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FBN's Rich Edson on the financial position of the FHA and how its new rules could make home loans more expensive for buyers.
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I'd almost spring here in the start of the spring real -- have market just weeks away really with the new FHA rules that could make home loans more expensive it's already the start of the season down in Florida Rick Jackson has the latest from Washington hey rich.
-- well you don't government analysis is the federal housing administration's more than sixteen billion in the red insures more than a trillion dollars in mortgages.
So to address that shortfall the FHA is increasing annual mortgage premiums by a tenth of a percentage point.
On most of the mortgages it ensures it also requires borrowers to pay that premium.
For the life of the loan still lawmakers say congress needs to overall the FHA the house financial services committee.
Post two hearings in the next two weeks on the issue in a statement chairman Jim canceling right.
The FHA is broke bailout broke we need a sustainable mortgage finance system -- gives hardworking Americans opportunities.
To buy homes they can actually afford to keep.
The one housing advisors is the FHA may need taxpayer funding upfront of talk of a massive bailout is overblown.
So.
It's in the short term absolutely there could be.
You know -- -- advance against the treasury but long term having the solvency of FHA I think it is indisputable.
Still analysts say congress needs to overall federal housing finance the FHA insures more than a quarter of the new mortgages for single family homes.
It's down from its 2009 peak but well above its pre recession average.
Of about 5%.
Back -- all right rich thank you rich -- there in now Washington DCN.
