FHA May Soon Need Taxpayer Assistance
Just when our current financial affairs seemed dismal, it looks like we’ll need to bum money off each other when FHA home loans are apportioned, so sayeth this Washington Post clip depicting how our FHA running out of money isn’t confirmed yet looking close to happening. The agency quickly points out, however, that they’re far from running out of money to pay insurance claims. They were quick to rebut, however, that soon tapping into taxpayer funding sources could be imminent in 2013 sometime after the annualized budget rolls out from the Obama administration.
Many factors come into play when announcing these potential shortfalls, including increases in mortgage defaults and late payments which have been previously backed 4-7 years ago. These payments which need to steadily flow in contribute to this shortfall of FHA monies. Bear in mind that law mandates FHA budgets remain adequate enough to cover potentially forthcoming deficits projected in balance sheets. As of this day, FHA handles approximately $1 trillion worth of notes.
These financial woes have placed unneeded scrutinizing amongst this government agency, founded amidst the Great Depression Era in hopes of breathing new life into the financial markets worldwide. All of this occurring during recent announcement that middle class Americans could suffer the taxman wrath if no deals were struck by the beginning of 2013.
One method recently used, as reported by Washington Post, by the FHA to offset financial pitfalls was increasing the mortgage insurance costs, and appears imminent that these mortgage insurance premiums will continually rise to bring in revenue that once timely mortgage payments would provide.
Here is even a more frightening fact - that the lone black bank prime/government mortgage loan officer in the country during 2001-2008 is the one that discovered this fact, and many barely had time to graduate from high school in between those years. We've got a trillion dollar problem that for the last couple of years society has been trying to expose. Now the Ivy league grad working for the White House is not wanting to understand the crime that has occured and that it involves Ginnie Mae who is owned by the Federal Government and threw a wrench in the way the powers that be had to handle this situation.Continued on the next page