The Federal Housing Authority ( Fha )

The Federal Housing Administration (FHA) is a government entity established by the U.S. Congress in 1934. The FHA aims to help potential borrowers (with lower income) qualify for mortgages. The FHA became part of the Department of Housing and Urban Development (HUD) Office of Housing in 1965.

The Great Recession of 2007-2009 was one of the most economically disastrous events in American history. The housing market took a significant downturn during this period. People were not cautious when it came to their money and loans. Larger loans were given out to people, even to those with bad credit and low incomes. These large loans caused many homes to go through foreclosure since people were unable to pay off their mortgage debts. These debts were created by banks increasing the interest rates on the loans significantly in a short period. In 2008, foreclosures were up by eighty-two percent. This increase is significant because the previous percentage of foreclosures was at fifty-one percent from 2007. Unemployment skyrocketed, and people

Department of Housing and Urban Development (HUD) and conducted by the U.S. Census Bureau (Census) have collaborated to create the American Housing Survey (AHS), the most comprehensive national housing survey in the United States, providing data used to monitor and assess housing supply and demand.

And men like Morris Goldseker took this opportunity to buy the homes for practically nothing, then flip them for a profit to African Americans. This was a practice known as blockbusting, because the real estate person would be selling blocks at a time at the rate white families were fleeing from the city. And although Goldseker would later claim that he was fair and just with his prices, policies and practices regarding home sales, there is no doubt that he pulled huge amounts, like all blockbusters, by spiking the prices when selling to minorities.

The housing crisis of the late 2000s rocked the economy and changed the landscape of the real estate business for years to come. Decades of people purchasing houses unfordable houses and properties with lenient loans policies led to a collective housing bubble. When the banking system faltered and the economy wilted, interest rates were raised, mortgages increased, and people lost their jobs amidst the chaos. This all culminated in tens of thousands of American losing their houses to foreclosures and short sales, as they could no longer afford the mortgage payments on their homes. The United States entered a recession and homeownership no longer appeared to be a feasible goal as many questioned whether the country could continue to support a middle-class. Former home owners became renters and in some cases homeless as the American Dream was delayed with no foreseeable return. While the future of the economy looked bleak, conditions gradually improved. American citizens regained their jobs, the United States government bailed out the banking industry, and regulations were put in place to deter such events as the mortgage crash from ever taking place again. The path to homeowner ship has been forever altered, as loans in general are now more difficult to acquire and can be accompanied by a substantial down payment.

Whether under the Fair Housing Amendments Act of 1988 (FHA), which makes it illegal to discriminate in housing on the basis of an individual’s handicap, Ms. Mary Land, the widowed owner, manager, and landlord¬¬ of a historic building with Tiffany stained glass transforms, extinct pinewood flooring, and mahogany woodwork¬, violated the FHA by refusing to rent an apartment to Mr. Jim Rent, a potential paraplegic tenant with acute transverse myelitis (ATM), when enforcing a first-come first-served parking policy, where there are only three allocated spots available to the nine apartments, and a no-pets policy, where Ms. Land had an allergy and a tenant potential could go into anaphylactic shock, where Mr. Rent required access to a dedicated parking spot for his specially-equipped van, which allowed him to use his mobility device the iBOT™, the use of a medical alert response companion dog (MARC dog), that was certified, prescribed, and trained to assist Mr. Rent with his daily routine, and needed to make structural modifications to the apartment and bathroom, in order to insure his mobility and safety in the apartment, even though Mr. Rent, six months prior, had a history of leaving items on the stove, causing fire alarms to go off notifying the fire department, and leaving water running in the bathtub, which lead to several floods of his apartment requiring new flooring and carpeting.

     What is happening is that there are some unethical lending practices that are threatening the housing industry as a whole. The concern involves the practices of some sub-prime lenders. These practices are considered to be “predatory” on consumers. Sub-prime lenders offer home loans (Equity Loans & 1st Time Home Purchase Loans) to moderate to lower income families. These clients are considered to be high credit risk borrowers, also know as B-C-D credit clients. Interest rates and other loan terms generally cost more than those paid by clients served by prime lenders with better credit records (A credit clients). Sub-prime borrowers end up paying more simply because the risk of loan repayment is fundamentally higher than that of a prime market borrower.

In the year 2000, the stock market crashed whichshifted thepeople’s money away from the stock market and into the housing market. Many people were buying homes, which led to banks offering more loans, including subprimed loans. Most loans, specifically, subprimed loans began going into default once the credit markets froze in the summer 2007. Things began to deteriorate rapidly. The offering of subprimed loans stopped completely and interest rates for other types of borrowing such as corporate loans and consumer loans rose dramatically. Since the interest rates of loans were so high, home owners were not able to afford to make payments, which caused them to be evicted from their homes. In 2013, the government introduced new laws and

The Federal Housing Administration, otherwise known as the FHA, is a government agency created to help alleviate the case of homelessness in the country. The agency is under the authority of the Department of Housing and Urban Development (HUD), set up in 1934 after the Great Depression. The primary purpose of establishing the FHA is to oversee different insurance programs for single family mortgages, insuring mortgage loans provided by HUD-approved lending institutions. In order to get FHA loans, buyers are required to have a satisfactory credit rating and make a down payment.

The Federal Housing Administration (FHA) Program standardizes construction of houses and insures loans for building homes.

The demand for houses, along with a belief that home values would continually soar, fueled the building boom that would eventually result in our demise. Once the grace period on mortgage loans ended, and house prices began to decline, many people found themselves unable to escape the high monthly payments and began to default. Increasing foreclosures continued to lower the prices of homes, by 2008 it was estimated that 23% of all homes were worth less than their mortgages. 2.9 million vacant homes later, it is safe to say the consequences of short-sighted expenditures were severe. Since then, more than 6 million Americans have lost their homes to foreclosure. Much of the blame for the housing crisis can be traced back to rumor in the stock market. While homes are not typically viewed as investments under speculation, statistics show that this was not the case during the mortgage crisis. 22% of homes purchased in 2006 were for investment purposes.

Brooklyn, NY – December 30, 2009 Foreclosures continue to rise drastically across the United States due to the recession, and have effected, and continue to affect thousands of families and individuals every day. One aspect we must take into consideration is that most people are not informed of what foreclosure means, or the process, even those who are homeowners. I believe that one step to preventing foreclosure is to educate first-time homebuyers. In addition, first-time homebuyer programs should not only assist potential buyers with financially preparing them to buy a home, but to keep the home once

The FHA is a federal loan program that grants mortgage companies and offers mortgage insurance for the home loans extended by those loan providers. Should you wish to have the most safeguard for your mortgage loan, getting a mortgage loan from an FHA authorized lender can present you with a clear measure of protection. The FHA was developed because of a need. It sets the prerequisites and regulations that lenders must adhere to eligible for the

With all of the incentives and mortgage products given so easily to people that couldn’t afford the high prices (including interest rates), many people defaulted on their first mortgages because they were no longer were able to receive the profit from the homes they first intended to flip. “During the first quarter of 2008, nearly 9% of all mortgage holders were delinquent or in foreclosure, the highest rate since recordkeeping began in 1979. Foreclosure filings more than

Establish Credibility: According to US News, the great American dream of owning a home appears poised for a comeback. Real estate company Trulia reports that in many parts of the country, rents are rising while housing prices are falling, making buying a home more affordable. Trulia found that in 98 out of 100 major metropolitan areas, including Detroit, Atlanta, and Cleveland, buying has become more affordable than renting.” I think the mortgage catastrophe of 2001 left prospective home buyers afraid of buying a house without being extremely certain that is the right decision.