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By Martin Bouma | Agent in Ann Arbor, MI
  • Federal Housing Administration Insurance Program in Good Shape

    Posted Under: Home Buying in Ann Arbor, Home Selling in Ann Arbor, Home Insurance in Ann Arbor  |  November 16, 2010 1:04 PM  |  347 views  |  No comments

    Good news for Ann Arbor homeowners: the Federal Housing Administration’s mortgage insurance fund is in good financial shape, and its reserves have grown by more than $1 billion over the past year. FHA now has enough capital resources to cover projected claim losses, and would not require a taxpayer subsidy even in a worst-case scenario, according to the agency's annual report to Congress.

     

    Using conservative assumptions about future growth of home prices, and without any new policy actions, FHA’s capital ratio will approach 2% (as mandated by Congress) in 2014 and exceed the 2% threshold in 2015. “It’s clear that FHA is in a stronger position today than we were just one year ago,” said FHA Commissioner David H. Stevens. “While we are not yet completely out of the woods, based on the evidence we’re seeing, FHA is weathering the economic storm while helping to create a firm foundation for our nation’s recovery.”


    National Association of Realtors® President Ron Phipps stated, “FHA announced major changes earlier this year and took critical steps to strengthen and ensure its long-term financial soundness. Those efforts have paid off.” He added, “The future health of FHA’s reserve funds depends heavily on the direction of home values in the coming years. Home values have shown patterns of stabilization over the past 18 months, and in a recent independent survey, most economists expect modest home price gains over the next 3 years, so FHA’s reserves should steadily improve.”


    Over this past year, FHA:

    • Served more than 1.75 million households by insuring $319 billion in single-family mortgages.

    • Enabled 882,000 families to become home owners for the first time. This represents one-third of all first-time buyers in the nation.

    • Helped more than 450,000 families avoid foreclosure through loss mitigation actions.

    • Helped 556,000 families to refinance their mortgage at lower interest rates, saving households an average of more than $140 per month.

    • Provided access to credit for close to 40% of purchase mortgages including 60% of all African-American and Hispanic home buyers.

     

    Martin Bouma - your Ann Arbor expert – can help you find the perfect piece of Ann Arbor real estate. Whether you’re buying or selling a home, the Bouma Group can answer any questions you have about real estate in Ann Arbor. Thinking of settling down in a Ypsilanti home, a Saline property, or the Hunters Ridge neighborhood? Call the Bouma Group today! And don’t forget to check out our Condo Hotline – we know the Ann Arbor condominium market better than anyone!

 
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