Public To FHA: Prove Your Numbers
December 20th, 2007
Related FHA Stories
- The Definition Game & How To Raise FHA Insurance Fees
- Not The Whole Story
- FHASecure To Be Revised?
- FHA — Let’s Stick It To Investors
- Why Is This A Big Deal?
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You remember FHASecure. It was the presidentially-designated savior of the soon-to-be-foreclosed, Earlier this month — and with great fanfare – HUD said the FHASecure program had already saved 33,000 troubled homeowners.
“In response to the Bush Administration’s plan to help families avoid foreclosure, tens of thousands of homeowners are refinancing their exotic subprime loans with HUD’s new government-backed mortgage product. HUD Secretary Alphonso Jackson today announced that more than 33,000 borrowers have already refinanced their subprime home loans with FHASecure, a government-insured foreclosure avoidance initiative created in September. An additional 20,000 are in the pipeline for approval this month, bringing the total to more than 53,000 in a four month period.”
In contrast, the FHA reports that in the last two weeks of November it received 45,212 loan applications. Of this number, 557 were from delinquent conventional loan borrowers hoping to refinance with FHA mortgages.
Also during the last two weeks of November, 26,796 loans were actually endorsed (approved for funding). Of this number, 87 delinquent borrowers were able to refinance with FHA mortgages.
Yesterday we noted the Reuter’s report which said only 266 FHASecure loans had actually been approved. That’s a far cry from anything approaching 33,000 rescued borrowers.
The only purpose of the FHASecure program is to help troubled borrowers, delinquent borrowers, and not just anyone who needs a loan.
Here’s another figure you need to have: RealtyTrac.com says that in November almost 202,000 households received foreclosure notices.
That’s 6,733 foreclosure notices to families. Per day.
When the federal government provides information, that information is supposed to be accurate. The FHASecure program was sold as a foreclosure-prevention effort. The ONLY measure that counts with the FHASecure program is the number of delinquent borrowers who have been saved from foreclosure.
The test for the FHA is very simple: Provide a run-down by metropolitan statistical area with the precise number of borrowers who have refinanced toxic loans with FHASecure mortgages to avoid foreclosure. Any other measure is junk.
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December 27th, 2007 at 10:23 am
perhaps if the correct information would get out to the public, more people in trouble could be helped…your conventional loan does NOT have to be delinquent to refinance into an FHA Secure loan..and it would be in the best interests of everyone if the media would stop reporting that the loan must be delinquesnt…FHA is probably correct in it’s numbers because FHA knows the correct information and so does the section of the public that goes onto it’s website and uses lenders who know what they are doing…if someone wants help, contact me at the above e-mail address and I will direct them to a Phoenix, AZ lender who DOES know what they are doing…thank you…
March 4th, 2008 at 9:41 am
I’m looking for more statistics like the ones in your article. Where I can find accurate numbers on the FHA, like: the number of loans they insure, the amount of insurance claims they pay out, and the cost of insurance premiums. Can you recommend somewhere that accurately reports data of that nature?