FHA Reform Act of 2010, just passed, your mortgage insurance to triple

Yes, the FHA needs money so they just got congress to pass FHA reform act of 2010 no even taking into consideration that most mortgages in the US are already facing bankruptcies.

The FHA are now to increase your insurance premium from .55 to 1.55 depending of the value of your home this could be increases of to 200 dollars a month for some home owners.

www.congress.org...

Starting sometime later this year, the monthly cost to carry an FHA-insured mortgage is expected to rise.

In a near-unanimous vote, the House of Representatives gave the FHA power to raise the monthly mortgage insurance premiums it charges to its borrowers.

Currently, monthly mortgage insurance premiums are 0.55% of the unpaid loan balance, divided by 12. The recently approved Federal Housing Administration Reform Act provides for an increase in monthly premium of up to 1.55 percent, among other details of the bill

realestate.bryanellis.com...

Just the first on the line of more taxes and increases that we all be facing next year or earlier, wait when the forced HCR comes around and the taxes to pay for it.

Is going to be very hard to live in the US anymore.




[edit on 15-6-2010 by marg6043]

Is this for new loans or existing as well?
I have a FHA loan. How is it they can raise the rate to something I already signed on for?

reply to post by lardo5150


I was thinking about that same thing, I could only imagine that is for first time owners.

But I can not find where it said that is for only new home owners and refinancing of existing homes under FHA.

Hopefully you be safe, but is going to be very hard to refinance you home as soon you do then it will apply to you.

leaving the US keeps getting more tempting everyday.

What an act of idiocy. You're right, this will raise the default level to new highs on FHA home loans. Just when people need more help than ever the government kicks them right in the teeth.

I saw NOTHING about this on the news. This is major national news and nobody covered it. This incestuous relationship between the media, congress and the multinational corporations needs to end!

This reminds me of the wreck of the Medusa, where shipwreck survivors who had weapons began eating the other passengers who were unarmed.
The TV preachers who have the temerity to call America a "christian nation" are either lying their collective asses off or are alseep. That is, if christianity ISN'T supposed to be cannibalism.

::wags finger at Congress::

[edit on 15-6-2010 by Asktheanimals]

reply to post by Asktheanimals


I agree, the only reason I knew about this is because I get E-mails by congress org. to keep me informed on what legislations are been passed in congress and about to pass.

Specially if you want to keep tracks of how your local government is working for you or against you.

This like a bailout for the FHA as they are strapping for money.

Just gouge the consumer with the blessing of our whores in Washington.

Knowing very well that people are in financial troubles in this economy that actually started with the mortgage blunder of greed.

Many people look into refinancing in order to get relieve from bankruptcies but now if you are to finance under the FHA you will be tagged an increase in insurances.

WOw..This sucks...Im in the process of closing on a FHA loan. We close June 30. Hope this doesn't affect me. at .55% I would pay around $200 a month and at 1.55% I would pay around $550 - 600 a month. Thats a huge increase..

reply to post by marg6043


Wow that is painful.

But I guess they're getting it in place before the rates go up again. That is going to drive foreclosures through the roof.

reply to post by Alchemst7


Just make sure that you close your loan with the old percentage, don't let them make you sign into having the increase, read the fine print.

Just for the sake of irony, I offer this thought to everyone:

We are talking about services charges. These people are not selling you the house. They are not paying for anything. They are simply increasing the amount of the premium you HAVE to pay if the bank is to consider approving the loan.

Pure banking profit. Nothing other than a 'promise' to insure your loan FOR THE BANK'S BENEFIT; should you default in the future.

If you DON'T default, they get to keep the money.

Isn't that nice for them?

Here we thought we were done bailing out poor fiscal management in the finance industry....

You know, soon you'll have to have yourself 'insured' before the bank will do anything for you. And the bank will be the beneficiary of that insurance.

Must be nice to have a monetary monopoly.

reply to post by Maxmars


Yes, this is happening since the mortgage crash, fines, fees and services, now in my neck of the wood BofA will not finance any loans that doesn't have their own brand of insurance mortgage attach to it, because in "case you default".

Is getting hard to buy homes now a days, many other financial institutions wants to attach all kind of insurances, for fire, some mandatory flood even if you house and area has never been flooded before, just for the "in case".

Tragic.

reply to post by marg6043


GREAT TIMING:

The FHA rates are jacked up three times ahead of the displacement of folks from the gulf region.

I never understood mortgage insurance.

I get health insurance to pay my medical bills.

Car insurance to pay for repairs and liabilities.

Homeowners insurance to replace or repair the home.

So you'd think mortgage insurance was there to pay your mortgage or at least act as a line of credit to pay your mortgage in case you lost your job or something.

Well, it's not. Mortgage insurance in absolutely no way whatsoever insures you or your mortgage.

As it was explained to me by a mortgage lender the whole thing is a complete scam to get more money from you. With it or without it you still get the boot if something happens and you cant pay.

A completely worthless product for the consumer yet "mandatory" for many loans.

I like this imaginary status of "mandatory." How do I get to decree a status of "mandatory" on things? I guess if I had enough prisons, money and guns I could get away with it. Oh, and enough morons supporting me in power.

reply to post by thisguyrighthere


Why do you think America as a nation have not collapse yet, because in America our government just passes the burden of the nations debt to its citizens and the unborn and let the nest generation worry about it

But now is getting worst, because corporate America is been allowed to do the same, no only getting tax payer bailouts, incentives and free give away but also they can pass their own debt into the consumer



[edit on 15-6-2010 by marg6043]

Amazing what a little sleight of hand will get you.
Look over here in my right hand while my left hand picks your pocket.

It is bills and legislation like this that should get every American up in arms!
I don't know what it's going to take to uproot the idiots in power right now, but if we keep procrastinating, we are all going to suffer.

This is pure BS through and through.

I am more than angry and saying I'm fed up is being modest.
What really scares me is the distraction taking place to keep Americans at bay.
Almost like Congress knows we won't do anything about it so they keep shoving these atrocities down our collective throats.

I feel like I am yelling at a brink wall, though.
It's a plain fact that we (Americans) won't stop our never-ending chase of the elusive 'American Dream' to even stop this madness...
You can't physically get people to stop working for FEAR of losing what they 'own'.
You can't even ask citizens to gather in the millions and march!
That's effectively what we need. A REAL million man/woman march on DC.

It's getting way out of hand, been that way for decades, and we think voting will change DC.

Unfortunately, we are wrong.

The EVIL that is prevading our existanceIS money......
It is not called to root of all evil for nothing...
Until we come up with a different modus operandi well continue to be stripped bare for the sake of corporate profit.....
Evil people DIE!
Evil corprations go on for EVER!