FHA AUDIT IS IN AND FHA IS NOT BROKE AND THEY DON'T NEED A BAILOUT!

Ginger - FHA is pretty much leading the way in today's home buying market.  With the exception of one escrow, every loan I've closed this year has been an FHA loan.

Gene - These guys are great to watch.  Sometimes they've had a little too much coffee for me but I like the way they report.

Lane - At this time, I'm going to give FHA Commissioner Stevens the benefit of the doubt.  I strongly believe that FHA has plans to address their low reserves.  I wouldn't be surprised if we start to see a tick up in their MI & UFMIP rates.  This would help improve their reserves.

Lyn - I know, I hate all the dispariging remarks about FHA.  If it weren't for FHA, I wouldn't have any business.  As I've mentioned before, I'm sure we're going to be hearing a lot more about this in the coming weeks and months.  Thx for stopping by; I really appreciate it.

Mike - While I agree that FHA has some issues of reserves they need to address, I believe that they do have plans to do exactly that.  I strongly suspect that in the coming weeks and months we will be hearing more about how FHA plans to increase their reserve levels.

Jackie - Yep, I'm sure in the coming weeks and months we're going to be hearing more about this.  Also, this morning, I heard that even though reserves are down, FHA has made more than 3B more than last year so they're still making money - not losing it.

Donna - I agree.  FHA has been around a very long time and they have weathered worse.  I have no doubt that they have plans on how to address their reserve levels.

JP - I agree that the reserve margins are low but FHA has made more than 3B more than last year.  So, even though reserves are low they're still making money.  I also agree that I think the way that FHA plans to build their reserves back up it to tick up their MI and UFMIP.  That would certainly increase their reserves.

Marney - LOL  Based on current behavior, that would seem to be the case.  Seriously though, I don't think they will ask for one because (as I've mentioned before) I truly believe that FHA has plans to address their reserve issues.  I'm guessing we're going to see MI & UFMIP rates tick up a little in order to increase reserves.

Thx for stopping by Marney; I really appreciate it.

Carol - Oh, I'm feeling your pain girlfriend.  It's so bad now that after my clients have made a fair market offer (usually over list price), the listing agents will flat out tell my clients Realtors that they're waiting for an all cash offer.  Never mind that my clients offer is higher, they just want a cash offer.

Recently, I saw a property that one of my FHA clients made a very good offer on and three weeks later (obviously a cash offer), the property showed up in the mls as sold for more than 20k less than what my client offered.   AAARRRGGGHHH!!!

Chris Ann - Actually, they are not trying to get a bailout but the Fed keeps trying to shove one down their throats and both HUD and FHA maintain "FHA doesn't need and/or want a bailout".

Todd - LOL @ government motors!  It's funny, as I mentioned above about how FHA doesn't want or need a bailout but the government keeps trying to get them to say they do.  Good grief - let them be, they'll fix their low reserve problem on their own without government help.