Yet Another Obama Cover-Up: FHA Bailout Fear

Investors.com ^ | 6/07/13 | IBD Editorials

[blueyon]

Subprime: For years, the administration has denied FHA troubles. But emails reveal it not only knew of them, but also withheld evidence of projected insolvency from Congress.

Under Obama, the Federal Housing Administration has increasingly backed new home loans to so-called rebound borrowers who recently defaulted on past mortgages.

The agency is letting lower-income borrowers get loans just three years after foreclosure with as little as 3% down and subprime-low credit scores. In fact, 40% of newer FHA-backed loans are subprime.

The risky lending has led to higher delinquencies. Now at 17%, delinquencies on FHA loans are so high the administration has extended the grace period for repayments on troubled loans to a full year.

Last year, the FHA secretly conducted a Fed-style stress test that found agency losses could hit $115 billion. Because the results were politically embarrassing, FHA chose to not disclose them. The agency even directed its outside auditor to leave the fact that such a test had been performed out of a report released to the public in November.

[blueyon]

Such DECEIT should be punishable by jail time "The agency even directed its outside auditor to leave the fact that such a test had been performed out of a report released to the public in November."

[lowbridge]

bump

[Christie at the beach]

When will the media put their country first.

Thinking of William Wallace all over.

[George from New England]

Reparations, a hundred times over.

[Shery]

The media are putting the country THEY want first. They are on board with socialism.

[Truth29]

"Such DECEIT should be punishable by jail time "The agency even directed its outside auditor to leave the fact that such a test had been performed out of a report released to the public in November.""

I am not sure of the legal ramifications since it was the FHA, but the outside auditor should have its reputation destroyed and their ability to get future reputable work damaged.

[ClearCase_guy]

Since about 2007, we've been saying that everything about Obama is a lie. He was corrupt. He was ruthless. He opened up the sealed divorce papers of his opponent in Chicago and effectively stole that election. We knew he was that kind of guy.

Now, in a period of not much more than a week, the entire country can see that we were right. The lies. The cover ups. The stolen election. The abuse of power. It is all uncovered, and it is staggering in the extent of it.

And I get the impression the country, and the media is yawning. Is American Idol on?

[Cementjungle]

I think it’s probably safe to say that virtually every Federal department has some major scandals waiting to be revealed. We just haven’t uncovered them yet.

[rockinqsranch]

From the article: “The agency is letting lower-income borrowers get loans just three years after foreclosure with as little as 3% down and subprime-low credit scores. In fact, 40% of newer FHA-backed loans are subprime.”

DEJA VU!

I hope I get this right, but I believe I’ve read in the past “the definition of insanity is doing the same thing over, and over again expecting a different result”. A quote attributed to Albert Einstein.

[blueyon]

“I hope I get this right, but I believe I’ve read in the past “the definition of insanity is doing the same thing over, and over again expecting a different result”. A quote attributed to Albert Einstein”

Actually I think they want the same result.............which is insane

[tbw2]

The FHA and VA both have streamlined refinance programs. It is streamlined because they reuse your old paperwork for the refinancing - including your old home valuation, if you choose.
Thus you can refinance an underwater property because the old valuation puts it at a loan to value ratio that is still acceptable.

[Fractal Trader]

ping

[LucyT]

Yet Another Obama Cover-Up: FHA Bailout Fear

Article, then # 1 , # 7 .

Thanks, Fractal Trader.

[Mortrey]

ACORN’s Food Stamp Mortgages

ACORN Housing took credit for developing “several innovative strategies” to get around pesky traditional lending guidelines, which were unfair because they “were geared to middle class borrowers.”

Instead of using passé measures of creditworthiness such as, say, credit history and having an adequate income, ACORN convinced lenders to adopt “more flexible underwriting criteria that take into account the realities of lower income communities.” Henceforth, some banks serving inner cities would accept “less traditional income sources such as food stamps.” (See Foundation Watch, November 2008.)

http://spectator.org/archives/2008/10/29/acorns-food-stamp-mortgages

[Hotlanta Mike]

The Scandal Dump is a Smokescreen

http://www.americanthinker.com/blog/2013/06/the_scandal_dump_is_a_smokescreen.html