http://www.fhaloanpros.com/2007/09/fed-chief-bernanke-favors-risk-based-fha-premiums/ The Unofficial Guide to FHA Loans & Mortgages Fri, 25 Jul 2008 17:49:49 +0000 http://wordpress.org/?v=2.0.5 http://www.fhaloanpros.com/2007/09/fed-chief-bernanke-favors-risk-based-fha-premiums/#comment-877 Mon, 19 Nov 2007 14:29:23 +0000 http://www.fhaloanpros.com/2007/09/fed-chief-bernanke-favors-risk-based-fha-premiums/#comment-877 [...] Jason Vondrak provided us with a view regarding the Fed and risk-based premiums for FHA loans. Fair enough. Allow me to respond to the points which were raised. [...] […] Jason Vondrak provided us with a view regarding the Fed and risk-based premiums for FHA loans. Fair enough. Allow me to respond to the points which were raised. […]

]]> http://www.fhaloanpros.com/2007/09/fed-chief-bernanke-favors-risk-based-fha-premiums/#comment-874 Mon, 19 Nov 2007 11:57:38 +0000 http://www.fhaloanpros.com/2007/09/fed-chief-bernanke-favors-risk-based-fha-premiums/#comment-874 For a response to Jason's post, please press <a href="http://www.fhaloanpros.com/2007/11/mortgages-whos-to-blame-for-the-lending-crisis/" rel="nofollow">here</a>. For a response to Jason’s post, please press here.

]]> http://www.fhaloanpros.com/2007/09/fed-chief-bernanke-favors-risk-based-fha-premiums/#comment-823 Thu, 15 Nov 2007 05:56:25 +0000 http://www.fhaloanpros.com/2007/09/fed-chief-bernanke-favors-risk-based-fha-premiums/#comment-823 In response to the "Gimme a break comment" The consumer must also be held accountable for their lack of due dilligence. We live in the information age where consumers have all the information they need at their fingertips to make an educated decision based on their current situation. Though drastic, This foreclosure mess is nothing more than a much needed market correction. Too many of these homeowners were chasing winners, and at the same time inflating home values. Sure, banks were loosening up their underwriting requirements which allowed borrowers to qualify for a home that they otherwise could not have. Banks saw it as a chance to "capitalize" on a market that was flourishing, and they too lost. While there are definite dishonest and unethical practices being practiced in the real estate industry, there are unethical practices in every industry. Let us be careful not to pull the integrity blanket over the banking industry as a whole, especially to those banks who practice and continue to practice w/in the legal and ethical framework of the U.S. Constitution. Too many of these homeowners were pursuing the American dream of home-ownership a bit prematurely. Too many times these naive borrowers are bailed out by these heartfelt testimonials when instead they should have done their homework. They made an investment and they lost. Home ownership is a privilege not a right. While much more emotion is tied up in home ownership than stock ownership, it is still an investment that carries a certain level of risk. We live in a capitalist society and there will be drawbacks as well as benefits to this. While this socialist approach to bailing out greedy and overextended borrowers is discouraging, it is also a much needed balancing measure. Attention all socialists: Stop spending efforts and money pointing fingers at banks and brokerages, and start making efforts to educate borrowers. Quit pushing propaganda on the American public that calls for government interference. The real estate market will take its own measures to correct itself. Extreme measures of government intervention will only further damage the real estate economy. In response to the “Gimme a break comment” The consumer must also be held accountable for their lack of due dilligence. We live in the information age where consumers have all the information they need at their fingertips to make an educated decision based on their current situation. Though drastic, This foreclosure mess is nothing more than a much needed market correction. Too many of these homeowners were chasing winners, and at the same time inflating home values. Sure, banks were loosening up their underwriting requirements which allowed borrowers to qualify for a home that they otherwise could not have. Banks saw it as a chance to “capitalize” on a market that was flourishing, and they too lost. While there are definite dishonest and unethical practices being practiced in the real estate industry, there are unethical practices in every industry. Let us be careful not to pull the integrity blanket over the banking industry as a whole, especially to those banks who practice and continue to practice w/in the legal and ethical framework of the U.S. Constitution. Too many of these homeowners were pursuing the American dream of home-ownership a bit prematurely. Too many times these naive borrowers are bailed out by these heartfelt testimonials when instead they should have done their homework. They made an investment and they lost. Home ownership is a privilege not a right. While much more emotion is tied up in home ownership than stock ownership, it is still an investment that carries a certain level of risk. We live in a capitalist society and there will be drawbacks as well as benefits to this. While this socialist approach to bailing out greedy and overextended borrowers is discouraging, it is also a much needed balancing measure. Attention all socialists: Stop spending efforts and money pointing fingers at banks and brokerages, and start making efforts to educate borrowers. Quit pushing propaganda on the American public that calls for government interference. The real estate market will take its own measures to correct itself. Extreme measures of government intervention will only further damage the real estate economy.

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