Senate appropriators are concerned that the Federal Housing Administration single-family program is becoming a "lender of last resort" and needs to do a better job of educating homebuyers."FHA is clearly becoming a lender of last resort, taking on the most risky mortgages, especially those likely to default," according to a report that accompanies the Department of Housing and Urban Development fiscal year 2006 appropriations bill. The FHA default rate has increased from 2.99% in fiscal 2000 to 6.9% in fiscal 2004, while claims have increased from $5.5 billion to $8.5 billion over the same period. In approving the Treasury, Transportation, and HUD appropriations bill, the Senate Appropriations Committee directed HUD to educate FHA homebuyers about the value of a home inspection. Without a home inspection, these purchasers may find themselves responsible for high-cost repairs that that they cannot afford, thus "putting the home at risk of foreclosure," the committee report said. The TTHUD appropriations bill provides $185 billion in loan commitment authority for the FHA and gives Ginnie Mae the commitment authority to guarantee $200 billion in mortgage-backed securities in fiscal 2006.
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According to the Federal Reserve Board's latest financial stability report, persistent inflation and policy uncertainty are the primary worries for banks. Survey respondents expressed heightened anxiety over murky policy outlooks due to geopolitical turmoil and rapidly approaching domestic elections.
9h ago -
Leaders of ORNL Federal Credit Union are piloting Zest AI's new artificial intelligence-powered assistant to ensure equitable underwriting practices and measure performance against similar institutions.
11h ago -
McCargo stabilized the agency at a crucial time as she helped navigate it through both a pandemic and subsequent dramatic interest-rate cycle change.
11h ago -
The quasi-public entity's plan to buy certain closed-end seconds would constitute "unnecessary government encroachment," the Structured Finance Association said.
April 19 -
The mortgage subsidiary of Hilltop Holdings posted another quarterly loss and volume slipped, but management also sees signs of optimism.
April 19 -
The increasing frequency and severity of droughts was top of mind for panelists at AmeriCatalyst's "Going to Extremes" conference Thursday.
April 18