White House: FHA Saves 225,000 Homeowners From Foreclosure

by Peter G. Miller
June 12th, 2008

According to a White House fact sheet, “the Administration Has Taken And Continues To Take Aggressive Actions To Help Americans Keep Their Homes

“The President launched FHASecure, which has helped more than 225,000 families avoid foreclosure by refinancing into safe Federal Housing Administration (FHA)-insured mortgages.”

Meanwhile, in the real world, the latest figures from HUD show that during the first 15 days of May a total of 284 delinquent conventional loans were refinanced with an FHA mortgage.

Since October 1, 2007, a total of 2,560 delinquent conventional mortgages have been replaced with FHA financing.

That’s it. That’s the total.

Last month HUD issued a statement which said “U.S. Housing and Urban Development Deputy Secretary Roy A. Bernardi today announced the Bush Administration’s FHASecure product has helped 200,000 homeowners refinance their mortgages and avoid foreclosure.” What this statement actually means is that roughly 2,000 homeowners facing foreclosure were able to refinance with an FHA loan and 198,000 people in good financial standing who are not facing foreclosure also used FHA financing.

While the HUD statement is both literally true and grossly misleading, the White House statement is just nonsense.

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