This Issue’s Highlight
FHA’s Predatory Insurance Practices
The Federal Housing Administration’s (FHA’s) mortgage insurance practices qualify as predatory under the definition set out by the Federal Deposit Insurance Corporation (FDIC’s) inspector general. First, FHA mortgage insurance pricing grossly overcharges hundreds of thousands of lower-risk borrowers. Second, the FHA relies on a borrower’s lack of understanding of the complicated nature of FHA insurance as well as a borrower’s expectation that the FHA would not intentionally permit borrowers to be steered into financially disadvantageous transactions. Third, cross-subsidies allow the FHA to offer abusive loan insurance terms to hundreds of thousands of high-risk borrowers.
This Month’s Features:
- Spotlight on FHA’s Predatory Insurance Practices
FHA’s Mortgage Insurance Practices Qualify as Predatory under the FDIC Definition
- Spotlight on Best Price Execution
Minor Changes over Last Month
- Spotlight on Insolvency
FHA’s Private GAAP-Estimated Net Worth Declined to Lowest Level in Seven Months
- Spotlight on Delinquency
Various Rates Experience Moderate Drop from September to October
