The FHA is either close to achieving full recovery or nearing collapse and needing a potential taxpayer bailout, depending on which of two opposing views is more persuasive. The conflicting views stem from the latest analyses of the FHA’s health conducted by Potomac Partners, a mortgage industry consultancy, and the American Enterprise Institute’s International Center on Housing Risk. Both reports looked into FHA risk, mortgage performance, delinquency rates ...
Prior to the financial crisis and the government takeover of Fannie and Freddie, some seller-servicers had “strategic alliance” deals that allowed them to pay under 15 basis points in g-fees...