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FHA, ‘The New Subprime,’ a Blessing and a Curse for Lenders
With the secondary market unwilling to purchase subprime mortgages this year, lenders looking to make loans to lower-credit borrowers have turned to the FHA. The program does not have a minimum required credit score, making it a good outlet for such production, but many are far from happy with “the new subprime.” A number of subprime lenders have migrated to FHA lending and admit that they...
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