FHASecure: Did It Really Do That?
August 6th, 2008
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The White House reported yesterday in a “fact sheet” that “last year, the President launched FHASecure, which has helped more than 290,000 families avoid foreclosure by refinancing into safe Federal Housing Administration (FHA)-insured mortgages.”
Unfortunately, and inconveniently, the official numbers from HUD tell a different story.
For instance, during the period between July 1st through July 15th, HUD received 112,162 FHA loan applications. Of this number 242 were from delinquent conventional borrowers.
During the same period, HUD endorsed (agree to insure) 61,899 FHA loans. Of this number, just 137 were from delinquent borrowers seeking to refinance toxic loans.
Since last October 1st, HUD has received 1,477,038 loan applications and endorsed 819,599 FHA mortgages. Of the loans approved, just 3,303 were from delinquent conventional borrowers.
The idea that FHASecure has “helped more than 290,000 families avoid foreclosure” is fantasy and fiction, something appropriate for Jules Verne but not for a time when large numbers of borrowers, lenders and investors need help from the federal government.
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This entry was posted on Wednesday, August 6th, 2008 at 3:36 am and is filed under . You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.
Listen to FHA Loan Pros columnist Peter Miller on American Public Radio: 
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August 7th, 2008 at 9:31 am
Peter, thanks for the insight. I also had and have a very hard time believing that the FHA Secure program even works. I have tried to do the loan for many of my borrowers but there is always something that comes up that does not qualify my borrower. I hope that we can get this fixed
September 5th, 2008 at 11:04 pm
I have been saying what Peter said since the inception of the “program” that was suppose to help SOOOO many people. As you say VA Refi, it never works. The underwriters I talk to say they RARELY approve one. The borrower can’t have had any late payments prior to the re-set. HELLO!!! The reason they have a sub=prime 2/28 in the first place is because they had lousy credit in the first place. Bush and his idiot bandits think this program is going to be the big feather in their caps. They come up with these programs without doing some “real life” research. It failed the first time, and obviously, it is doomed again.
September 16th, 2008 at 3:26 pm
What’s going to happen wit real estate in 2009? I have several clients asking me this question and just curious on how you would respond.