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The performance of the FHA's loan portfolio
Monday, November 02, 2009
In case you haven't seen the recent performance of the FHA's loan portfolio in chart form, well, here it is, compliments of T2 Partners fine (and lengthy) report on the U.S. housing market that you can download here, after a short registration.
Recall that the FHA went from about 2 percent of all loan originations a couple years ago to a whopping 25 percent this year. Obviously, they're going for quantity, not quality.
5 comments:
A shocking graph, but could you tell me what definition of "default rate" has been used? Delinquencies, I would think, but how ong? 30 days, 60 days? Just to be sure: has the same definition been used for all vintages, 2004 up to 2008? (I suppose so, but I'd like to be certain.)
If so, FHA seems to have a problem. Do I understand correctly that FHA is a branch of the U.S. givernment?
I think delinquencies means 90 days or more past due and I'm sure the definition is consistent through the years, otherwise, it would be very misleading. Yes, the FHA is part of the government.
Why would you pay the FHA back? They've pretty much made it clear they're not in it for the money, but simply to keep the bells and whistles going. So if you have no money for rent, why not take out a no-down payment loan (use the $8000 tax credit money for closing costs) and live in a house for six months to a year (minimum) before they can kick you out?
Hey Tim, do you know if there's a way to get a hold of the performance of FHA's 2009-vintage loans? Thanks in advance!
Sorry, I don't.
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