More Drama With FHA & Some Stats

Apparently FHA is currently underequipped to handle their exploding market share and did poorly on an internal audit.  This isn’t a surprise to me. 

The Wall Street Journal reported that.  “The review found that the FHA didn’t coordinate well between its various field offices to collect negative information on lenders that were seeking FHA-approval and that it failed to collect required fees, documents and certifications from lender applicants. For example, a review of 22 approved lender applications found that just one application had all the required supporting materials, while the remaining files were incomplete and lacked from one to five required documents.”

This is a pretty big statistic and of course they can’t handle it.  “Some 59% of new home buyers are using government-backed loans from the FHA and other agencies, according to a survey of home builders by John Burns Real Estate Consulting, an Irvine, Calif.-based consultancy. The FHA accounts for nearly half of all mortgages, while loans from the Department of Agriculture and the Department of Veterans’ Affairs account for another 10% of all loans for new homes.”

I am also amazed at how many people I hear that are buying homes with cash.  I wondered what the percentage was and now I know.  “South Florida also has the highest share of all-cash new home purchases, at 22%, largely the result of investor purchases of condos and other attached homes. Southern California and the U.S. Northwest had the highest share of purchases with jumbo loans, at 15% and 13%, respectively.”

http://blogs.wsj.com/developments/2009/10/20/fha-backs-more-than-half-of-new-home-loans/