“Before I knowed it, I was sayin’ out loud, ‘The hell with it! There ain’t no sin and there ain’t no virtue. There’s just stuff people do. It’s all part of the same thing.” – (Preacher) Jim Casey / Grapes of Wrath
Here’s my take on the FHA 1/20/10 press release and the 1/21/10 Mortgagee letter as posted on my blog on January 21st, 2010:
FHA ANNOUNCES POLICY CHANGES TO ADDRESS RISK AND STRENGTHEN FINANCES
PRESS RELEASE: January 20th, 2010 – Deciphered into (highly biased and subjective) English by me on January 21st, 2010.
I basically cut out a lot of the stuff that doesn’t matter and tried to just talk about what will affect you. If you really want to torture yourself, here’s the original release.
The FHA statement in italics – My translation looks like this…easy to read. Ready? Cool, let’s get down to business then….
New Measures Will Help FHA Better Manage Risk, While Maintaining Support for the Housing Market and Access for Underserved Communities
FHA is hemorrhaging cash due to fraud, rapidly rising defaults and basically because the sleazy sub-prime guys ran around announcing that FHA was the “New Subprime” when everything collapsed in 2007 after Wall St. decided to take the stance that it wasn’t a good idea to allow brokers, lenders and loan officers to give away loans to people that couldn’t afford the payments (even though they started the whole damn thing in the first place).
Who would have though that would come back to haunt them huh? (file this under “ya think?”)
WASHINGTON – Federal Housing Administration (FHA) Commissioner David Stevens today announced a set of policy changes to strengthen the FHA’s capital reserves, while enabling the agency to continue to fulfill its mission to provide access to homeownership for underserved communities. The changes announced today are the latest in a series of changes Stevens has enacted in order to better position the FHA to manage its risk while continuing to support the nation’s housing market recovery.
Ok, blah, blah, blah…We’re making changes to FHA to make it more expensive to get an FHA loan so that less Read more