Nov 17, 2011
NAR debunks myths about FHA
17 Nov 2011
Posted by Andrew Kantor
Is the FHA about to go belly-up? (Hint: No.) Will it need a bailout? (Ditto.)
Because there’s so much confusion and misinformation floating around about the current state of the Federal Housing Authority, NAR has created a quick “cheat sheet” — “Myths and Facts about the FHA Loan Limits.” It explains why increasing loan limits will not be putting FHA at risk, despite what you may have heard.
For example, while you may think FHA is in some sort of financial trouble, NAR points out that it has $33.7 _billion_ in cash reserves, and that’s _up_ $400 million from last year. To put that in perspective, private financial institutions are required to have enough cash to cover a year’s worth of losses; FHA has enough to cover _30 years’ worth_.
That’s just a sample. You should grab a copy of the doc and check it out. That way you’ll have a clearer — and more correct — idea about what’s up.