Comments on: Will FHA Loans Bring About Housing Bust Part II?

By: Richcinaz

Richcinaz — Tue, 23 Jun 2009 00:18:14 +0000

Since they are government backed loans I think we the taxpayer should be able to demand full recourse if they default on the loan.

By: toysarefun

toysarefun — Mon, 22 Jun 2009 02:59:06 +0000

rdotson310 had a pretty good post response to the story on the linked thread.

By: DocRocz

DocRocz — Sun, 21 Jun 2009 20:58:39 +0000

I would think that the answer would lie in the historical data.
These loans aren’t new with the exception of the tax credit.
twist is very good at finding data, maybe she can shed some light on what the historical data shows for defaults on FHA loans.
That data might shed some light on this conversation.

By: manfre

manfre — Sun, 21 Jun 2009 07:06:17 +0000

Yep, yep!

Unless the government can find a way to push interest rates lower than 5% and get closer to 4 or even sub 4%.

The housing market will fall, just at a slower rate since the government has gotten involved.