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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: nextrade! who wrote (194056)	3/30/2009 12:18:17 PM
From: MulhollandDrive	Read Replies (1) \| Respond to of 306849

looks like FHA really is the new sub-prime...diana olnick reported this morning the are responsible for 30% of ALL mortgages right now....unbelievable Defaults Rise on FHA-Insured Mortgages online.wsj.com. By JAMES R. HAGERTY Defaults on home mortgages insured by the Federal Housing Administration in February increased from a year earlier. A spokesman for the FHA said 7.5% of FHA loans were "seriously delinquent" at the end of February, up from 6.2% a year earlier. Seriously delinquent includes loans that are 90 days or more overdue, in the foreclosure process or in bankruptcy. Since the collapse of the subprime mortgage market in 2007, most home loans for people who can't afford a sizable down payment are flowing to the FHA. The agency, which is part of the U.S. Department of Housing and Urban Development, insures mortgage lenders against the risk of defaults on home mortgages that meet its standards. FHA-insured loans are available on loans with down payments as small as 3.5% of the home's value. The FHA's share of the U.S. mortgage market soared to nearly a third of loans originated in last year's fourth quarter from about 2% in 2006 as a whole, according to Inside Mortgage Finance, a trade publication. That is increasing the risk to taxpayers if the FHA's reserves prove inadequate to cover default losses. As of January, the cities with the highest FHA default rates in January were Punta Gorda, Fla., at 18%; Detroit, 15.6%; Flint, Mich., 15.1%; Fort Myers-Cape Coral, Fla., 15%, and Elkhart-Goshen, Ind., 12.1%, according to a HUD report. Foreclosed FHA homes owned by HUD totaled 39,687 in January, up 22% from a year earlier.

To: nextrade! who wrote (194056)	3/30/2009 1:12:19 PM
From: ChanceIs	Read Replies (2) \| Respond to of 306849

>>>will not work any more than distracting the people with AIG's bonuses did while the real theft with AIG was the nearly $100 billion funneled to banks around the world.<<< Denninger gets it. Well maybe not. he understands that the real looting had nothing to do with bonuses, but rather paying Goldman in full for their puts against AIG. Perhaps what he doesn't get is that no more than 15% of US citizens get it. Although they will all get it in the end. Awfully glad to hear someone in the media proclaiming the emperor's nudity.