Quote:
Originally Posted by MediaArtist
And, it's over.
http://www.zerohedge.com/news/2013-0...asury-bail-out
FHA has officially gone insolvent and failed. Just announced yesterday that FHA needs a bailout for the first time in its nearly 80 year history. The institution now needs $1.7 billion dollars just to stay afloat just as I predicted back in 2011.
48 laws should never ever give advice to anyone on mortgages for the rest of his life.  |
This is interesting and a little confusing. The posting states that the bailout is to cover projected loses due to a reverse mortgage program for seniors, not because of small down payment percentages and people defaulting on their loans. First off, why does a reverse mortgage program even exist? Second, isn't the whole point of a reverse mortgage for the FHA or bank to become the owner of a property once the senior receiving the reverse mortgage moves out or passes on? Have the banks been over paying on the reverse mortgages for more than these properties are worth, and have they not taken ownership of any of them yet? In theory, banks should be making money in the long term with reverse mortgages.