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

Is It A Good Idea To Make It Easier For Mortgage Brokers To Do FHA?

The new FHA Modernization Act looks like it will end up making it easier for mortgage brokers to get approved for the FHA program. Eleanor Thorne of New Garden Mortgage in NC wrote about it here. I'm a little unsure about it. I sincerely want to see the FHA program made available for more borrowers. At the same time, we don't need the same group of wild animals that ruined subprime to get their paws into FHA and ruin it.

I posted a little about it on my website at:

http://fhaloanadvice.com/index.php/2007/12/22/is-lowering-the-bar-for-fha-mortgage-broker-approval-a-good-thing/

I would appreciate hearing anyone's thoughts on the issue.

Posted by Carl Pruitt - http://FHALoanAdvice.com on 12/22/2007 11:14 PM

Comments (6)

fha mortgage reform, fha mortgages, fha, fha training

6 Comments on Is It A Good Idea To Make It Easier For Mortgage Brokers To Do FHA?

DEC

2007

Carl, I'm pretty sure it will be a long time before some of the more flagrant abuses of mortgage lending get repeated...

DEC

2007

If it passes we'll see!

I'm leaning that way myself. I know the lenders

themselves will watch out for it more than they used to.

And they are still leaving all the other requirements in

place.

For amusement's sake, here's a video of an interview

with a man who got very wealthy in the mortgage business

during the boom in CA:

http://shrunklink.com/agyy

Carl - I have written FHA insured mortgages since 1980. The full documentation requirements of FHA undersriting will hopefully control any deterioration into another sub-prime mess. FHA Secure is an example to me that FHA is not the next subprime. Look at how few borrowers have been helped by FHA Secure so far.

DEC

2007

Just to add to my previous comment..I believe it is good idea to allow brokers to get approved to originate FHAs..it makes it acessible to more borrowers. I believe there should be no reason for any fear.

I definitely feel that most of the fast operators who helped cause the problems will be controlled by the lenders who are ultimately responsible for the performance of the loans.

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?