The FHA audit is in and it looks great when compared to Fannie Mae & Freddie Mac in our current economy. The FHA audit shows that FHA has more than double the minimum amount of capital required.
FHA mortgage guidelines continue to remain less restrictive than Fannie Mae or Freddie Mac mortgage guidelines, imagine that. FHA currently requires only 3.5% down payments with no real minimum credit score required. The Banks in most cases have a minimum FHA fico overlay of 650 which is unbelievable when compared to a conventional mortgage head to head. The lowest down payment conventional loan that I am a where of requires a minimum 5% down payment and a minimum 720 fico score. Hardly comparable.
Fannie Mae & Freddie mac continue to lose money and will soon need additional Federal Funds. Fannie & Freddie leadership should speak with David Stevens, Head man at FHA, to see how he is running things. You can few the FHA audit yourself at this link http://www.box.net/shared/xdnnpprajt.
Mortgage news continues to be reported incorrectly as some Media outlets claim FHA needs Federal funds. This should be yet another RED FLAG that Brokers did not cause the Mortgage Meltdown.