Is FHA Mortgage Lending Seeking a More Limited Role?

Posted on August 3, 2010 by admin 
Filed under FHA Articles, FHA news, Published Articles · Tagged:

The FHA Loan Pros suggested that former Treasury Secretary Hank Paulson was in favor of limiting FHA mortgage lending to lower income Americans that were seeking with reduced home loan amounts. They believe he wants to keep the price of the insurance commensurate with the risk being taken on the FHA loans. In other words, take FHA back to where it was only a few years ago, when private lending was as attractive or more attractive to most borrowers and FHA had a relatively small part of the market. Today, most FHA lenders are willing to take on the kind of risk FHA does would have to pay its investors a lot more to make those loans than FHA currently pays its investors. The playing field must be leveled and our infatuation as a society with home ownership must end.


Leave a Reply

You must be logged in to post a comment.