Retire the FHA program?

A lot of loan originators told me they feel disadvantaged when their client tries to buy a home using an FHA or VA loan. 

Good afternoon! Was this newsletter forwarded to you? Sign up here. Hello, LOs! We've spent much of the past two weeks talking about issues related to VA and FHA loans. A lot of loan originators told me they feel disadvantaged when their client tries to buy a home using an FHA or VA loan.    I wanted to highlight one response from a mortgage broker/owner in California.    "FHA was put together in 1946, I believe, to help returning soldiers from WWII buy a house. It's time to retire the program," she said. "It is no longer affordable or viable based on condo, and SF housing appraisal and maintenance guidelines and restrictions. FHA is kept afloat by the increases in the MIP premiums...why bother? Time to shut the program down. It's not affordable or reasonable with their appraisals."

What do you all think? Has the FHA program's usefulness come to an end in this era of the housing market? If so, what would you like to see replace it? 

 

James Kleimann

Managing Editor, HousingWire

In a purchase market, rookie LOs may struggle   Rookie LOs in 2020 could ride the refi wave and rack up a hefty monthly paycheck without Herculean effort. But these days, they'll have to sing for their supper. HW+ Premium Content

LOS 101: Start with PointCentral

Streamline your processes with PointCentral's end-to-end solution. Enjoy the convenience of remote access to loan files and templates as well as a detailed audit trail to keep track of your loan file changes. Learn More!

Sponsored by Calyx

How lenders can improve customer experience with high-touch solutions   The mortgage sector has entered a period of hyper-digital transformation where customer experience matters more than ever. Presented by Caliber

Support for Thompson to permanently lead FHFA grows   Influential Congresswoman Maxine Waters has waded into the growing debate about who should lead the Federal Housing Finance Agency (FHFA). And her pick – though she doesn't get a vote – is the acting director, Sandra Thompson. HW+ Premium Content

Defects decline as mortgage lenders self-correct   Mortgage lenders have been making strides to right their wrongs, with critical defects falling to a rate of 2.01% in the first quarter of 2021.

HousingWire, 433 East Las Colinas Blvd., Suite 830, Irving, TX 75039, (469) 893-1480 Manage preferences

Share this

Share on FacebookPlus on Google+