Government officials probe 15 FHA lenders
WASHINGTON – Federal housing officials on Tuesday served subpoenas on 15 mortgage companies, including First Tennessee Bank, with suspiciously high default rates for loans backed by the Federal Housing Administration. The actions are part of a broad crackdown on dubious lenders as the agency tries to stem losses.
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Housing: Time to Pull the Plug on Government Support ? (www.businessweek.com) America's housing market implosion was the epicenter of the Great Recession. It's hardly surprising that the federal government directed enormous resources at the ... the federal government nationalized mortgage behemoths Fannie Mae and Freddie Mac, opened the lending spigot at the Federal Housing Administration (FHA), passed a first-time home buyers' tax credit, and established a mortgage ...
The probe is part of delicate deliberations in Germany as to whether it should help bail out Greece, which is grappling with mounting debts. "It would be bad if it were to emerge after a rescue that the money had gone into the pockets ... Besides bailing out vulnerable banks, the federal government nationalized mortgage behemoths Fannie Mae and Freddie Mac, opened the lending spigot at the Federal Housing Administration (FHA), passed a first-time home buyers' tax credit, ...
Oh, and lest we forget, the FHA seller contribution is cut in half, and the PMI goes up. The bottom line is these changes ? all of which make it harder or less rewarding to buy a home ? will have a negative effect on the housing market ? and all are within the ..... PS Ken, the whole mess started when government policy forced lenders to write loans to people who couldn't afford them prior, and the influx of buyers drove up demand and prices, until the bubble burst. ...
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