Late last week, Congress agreed to reinstate the temporarily inflated FHA loan limits that fell on October 1.
So for the next two years, homeowners in high-cost regions of the country will be able to take out FHA loans for amounts up to $729,750, as opposed to the $625,500 cap that previously applied.
While this may sound like a win for the badly bruised housing market, a recent study suggested otherwise.
Back in July, a pair of George Washington University researchers claimed that higher FHA loan limits would do little to positively affect housing.
In fact, they noted that the FHA loan limit could be slashed in half and still serve 95 percent of its historic target market.
But we all know times have changed, and the FHA’s target market isn’t the underserved, low-income borrowers of times past.
These days, it’s anyone who doesn’t want to come up with a large down payment to purchase a home.
Thanks to their flagship 3.5% down loan program, the FHA’s market share has risen to about 30 percent of loan origination volume, putting pressure on capital reserves and increasing the likelihood of a taxpayer bailout.
All this at a time when we’re supposed to be shrugging off government support and bringing private capital back into the mix.
For the record, those researchers feel the FHA should hold a nine to 15 percent share of the mortgage market and lower the max loan limit to $363,000.
Meanwhile, the conforming loan limit for mortgages backed by Fannie Mae and Freddie Mac is staying put at $625,500, likely because any more risk thrown their way would be considered unacceptable.
This is a blow for those in high-cost regions of the United States looking to avoid jumbo loan financing and the higher mortgage rates that come with it.
Why? Well, most
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Please note: The Ask Experian team cannot respond to each question individually. However, if your question is of interest to a wide audience of consumers, the Experian team will include it in a future column.
Is it legal for a collection agency to submit an account that they buy from a creditor as “new” even though that same account before it was purchased from the original creditor by the collection agency was two, three four years old?
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Last year, people spent $67 billion buying video game hardware and games. According to market research firm Gartner, this market will likely earn another $7 billion in 2012.
But while traditional video games – like the ones you’d buy at a store or online – still dominate the gaming industry, a revolution of sorts is taking place…
Social and mobile gaming platforms are exploding on the scene faster than anyone ever expected.
In 2009 alone, social gaming revenue grew 116.4 percent to $1.4 billion. By 2015, social gaming will likely be a $5-billion market all on its own. Gartner’s Tuong Nguyen says mobile gaming will probably grow “even faster.”
For investors, this kind of growth shouldn’t be ignored. And two firms i
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Summary
In a 23 page decision signed July 15, 2011, Judge Walsh of the Delaware Bankruptcy Court denied a motion to allow a plaintiff to file an amended complaint, holding that the amended complaint was too deficient to survive a motion to dismiss and therefore would not be allowed. Judge Walsh’s opinion is available here (the “Opinion”).
Background
Following Fruehauf Trailer Corporation’s (the “Debtor”) bankruptcy and subsequent confirmation of its plan in September 1998, Chriss Street (“Street”) was appointed as the trustee of the Debtor’s liquidating trust. He served in this capacity until August 2005, when he resigned and was succeeded by Daniel Harrow (“Harrow”). While there was exten
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Why Bonds are Best Investments for Baby Boomers
With several hundred baby boomers nearing retirement in the coming years, there is much fear about how much strain the social security system can bear. Many analysts predict that when all of these retirees come to depend on social security to meet their post retirement living expenses, the entire system may collapse.
It cannot be said with certainty that social security is doomed but it is clear that in near future, Americans may get a much smaller percentage as social security than at present.
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Have you been mis-sold any financial product? If yes, then you must be confused on how to approach the consumer forum and talk to the company’s customer care to get justice. While there is no guarantee, neither there is any magical formula on getting justice. There are few rules and some tips which you can keep in mind while trying to resolve complaints and approaching consumer forums. So I asked Ankur Singla of Akosha.com, to share some tips and tricks which you can use. Akosha.com works in the area of resolving consumer complaints against large brands. S
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A judge in Milwaukee County recently ruled that We Energies is not required to refrain from disconnecting Chapter 128 filers’ power. A sudden and dramatic increase in Chapter 128 petitions in Milwaukee County prompted the energy provider to ask the court whether or not they were required to continue providing power to Chapter 128 filers.
Previously, We Energies would restore power and refrain from disconnecting power to delinquent customers who had filed for Chapter 128. From January to August of this year, already 3,292 people filed Chapter 128 petitions in Milwaukee County. In 2009, a total of just over 1,000 people filed Chapter 128 petitions in the county.
Circuit Judge William Pocan ruled that disconnecting utilities does not qualify as an “execution, attachment or garnishment” prevented under Chapter 128 laws.
If you are seeking legal assistance with filing a Chapter 128 petition, contact the Milwaukee Chapter 128 debt relief lawyers of DeLadurantey Law Office, LLC at 414-377-0518 to speak with one of our experienced Chapter 128 attorneys.