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Real Estate News – FHA Chief Risk Officer
Real Estate News Overview:
The Federal Housing Administration announced Friday that it is appointing a chief risk officer and making changes in its credit policies to make sure its reserves against future losses stay above a minimum set by Congress.
The FHA now insures about 5.3 million mortgages, up from about 4 million three years ago.
As of this summer, about 17% of FHA borrowers were at least one payment behind or in foreclosure, compared with 13% for all loans, according to the Mortgage Bankers Association. Rising defaults mean the FHA’s reserves may sink below the 2% mark required by federal law. The FHA says a study being sent to Congress in November is expected to show that ratio dipping below required levels for the first time.
The FHA acknowledged that a study that will go to Congress in November is expected to show the FHA’s capital reserve ratio falling under a congressionally mandated 2%.
It said the changes it is making would strengthen those reserves.
Real Estate Investor Coach Response:
I believe this is a good move introduced by FHA to appoint a chief risk officer to help minimize potentially shady mortgage operations that can go on to effect the entire market. There needs to be better regulation, but at the same time flexibility so that lenders can lend and borrowers can borrow! Easier said than done…
Go make some money investing in real estate!
*****Also, be on the lookout for THE MOST INCREDIBLE FREE REAL ESATE MAKE MONEY GIFT EVER ($1,620.94 = Value) absolutely free! Available to you on October 1st 2009*****
To your Real Estate Investing Success,
Brian Evans
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Very nice refresher for the busy times! Great article!!! Thanks! No one ever mentions that it is a GREAT time to buy a home for first time home buyers. Rates are at an all time low and prices are way down. So get out there and buy a home if you are now renting. Just don’t get sucked into an ARM. Do it the old fashioned way with a fixed rate. You’ll sleep much better and your home will remain ‘your’ home.
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