Quoting the Crisis21/09/2009
“ The FHA does not plan to raise mortgage insurance premiums, he said. Instead, it is trying to reduce its risk of future losses. The agency proposed new rules that include requiring lenders to have at least $1 million in cash and other assets, up from $250,000, to limit losses passed on to the FHA. It will cap refinancings at 125% of the current home value and stop certifying mortgage brokers to issue FHA-backed loans. The agency also will appoint its first chief risk officer. „
FHA’s Risky Loans Point to Bailout in Future (via continuum)
Quote posted at 21:47
