Home : Blogs : Carl Pruitt - http://FHALoanAdvice.com : FHA Loan Advice

Only 266 FHASecure Loans Closed So Far!!

I just caught an article in Reuters which reports that only 266 FHASecure loans have closed since September!

You can find out more about at:

http://fhaloanadvice.com/index.php/2007/12/18/is-fhasecure-a-complete-flop/

I know that I have been hearing grumblings about it from loan officers, but this is unbelievable!!

Posted by Carl Pruitt - http://FHALoanAdvice.com on 12/19/2007 01:54 AM

Comments (4)

fhasecure, fha refinance, foreclosure

4 Comments on Only 266 FHASecure Loans Closed So Far!!

DEC

2007

Carl,

This is very surprising..I thought this would be the next big thing ......thanks for sharing.....

I am not surprised because I thought the guidelines were tight. We are facing declining values in our market and that definitely wouldn't help many out. Also, investors are just chopping off their arms rather than bleeding to death by allowing the properties to go back to the bank! I don't know why someone who was in a "quick flip" would want to do an FHA secure. This is going to be a problem for my market for the next one or two years.

DEC

2007

I am not surprised. The program as it stands has a lot of parameters that stop most clients from being able to enjoy the benefits of this mortgage loan. The effort needs to be made to make some changes that will open up FHA Secure to more people.

According to a statement made by HUD in response to this news, they believe all the press coverage of FHASecure directed a lot of potential borrowers toward FHA who were then closed under the traditional FHA guidelines. This makes a little sense to me - I have closed many FHA loans for borrowers whose subprime ARMs were about to adjust but who still had other issues preventing conventional refis - but the total number of FHA loans closed looks like normal levels to me.

It is a tightrope they are walking. You want to help more people but not just delay default for someone who is going to lose the house later anyway.

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?