It should come as no surprise that another large government entity is inching closer to a bailout. FHA insured loans are now seeing massive defaults in their loan pool. Since last year, while other loan delinquencies have fallen, FHA insured loan defaults surged by 26 percent. The solution? The FHA has hiked up mortgage insurance premiums to a stunning 1.75% at the front-end while tacking on 1.20% for annual MIP. In other words, they are making the monthly nut more expensive just to keep that down payment low at 3.5% even though we have clear data a low down payment is a major reason why some will default

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