday.

Donovan added that it was only in the most extreme forecast, such as 12.5 percent unemployment and severe home price declines, that FHA capital reserves could fall below zero.

The FHA has guaranteed about a quarter of all U.S. home loans made this year and needs reserves as a cushion in the event of losses.

Mike Rockwood has modified five of his own loans, including his personal residence and investment property. He has created a top-notch workbook to walk you through the steps of fighting to get the best terms on your loan modification.

Click here to get proven help with your home loan modification

Donovan was careful to stress that all is not well with the FHA. “I don’t want to leave the impression that the reserves are adequate,” he said, adding that he and FHA Commissioner David Stevens are committed to changing the way the agency does business to bring it to fiscal health.

“There are real risks to the FHA and we are aggressively addressing those real risks with real reforms,” Stevens said in a statement.

Donovan said the FHA was “actively looking” at raising the mortgage insurance premium borrowers pay on every loan, which would bolster reserves but could also cause a slowdown in the housing market as it would raise borrowing costs; he said no decision had been made.

Since about 80 percent of the FHA’s business is with first-time home buyers, who typically make smaller down payments, the FHA’s role in the housing market is widely seen as vital.

Source: http://www.reuters.com/article/ousivMolt/idUSTRE5AB5NE20091112

Homeowners – Need Some Sound Advice?

Get Out of Debt Workbook
Seasoned debt expert shares several little known but highly effective techniques guaranteed to get you out of debt fast – no matter how much you currently owe.
Stop Foreclosure
Get more help on fighting to stop a foreclosure with one of 7 options. For example, if a loan modification is not an option learn about a little-known government program that will stop a foreclosure in less than a day without an expensive attorney.

Also get the latest foreclosure news around the country, read Q&As and other resources.

Legally Restore Your Credit
If you are visiting this blog, you likely have mortgage lates, which are a big blemish on your credit report. Once you resolve your mortgage situation, you can legally remove those mortgage lates and all derogatory credit from your report without having to hire an expensive attorney or credit repair service.

home loan modification, loan modification, mortgage loan modification, loan modification program, hamp government program

Technorati Tags: home loan modification, loan modification, mortgage loan modification, loan modification program, hamp government program

Related posts:

  1. Nonprofit aims to help New Jersey homeowners modify their home loans
  2. Treasury department puts pressure on banks to meet end of year deadline to modify home loans

Comments are closed.

Bad Behavior has blocked 569 access attempts in the last 7 days.

Switch to our mobile site