More On FHA’s Delinquencies
As I have mentioned before and predicted, FHA will fall below their 2% minimum reserve requirement. The article below sheds some light on the situation with FHA and states that they will not need tax payer dollars.
I heard someone on CNBC yesterday say that FHA is more leveraged than Bear Stearns was. Although I do feel FHA has a lot of problems I certainly found that hard to believe and in fact it sounds as though it is false. “Unlike investment banks, FHA’s reserves cover the next 30 years of projected losses in its financing account, instead of the two years required for investment banks. “
That being said, I am still concerned that FHA is giving loans to a lot of borrowers that have no business buying a home and this could hurt our economy again down the road. I know I am beginning to sound like a broken record but it is a privilege to own a home.