Looks like banks are sick of foreclosing on people too. Credit Suisse is making a request to the federal government to loosen the standards on qualifying for a government-backed FHA loan. Right now it is very difficult to get an FHA loan if a borrower has fallen behind on mortgage payments in the last 12 months. That is leading to a lot of foreclosures. If the FHA loosens standards and allows people who are falling behind to refinance the theory is that fewer foreclosures would occur. (Of course the risks taken by the FHA program would greatly increase). Here is an recent Reuters article on the subject and here is the WSJ take on it.
Comments Off on Banks hoping FHA will loosen standards and accept more applicants Posted by G.R.A. Admin on Thursday, February 14th, 2008