Exactly. How does this keep mortgage companies from issuing risky loans? It doesn’t. In fact, it encourages it, because our tax dollars guarantee the loan. And I love the double-speak. This is NOT designed to protect homeowners or keep them in their homes, it’s designed to bail out mortgage companies when homeowners default.
FHA is FHA. It’s been around for years.
Lenders have already tightened non-FHA guidelines and this bill won’t affect that at all.