Thursday, April 2, 2009

FHA Loan Defaults On The Rise!

HUD Secretary Donovan says that the FHA is "unlikely to face the catastrophic losses borne in the subprime sector." Why do I find this hard to believe?

Are the people who took out loans with the FHA somehow immune from rising costs, stagnant wages and unemployment?

"As of February, 7.2 percent of loans backed by the FHA were either 90 days overdue or in foreclosure, up from 5.8 percent last August."

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