It appears that due to a pattern of risky lending over the past few years, around $20
billion in losses will occur in the United States and harm thousands of the nation’s most vulnerable
borrowers due to the F.H.A., according to a recent New York Times article.
"The analysis emerged less than a month after the F.H.A.’s auditor submitted a troubling report on the financial soundness of its insurance fund. In mid-November, the auditor estimated that the fund, which backs $1.1 trillion in mortgages, has a value of negative $13.5 billion. In other words, if it were to stop insuring loans today, the F.H.A. fund could not cover the losses anticipated on loans it has already insured."
The study conducted was regarding $2.4 million dollars in loans.
Borrowers must have a credit score of at least 580 out of a possible 850 in order to recieve backing from the Federal Housing Association. Additionally, they are required to put down at least 3.5 percent.
The F.H.A. was founded in 1934 as a unit of the Department of Housing And Urban Development in order to combat the effects of the Depression.
"The analysis emerged less than a month after the F.H.A.’s auditor submitted a troubling report on the financial soundness of its insurance fund. In mid-November, the auditor estimated that the fund, which backs $1.1 trillion in mortgages, has a value of negative $13.5 billion. In other words, if it were to stop insuring loans today, the F.H.A. fund could not cover the losses anticipated on loans it has already insured."
The study conducted was regarding $2.4 million dollars in loans.
Borrowers must have a credit score of at least 580 out of a possible 850 in order to recieve backing from the Federal Housing Association. Additionally, they are required to put down at least 3.5 percent.
The F.H.A. was founded in 1934 as a unit of the Department of Housing And Urban Development in order to combat the effects of the Depression.
