There was a whole lotta buzz today about this WSJ editorial that warns of huge impending risks at Ginnie Mae, the organization that bundles and sells loans backed by the Federal Housing Administration. The editorial argues that the FHA, which claims that it "costs the taxpayer nothing"
Well, the FHA does not itself originate mortgages, however it backs mortgages originated by a variety of "FHA-approved" lenders. FHA loans (which kind of became an anachronism during the
For single-family homes, FHA evaluates only the lender and the borrower - as long as the buyer qualifies for an FHA-backed loan from an FHA-approved lender, the mortgage is good to go, regardless of the property. For condos, the situation is different. The FHA must actually approve the underlying condo building itself. You cannot get an FHA-approved loan in a building that is not itself FHA-approved. So...can you get in on this racket in downtown Manhattan?
Well, it turns out that unlike every other mortgage
Stay tuned though, lots of stories out there about developers just itching to get in to the FHA pipeline, although none so far in Lower Manhattan.