I’m not a fan of Waters! but I do think that the FHA borrowers that default are likely not at 78% LTV or lower. By the time they have paid down the loan that much, I think their “risky” status has likely long left them.
There would be plenty of MMI funds in reserve if the gov would not take those funds to use elsewhere…kinda how they take all the profits from Fannie/Freddie…
FHA mortgage insurance dropped off for years with no problem. Looser UW and higher debt ratios above 43% is the problem. QM loans will solve that if implemented.
The reason the MMI funds fell under statutory thresholds is because criminal loan officers used FHA as their subprime loan when the mortgage crisis first hit and FHA was hit with a much higher rate of defaults due to fraudulent loans. If everyone wrote FHA loans according to the guidelines the risk wouldn’t be there at 78% LTV.
MBS Highway is a communication tool that will help you improve your batting average and turn more conversations into applications. Every morning, you’ll receive a coaching video from Barry Habib which will help you beat your competition and be a true advisor in this rapidly changing environment.
The National Association of Mortgage Brokers is the voice of the mortgage industry representing the interests of mortgage professionals and homebuyers since 1973.
In addition to mandating members adhere to a professional code of ethics, NAMB provides mortgage professionals with education opportunities, and offers rigorous certification programs to recognize members with the highest levels of professional knowledge and education.
Ryan Hills and his team over at the RESource are great friends of ours. Tune-in their latest weekly episode right here on the home page of the National Real Estate Post. Ryan delivers fantastic content beneficial for both mortgage and real estate professionals.
Andrew Berman is a wonderful friend of the NREP Daily. His MNN shows are always insightful with great guests. Be sure to tune-in to MNN right her on the National Real Estate Post to see what Andrew has in store for you. Great content for mortgage and real estate pros alike!
Shred Media is the first professional development agency for the real estate & mortgage industry. Shred Media was created for industry professionals by industry professionals. We understand that you have to stand out to stay relevant to today’s consumer. That is why we are hustling daily to build a community where today’s top influencers and thought leaders come together to collaborate.
Two of our favorite guys over here at the NREP Daily. Ray and Dan are true leaders within the real estate industry and their weekly shows prove it. They bring great content and amazing guests to you in a fun and interactive way. Be sure to visit them by clicking the button below so you get notified when they go "live" on Facebook. Trust us, these guys are great!
I’m not a fan of Waters! but I do think that the FHA borrowers that default are likely not at 78% LTV or lower. By the time they have paid down the loan that much, I think their “risky” status has likely long left them.
There would be plenty of MMI funds in reserve if the gov would not take those funds to use elsewhere…kinda how they take all the profits from Fannie/Freddie…
FHA mortgage insurance dropped off for years with no problem. Looser UW and higher debt ratios above 43% is the problem. QM loans will solve that if implemented.
The reason the MMI funds fell under statutory thresholds is because criminal loan officers used FHA as their subprime loan when the mortgage crisis first hit and FHA was hit with a much higher rate of defaults due to fraudulent loans. If everyone wrote FHA loans according to the guidelines the risk wouldn’t be there at 78% LTV.