Tightening loan restrictions lol
FHA Annual Report: Still Writing Crap
Here it is folks....
Isn’t that special? FHA is still writing loans with 70% of them having LTVs over 95%. Worse, almost 30% of the total volume is being written on credit under a 680 FICO - “impaired” to some extent” - and 10.5% against credit between 600-640.
Sound underwriting? Well that’s open to question. What’s pretty certain is that 70% of those loans are at risk of going into negative equity with less than 10% decline in home prices in the next couple of years, because during the first couple of years you pay almost nothing in principal.
Then there’s SFDPA loans, which I have repeatedly called a screw job on the government - and which I maintain still are. From the report:
In full
http://market-ticker.org/akcs-www?singlepost=2266779
>>Sound underwriting?
Uhuh.
And what guarantee is there that the FICO scores in question are verified any better than the ones Argent Mortgage fabricated on thousands of loan apps?
No FICO? No Problem - when you've bought the source code to the Empower loan origination software (like Argent Mortgage did) then you can "Revolutionize" the mortgage industry by simply changing bits of the software you don't like - such as changing the Read Only bit for the FICO field on certain data entry screens; thus allowing any old number the "loan exec" (or whoever) approved to be pulled out of thin air....
Where's LEO, RICO?
