Al Yoon recently recently wrote this interesting article on the FHA program for Reuters:
BOSTON, Oct 15 (Reuters) – The Federal Housing Administration will likely boost its share of the mortgage market to as high as 12 percent in coming months as it picks up borrowers locked out of subprime and other private lending programs, two leading industry executives said on Monday.
“I think FHA will play a huge role in the recovery of the market,” David Lowman, chief executive of JPMorgan Chase & Co.’s (JPM.N: Quote, Profile, Research) global mortgage group, said at the Mortgage Bankers Association annual meeting in Boston. Compared with a market share of about 2 percent in recent years, “I envision they will be in the double-digits, at 10 percent to 12 percent.”
President George W. Bush in late August announced a program that would widen the reach of the FHA program that guarantees loans purchased by mortgage investors. The initiative, known as FHASelect, makes it easier for borrowers facing default to refinance into the FHA program.