Murin, who joined Ginnie Mae on July 1, 2008, plans to pursue private business opportunities, according to the people, who asked not to be named because an announcement has yet to be made. His resignation would be the third departure this year of the top executive for the main companies responsible for the majority of U.S. mortgage financing.
Yeah, ok. This has nothing to do with an impending explosion over there, right?
Herein lies the problem. The FHAs standard insurance program today is notoriously lax. It backs low downpayment loans, to buyers who often have below-average to poor credit ratings, and with almost no oversight to protect against fraud. Sound familiar? This is called subprime lendingthe same financial roulette that busted Fannie, Freddie and large mortgage houses like Countrywide Financial.
The FHA/Ginnie program has turned into a toxic waste dump, with the shysters from the Subprime world having moved over there. I know, I know, I get emails from the folks claiming otherwise all the time.
Uh huh. Let's list it.
Seller-funded down-payment assistance (which I characterize as fraud, since in reality its a discount on the asking price of the house, but heh, who cares about yet another scam?)
Back-end ratios approaching 50% in some cases, with over 40% approved in most cases. Remember, that's on gross income - now deduct taxes from the paycheck, a car payment, the utility bills and something for food, then tell me if the number you wind up with is positive or negative. Negative is bad, by the way.
Appraisals? What are those? There are now companies advertising that they can refi you into these programs with no appraisal in "some cases." How's that going to work out?
Here's my guess: The timer reads "XX:05" over there, with the "XX" blacked out in the window, and its anyone's guess whether the two "X"s are in fact zeros.
PS: If the FHA/Ginnie system blows on losses you can kiss goodbye and hope of anything approaching a recovery anywhere. You can bet they'll try to hide this one for as long as possible.
Where We Are, Where We're Heading (2013) - The annual 2013 Ticker
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