FHA in Trouble?

I'm reproducing below an article from Real Trends Update, a publication for Realtors. This article highlights some concerns recently circulated about the viability of FHA and whether we have another government "bailout" in the making, as we saw with Fannie Mae and Freddic Mac in 2008. This is certainly not good news in real estate as FHA has been a mainstay in the financing world during these difficult times.

November 29, 2011

The Week in Review

By Steve Murray

FHA Following in Fannie and Freddie Footsteps?

Recent back and forth between outsiders and insiders sounds suspiciously like the summer of 2008 all over again. FHA says it is sound and doing its job and is being far more careful than it used to and certainly more careful than Freddie and Fannie were. Outsiders say that with over $1 trillion dollars in insured mortgages, many with less than 5 percent down and less than 0.5 percent reserves, that without “implied” government backstop, this is another bailout in the making.

Lets face it – without FHA financing housing would really be hurting. They now insure around one third of all mortgages. And that share appears to still be growing. And FHA officials stress that all of their portfolio measurements point to a far healthy, more qualified buyer than in the past. Still who really trusts anyone with less than one half of one percent of reserves insuring $1 trillion dollars of mortgages with prices still slipping?

Housing is starting to heal in many markets and with unemployment heading slowly downwards prospects for the next year are better as well. Any softening in the economy now and FHA mortgages could take another hit….one it clearly cannot afford.

If you have any questions, please do not hesitate to call me. You can reach me, Don Ricedorff, at The Wells Group 970-375-7014, don@frontier.net, or at my website at durangorealproperty.com.

Don Ricedorff is a licensed real estate broker in the State of Colorado, with 18+ years of experience, and he resides in Durango Colorado.He has numerous real estate designations, which have provided him with an unparalleled education to assist his clients. The designations include:

CRS, Certified Residential Specialist
CRB, Certified Residential Broker
CCIM, Certified Commercial Investment Member
CDPE, Certified Distressed Property Expert
ABR, Accredited Buyer Representation
GRI, Graduate of Realtor Institute
RSPS, Resort and Second Home Property Specialist
CIPS, Certified International Property Specialist
SRES, Senior Real Estate Specialist

He is also an active volunteer in the community and his church. His highest aspiration is spending time with his wife, Janet, and his three children Kelly, Katie, and Kyle. His other interests include playing tennis, fly fishing, hiking, boating, and water skiing.

Happy Thanksgiving

Design Highlight: Vertical Light

When light is installed nearly blush against a vertical surface, walls come to life much like a 3D movie; this design highlight is referred to as wallwahing. Consider the effect light has when used as an accessory rather than a simple necessity. The below images capture wallwashing in residential spaces.

//Smooth glass blocks take on new angles and shadows.

//Wood becomes exotic in color.

//Textured walls become visually tactile.

Perfect Season

Have you noticed the beautiful fall days, with a hint of chill in the air in the morning, and warming to a comfortable temperature during the day? How about the deep blue skies and the clear rivers and streams? Even as the fall colors are beginning to dwindle, I marvel at what a perfect season fall is in Durango, Colorado.

It is also the perfect season for real estate. What makes a perfect season for real estate? The market must have adequate choices; just a few years ago, there was a low inventory, and few choices for buyers. Today, the number of homes available is great, and buyers have significant choices. Second, this is a great time for negotiation, as there is competition in many neighborhoods, and we are still in the fall selling season prior to winter. Third, if you have solid credit, an adequate down payment, and most important, a good credit score, money is available, and interest rates are low. The low cost of money, many great choices, and a strong negotiation position makes this the perfect season to buy!!

Last, this is the perfect season in our life! We are fortunate to live in a great country, with all of our freedoms, and to wake up each day to a bright and wonderful future. We need to be thankful for those serving in the armed forces that protect our freedoms, and be thankful for those in leadership of our nation, state, country, and city for their commitment to give of themselves to better our opportunities. Most importantly for those of us that call Durango home, we live in the best place in the country, and there are people all over this nation that wish they could be here.

This is truly a blessed season. Enjoy and make the most of it, and don't forget to vote.

Don

If you have any questions, please do not hesitate to call me. You can reach me, Don Ricedorff, at The Wells Group 970-375-7014, don@frontier.net, or at my website at durangorealproperty.com.

Don Ricedorff is a licensed real estate broker in the State of Colorado, with 18+ years of experience, and he resides in Durango Colorado.He has numerous real estate designations, which have provided him with an unparalleled education to assist his clients. The designations include:

CRS, Certified Residential Specialist
CRB, Certified Residential Broker
CCIM, Certified Commercial Investment Member
CDPE, Certified Distressed Property Expert
ABR, Accredited Buyer Representation
GRI, Graduate of Realtor Institute
RSPS, Resort and Second Home Property Specialist
CIPS, Certified International Property Specialist
SRES, Senior Real Estate Specialist

He is also an active volunteer in the community and his church. His highest aspiration is spending time with his wife, Janet, and his three children Kelly, Katie, and Kyle. His other interests include playing tennis, fly fishing, hiking, boating, and water skiing.