You should be posting this to your blog, because the information itself is important enough that it should stand on its own.
One of my BFFs is a national FHA VA lender, and although I did not know this, it does not surprise me because the borrowers are vetted very carefully before pre-approval.
In 10 years working with them, I don't recall a single deal we've ever closed go into default.

There is also a period where so many consistent payments have to be made to have the full insurance in place.

Now I get FHA delays! You should totally post this to your blog - this is information that would help agents understand the process as well. 

I did not know Khash, this topic will be great for a blog.

Really? Wow...

Khashm

I was not aware of this. A

I had no idea of the specifics, but it makes sense for a lende to be extra cautious. It is also a protection for the borrowers, in a way, to keep them from getting into a situation that would be detrimental to them down the road.

This would make  a great blog. Many buyers and also buyer agents do not know this. I have worked the mortgage side of things too which makes it easier to understand the whats and whys some days.

I did NOT know that.  Great blog topic, Khash. 

Some people are lucky that their closing in only delayed as opposed to being rejected. Not everyone should qualify for a loan. Some companies take risks only to face the consequences!

Hi Khash... I had no idea. Wow! So important to know.

Was not aware, thanks for sharing!

I didn't know that.  Very interesting & a valuable accountability factor.  

I wish the feds would get out of the lending business.

wow.... that delinquency is not in the control of the lender....why are they penalized?  alot of situations happen within 2 years....

I know there are guidelines and lenders are measured on defaults ... and that is not just with FHA, I understand it. 

Lesley Wilson-VanGoethem nailed this one!

Yes & what to do about it?  You can only check so much & abuse the underwriters.

I have heard this, Khash Saghafi . The lender needs to make sure the buyer is qualified.

Great information to have for reference. 

I had no idea.

Did not know that. I would like to see the source document.

I wish we knew how many.

I take it this is a current law and not something that was in effect before the last Great Recession!!?

Thanks Khash

Did not know about this.  Interesting. Thanks for sharing this info.

I enjoyed reading this and the comments by other Active Rain members.

Wow, I need tro let my lender know that ,  thanks

Wow, did not know that.

Khash Saghafi - frankly, I did not know this.

I'm not a lender.

Well if that is strue most of the bnaks should have clsoed years ago!

No I wasn't aware of this. Is it really true? I'm sure that extenuating circumstances would protect the lender.

  Fascinating fact!  

Thanks for sharing this perspective.

If you do blog about this make certain to also explain the conditions that would compel the 'bank' to buy-back the mortgage from FHA. That is the real issue.

Never heard of this ?

Smaller banks are loser on loan requirements....

Was not aware of that.  We don't get many FHA or VA loans out here.

I was not aware. As others said, this is important information and deserves additional explanation and exposure.

Is this really true? -Kasey

Is this an example of unintended consequences?