HUD's Reply to My 'Fuzzy Math' Query
The folks at HUD felt that my blog of yesterday ("FHA Secure: Wait, How Do 600 Applications Become 35,000?") left out some key points, namely, their side of the story, so I am happy to post a reply directly from them:
FHA Secure is off to a strong start, and we’re on pace to help a quarter of a million families next year who need help before their teaser rates reset or have already reset and can’t make the new higher payments. Without question, more and more homeowners are attracted to the affordable, sustainable alternative that FHA Secure offers.
The relatively low number of delinquent borrowers coming to us is a positive sign that we’ve been effective in reaching out to families who need help before their teaser rates reset. Foreclosure benefits no one, and I don’t think the hundreds of thousands of homeowners applying to participate and the 48,000 families who have already closed on their FHA Secure-backed loans would question the benefits of this new and successful product.
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