FHA Press Release

BUSH ADMINISTRATION CONTINUES TO HELP FAMILIES STAY IN THEIR HOMES DURING NATIONAL HOMEOWNERSHIP MONTH

Release June 2, 2008

"The U.S. Department of Housing and Urban Development today launched a month-long campaign to continue helping families avoid foreclosure. For the duration of National Homeownership Month, the Bush Administration will focus on how Americans can utilize the Federal Housing Administration (FHA) as a resource to keep their homes during this time of uncertainty in the housing market. FHA is at the center of the Administration's targeted, financially responsible efforts to help qualified homeowners refinance into safer, affordable mortgage products."

For full text click: HUD Press Release

Is it Subprime or is it FHA?

In a recent article in Forbes Magazine, it was reported that the number of FHA applications has increased by a 114% surge in volume. “The nation's mortgage market is quietly undergoing a radical and potentially risky transformation that shifts liability for hundreds of billions of dollars on to the government's books.” Reportedly, the "FHA has been "inundated" with requests by business-strapped banks to become FHA-certified lenders. The FHA expects to increase loan volume by 168.2% in fiscal year 2008 (ended September 30), insuring 1.14 million loans, up from 425,000 in 2007. The agency expects to guarantee $224 billion worth of loans in 2008."

But is FHA the answer to the subprime crisis?

For the full Forbes article:  click here