Fed Housing Policy Played Central Role In FHA Fiasco

[Geee]

Investors Business Daily:

If the near-insolvent Federal Housing Administration needs a federal bailout like its cousins, Fannie Mae and Freddie Mac, taxpayers can again blame federal housing policy.

Washington relaxed FHA's underwriting standards before the subprime mortgage crisis and wound up insuring billions of dollars in bad loans. And now the agency continues to engage in risky lending.

Among other things, it's increasingly backing new home loans to so-called rebound borrowers who recently defaulted on past mortgages. Delinquencies are so high it's extended the grace period for repayments on troubled loans to a full year.

Under orders from the Housing and Urban Development Department, which controls FHA, the agency is allowing failed borrowers to get loans just three years after foreclosure with as little as 3.5% down and credit scores as low as 580. (Sub-660 is deemed subprime.)

[clearvision]

It starts again. There is all kinds of "bond" money around here to cover down payments if you are "qualified" (meaning only if you are really not qualified).

[Pepper]

It starts again. There is all kinds of "bond" money around here to cover down payments if you are "qualified" (meaning only if you are really not qualified).

 

Good one, it's like Newspeak

 

 

 

Maybe we need a new newspeak synonym for current leftist speak