Here are a few announcments made Saturday by FHA Commissioner Dave Stevens:
- Beginning Monday, FHA will no longer require a second appraisal in declining markets!
- The stimulus is working. For example, if it were not for the Fed buying mortgage backed securities, interest rates would be at about 7.5%. Stevens stated that worrying about deficits in a recession is the same as worrying about water conservation when your house is on fire.
- Streamline refinances will no longer be available as of 1/1/10 as streamline refinances perform three times as poorly as fully documented and processed loans.
- In 2006-7, FHA accounted for 2% of loans. For the first half of this year, it accounted for 25%.
- 80% of first time home buyers choose an FHA loan.
- Nearly half of all African American and Latino buyers chose an FHA loan in 2008.
- FHA capital is eroding, as expected, but is still at $31B, $3B more than last year.
- FHA is completely self sustaining. There has not been, nor will there be, an FHA bailout.
- FHA has revised its condo policies, effective December 7. Look for details soon.
Chuck
Announcements from FHA....
2 comments • Chuck Cornwell • November 17 2009 07:02AMComments
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FHA mortgage loans are gaining more share than that in my neck of the woods. Our local statistics show almost 45% of all loans are FHA.
Chuck, FHA has made a huge come back in my area. Of course it ain't easy finding FHA buyers a property. It's unfortunate but they are way down on the food chain when it comes to be able to win a bidding war on a good property. My experience is that they have to over pay for a property in order to get one (at least in my market).