Chris1206

Disquieting Mortgage Trends in JP Morgan, Wachovia Results - Housing Tracker

FHA will be the government's cash cow. Every FHA loan has an upfornt mortgage insurance premium payment (UFMIP) of 1.5% of the loan amount that goes immediately into the US Treasury. Until 2005, that amount could be partially refunded to the borrower if the loan was paid off or refinanced. Today a client only gets his partial refund if he refinances the loan (and pays the new amount of UFMIP) into another FHA loan. This doesn't even address the .5% of the loan amount that is collected annually in the borrower's monthly payment. Has anyone seen an estimate of estimated revenue for FHA?