Home and condominium prices have been on the rise all through the Fall of 2014 through today, the Summer of 2015. The Federal Housing Administration is receiving pressure from realtors and mortgagees such as lenders, to backstop with taxpayer funds what amount to subprime mortgages. The realtors and mortgagees argue apparently that a guarantee from the FHA will provide people with the capacity to purchase condominiums who do not have that capacity without a guarantee.FN1 A former head of the FHA, whose current position is as head of the Mortgage Bankers Association, is among those pushing the view that the foreclosure crisis has abated.FN2
Upon the same reasoning, the Chief Operating Officer of a business organization named “ReadySetLoan” also wants the Federal Housing Administration to guarantee purchases by seniors of reverse mortgages.FN3
FN1 See Kenneth R. Harney, “FHA Squeezing Loans for Condos Despite Surging Demand” (Los Angeles Time Online, posted Sunday, November 9, 2014.) [Don't let the annoying ads distract you. You can easily delete the ads or wait them out if you want.]
Reprinted with the permission of Thomson Reuters and the author from the manuscript of the author's 2015 Supplement chapters, and particularly Section 3:112, in “Litigation and Prevention of Insurer Bad Faith, 3d” ©2015 by Thomson Reuters.