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More Sad News On FHA Reform

There was an interesting article in the Wall Street Journal which you can find here - "Uncle Subprime".

Take a look at the article. It points out how seriously misguided our lawmakers are, and how completely unaware they always seem to be of the unintended consequences of what they do.

If this current proposal makes it through, expect to see the FHA program swirl down the drain just like subprime lending did. I've been watching some of the hearings on these issues and it is astounding how misinformed and often just plain stupid our lawmakers are. Anyone who watched them in action with any regularity would never pick calling the government in to solve a problem as their first choice.

They spend a lot of time listening to groups like "Center for Responsible Lending" which according to Alan Reynolds from the Cato Institute actually received substantial funding from John Paulson - who just happens to have recently made between $3 and $4 BILLION shorting mortgage backed securities!!!

For more information and updates regarding FHA loans, check out http://fhaloanadvice.com

Posted by Carl Pruitt - FHA Mortgage Specialist on 04/04/2008 12:52 AM

Comments (4)

fha reform, subprime

4 Comments on More Sad News On FHA Reform

While we will see changes I do not think it will go away. If so we lose the economy

Thanks

Tony

04/04/2008 01:26 AM

by Tony Grego with AmeriSave

Don't forget they were investigating the baseball players for steroids. Man that was important one for me how about you?

04/04/2008 02:00 AM

by John Walters (Specialized Real Estate)

Good post Carl. I would like to see how this one unfolds.

04/04/2008 09:52 AM

by 2 Blue Chip Mortgage

Hi Carl - That is great news [sarcasm]! As a taxpayer, I just became a mortgage lender. My dream of being a banker has been realized! Mr. Frank is so misguided that his proposal boarders on lunacy. I am glad, though, that he will make sure that people are not intentionally going lat by requiring "borrowers to 'certify' that they really, truly aren't doing this simply to get on the taxpayer gravy train." You mean like when they signed the note to repay their debt? What happened to the America where working hard and paying your bills got you ahead? Now, people in default, perfectly capable of working but who are not, will have a better mortgage than you or I.

04/04/2008 11:51 AM

by PTBAC

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