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E-Mail 'FHA Risk Study Critical of Streamline Refinance Program' To A Friend

by Karen Lawson
March 18th, 2010

Email a copy of 'FHA Risk Study Critical of Streamline Refinance Program' to a friend

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This entry was posted on Thursday, March 18th, 2010 at 12:50 pm and is filed under . You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

3 Responses to “FHA Risk Study Critical of Streamline Refinance Program”

  1. Andrew Caplin Says:

    Karen,

    Unfortunately, you open with a mis-statement, which makes the article bizarre. In fact, Caplin, Freeman, and Tracy [1997] is an article that proposed the streamline policy well before FHA adopted it. The problem is not the policy, but the unbelievably poor account keeping and analysis. Please read the relevant articles,
    Andrew Caplin

  2. Karen Lawson Says:

    Professor Caplin, Thank you for reading this article and for clarifying your position concerning the study cited in this post. I apoligize for any misinterpretation of your work.

  3. Gina Pogol Says:

    I think I see how the confusion came about. A Washington Post article makes an almost identical statement to Karen’s. “Caplin said the audit ignored the risks posed by FHA borrowers who owe far more than their homes are worth and yet managed to refinance into new FHA-backed loans.” If that was the source of her information it’s pretty easy to see how the meaning was twisted.

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