The FHA may have had a good fiscal 2015, but increasingly the bigger lenders are moving away from the mortgage insurance program. RealtyTrac looks at how the landscape has changed in the last six years and what it means for you going forward.
Will smaller lenders who step into the gap be willing to bear the burden of regulatory scrutiny? What opportunities are there for nonbank lenders? How will this affect the buyer? Here's one take.
The FHA is facing a mutiny. Despite terrific results in fiscal 2015, some of the largest lenders in the country have had it with the nation’s per-eminent mortgage insurance program. They’re offering borrowers alternative loan options and setting up the mortgage industry for a clash of financial titans.
The FHA program is a big deal because it allows purchasers to buy with just 3.5 percent down. In 2015 more than one-fifth of all purchase money mortgages were insured through the FHA.
The nation’s largest lenders have traditionally been major players in the FHA market, but those days are quickly becoming old news. To see what’s going on compare 2009 with what we have so far in 2015. Data from RealtyTrac shows how times are changing.
Read the full story here.