What We're Hearing

The FHA loan market continues to be red hot and shows no sign of letting up. Just take a look at the latest issuance numbers from the Government National Mortgage Association. In the second quarter Bank of America -- the nation's largest FHA lender -- issued $34 billion in GNMA MBS, a stunning 62% jump from 1Q. Wells issued $29 billion, a 38% jump. During the subprime boom the government's "subprime program" was shunned by the industry (which favored private sector subprime loans, most of which have now exploded on consumers). But now FHA is the product of choice for lenders, Realtors, and home builders and is spurring some to ask this question: is the government permanently ensconced in the mortgage business because of its control over FHA, Fannie Mae and Freddie Mac? The rankings are available in National Mortgage News's Quarterly Data Report. For more info email: Deartra.Todd@Sourcemedia.com...