Comments on: Many FHA Loans Are Toxic The Day They Close http://housingdoom.com/2009/10/23/many-fha-loans-are-toxic-the-day-they-close/ "He who defends everything defends nothing." - Frederick the Great Thu, 18 Mar 2010 17:28:55 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: malthus http://housingdoom.com/2009/10/23/many-fha-loans-are-toxic-the-day-they-close/comment-page-1/#comment-21046 malthus Sun, 25 Oct 2009 16:41:21 +0000 http://housingdoom.com/?p=4952#comment-21046 "Loans insured by the Federal Housing Administration (FHA) have become the new subprime, and these loans are exposing taxpayers to the same kinds of soaring default rates and losses that brought down Fannie Mae and Freddie Mac as well as destroyed many banks and the private market for mortgage loans." In short, fools rush in where angels fear to tread. Of course, angels do not face the desperate need of buying votes so as to get reelected... “Loans insured by the Federal Housing Administration (FHA) have become the new subprime, and these loans are exposing taxpayers to the same kinds of soaring default rates and losses that brought down Fannie Mae and Freddie Mac as well as destroyed many banks and the private market for mortgage loans.”

In short, fools rush in where angels fear to tread.

Of course, angels do not face the desperate need of buying votes so as to get reelected…

]]> By: Linenoise http://housingdoom.com/2009/10/23/many-fha-loans-are-toxic-the-day-they-close/comment-page-1/#comment-21034 Linenoise Fri, 23 Oct 2009 16:58:36 +0000 http://housingdoom.com/?p=4952#comment-21034 So on the one hand, giving this woman the loan was stupid, and the lender is at fault. On the other hand: "she obviously should be worried about losing one of her three jobs" ...wow. She has three jobs to make ends meet, and thought it was a good idea to buy a home? Is the home worth the stress of three jobs?? Maybe you should have to pass a basic budgeting class before being allowed to purchase a home, but the people teaching it would need to take it first. So on the one hand, giving this woman the loan was stupid, and the lender is at fault. On the other hand:

“she obviously should be worried about losing one of her three jobs”

…wow.

She has three jobs to make ends meet, and thought it was a good idea to buy a home? Is the home worth the stress of three jobs??

Maybe you should have to pass a basic budgeting class before being allowed to purchase a home, but the people teaching it would need to take it first.

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