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I really do hate to be a one trick pony lately with every post about the same thing, and I promise next week I’m going to jump back into the every day mechanics of getting FHA loans closed, but one of the most pressing issues facing our country today is the tightening of credit in the mortgage market. People who could be helped to keep their homes, or to buy new homes and help stop the downward spiral of housing values are being locked out of getting a loan while the politicians hold press conferences telling us what they are supposedly doing about the problem.

I’m not talking about rough credit borrowers who can’t prove they really make any money. I’m talking about people with a few problems that have already been solved, who can prove a stable source of income yet are stuck with subprime loans or paying more in rent than they would be paying on a 30 year fixed FHA loan.

A short time ago, I told you about the efforts of Senator Elizabeth Dole to stop the FHA Modernization bill from moving ahead while she added an amendment to stop the risk based mortgage insurance premiums from being implemented. Now Senator Tom Coburn from Oklahoma is doing the same thing – for a much less valid reason. It seems Senator Coburn may be holding the bill up for the sole reason of ticking off Senator Harry Reid! According to NewsOK.com, Senator Coburn is using parliamentary procedures to hold up 95 bills that the Senate Majority Leader wanted to pass in expedited fashion.

According to the article, “Coburn said the bill was not ‘the proper response to the housing crisis’ since it would increase government-backed mortgages and increase the government’s liability by an estimated $1.6 billion.” This shows that the Senator Coburn is making a knee jerk response with no understanding of how the FHA program works to back the mortgages it insures. To use the total amount of new mortgages that could be insured as the amount of the government’s liability is a complete mischaracterization of how the program works.

I encourage everyone reading this who is in the mortgage business and talking to borrowers everyday who are going under while politicians who don’t understand the mortgage business play petty politics get out their pen and paper and let someone hear about it.

In the meantime, keep in mind that there are still many borrowers who can be helped by the traditional FHA mortgage program we already have. If you need help getting up to date on FHA guidelines and best practices, and want to know how to close more loans today, take a look at http://fhatrainingsource.com.

FHA Mortgage Reform Newsflash: Finally - Some Good News!


Related posts:

  1. FHA Mortgage Reform
  2. FHA Mortgage Reform: Still Waiting!
  3. What Has Happened To FHA Reform?
  4. FHA Mortgage Insurance Changes: Is The New Rule Still On Track?
  5. News Flash – Reprieve for FHA Seller Assisted Down Payment Programs

Filed under: FHA Updates • H.R. 1852 • Industry Information

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