03-17-2025, 10:33 PM
UBelow is the chart from Punatang’s mba link. If you look over the 20 year history of loan defaults, you’ll see FHA and conventional home loans follow a similar line, rising and falling in parallel. Occasionally for short periods of time (like now?) FHA will rise slightly higher in comparison. But other than 2008 there was not a housing market crash in HPP.
FHA loans will probably always have a higher default rate as the program was designed to provide loans to people who can’t get a conventional loan. The idea being that America is better off with more home owners. Home owners take better care of their property than renters in general.
Otherwise the plutocrats and oligarchs will own even more than the do now, as well as the banks that we go begging to, hat in hand for our loans. But sure, let’s give them even more money.
FHA loans will probably always have a higher default rate as the program was designed to provide loans to people who can’t get a conventional loan. The idea being that America is better off with more home owners. Home owners take better care of their property than renters in general.
Otherwise the plutocrats and oligarchs will own even more than the do now, as well as the banks that we go begging to, hat in hand for our loans. But sure, let’s give them even more money.