Law Office of Christopher D. Hopkins
Law Office of Christopher D. Hopkins
Law Office of Christopher D. Hopkins
HomeReal Estate LawLand Use LawEnvironmental LawLaw Articles and NewsLaw ResourcesContact Christopher Hopkins
  • Tue January 21, 2014, 3:51 pm
    Site Remediation Extension of Time Bill Gives 2 Additional Years for Completion of Remedial Investigation of Contaminated Sites Two Year of Extension of May 7, 2014 Deadline For Completion of Remedial Investigation of Contaminated Sites For thos...
    [read more]
  • Mon November 4, 2013, 7:14 pm
    Compensation For Loss of Ocean Views Due to Protective Dunes Upheld Compensation For Loss of Ocean Views Due to Protective Dunes Upheld, Although Protective Benefit of Dunes Must Be Includ...
    [read more]
  • Sun September 29, 2013, 4:12 pm
    NJ Supreme Court Rejects COAH’s Third Round Regulations New Jersey Supreme Court Rejects COAH’s Third Round Regulations On Thursday, the New Jersey Supreme Court, by a 3...
    [read more]
  • Thu May 23, 2013, 10:28 am
    De Facto Merger of LP Into LLC Does Not Preclude Transfer of Prior Entity’s Rights May 23 2013 -In I/M/O Hazardous Discharge Site Remediation Fund Innocent Party Grant Application Cliflake Associates LLC...
    [read more]
  • Tue April 30, 2013, 8:02 pm
    NJ State's Energy Master Plan For Solar Incentives for Dumps and Brownfields - Slow Going According to an article on NJ Spotlight - The state’s Energy Master Plan wants to convert garbage dumps and brownf...
    [read more]
  • Mon March 25, 2013, 7:14 pm
    Hydraulic Fracturing Update New York Home Rule Power To Curb Fracking Upheld In Lenape v. Town of Avon et al., case number 1060-2012, in New York...
    [read more]
  • Sun March 24, 2013, 11:39 am
    Creation of Hydraulic Fracturing Performance Standards Shell, Chevron, the Environmental Defense Fund, the Clean Air Task Force, Consol Energy, the EQT Corporation, the Group ...
    [read more]
  • Tue March 5, 2013, 7:42 pm
    Zoning Protections Lost For Hurricane Sandy Damaged Structures Deemed “Totally” Destroyed The Appellate Division yesterday made it more difficult for property owners trying to rebuild after Hurricane Sandy. The...
    [read more]
  • Fri March 1, 2013, 2:17 pm
    NJ Court Holds That Age Restricted Development May Be Marketed With No Age Restriction March 1 2013 - The Court, in Sharbell Building Company, LLC v. Planning Board of The Township of Robbinsville, held that...
    [read more]
  • Tue February 5, 2013, 8:15 pm
    NJ Supreme Court Clarifies Requisite Nexus For Liability Under the Spill Act February 5 2013 - In NJ Department. of Environmental Protection v. Dimant, 212 N.J. 153 (2012), the New Jersey Supreme C...
    [read more]

View Archives

New Jersey Lawyers
RSS feed of The Law Office of Christopher D. Hopkins Twitter feed of The Law Office of Christopher D. Hopkins Facebook The Law Office of Christopher D. Hopkins
From the Aricle Archive
Delinquent Loans Draining FHA’s Cash Reserves

November 20 2012

 

The Federal Housing Administration (FHA) is expected to report  that losses on delinquent mortgages have drained its reserves and pushed the agency once again into a negative area that could require a cash injection from the U.S. Treasury for the first time in FHA’s 78-year history. That would mean that for the fourth consecutive year FHA’s cash reserves in its Mutual Mortgage Insurance Fund had fallen below the 2% capital ratio of total loans that Congress mandates the agency needs in order to repay claims on projected losses.
 
FHA guarantees about 15% of all US mortgages with outstanding balances and has been seminal during the housing recession in providing capital access for mortgages, specifically to first-time home buyers. FHA had projected last year that it would show a $9.4 billion positive value in 2012. And this year it has attempted to bolster its finances by increasing premiums and volume of loans. It also received a one-time payment of nearly $1 billion from mortgage services to settle foreclosure execution claims.
 
However, it is being reported that  as many as 25% of the loans FHA guaranteed in 2007 and 2008 are “seriously delinquent,” compared to about 10% of its loans insured in 2010.Some say that is because the loans FHA insures are too risky.  Borrowers with relatively low FICO scores (at around 660) have been able to secure a loan insured by FHA with down payments as low as 3.5%. The big question now is whether the Treasury will need to come to FHA’s rescue at a time when questions about the nation’s ongoing investment in housing continue to be raised. At the very least, HUD, which oversees FHA, finally might need to take a stronger stand on enforcing regulations that tighten the agency’s insurance standards and, as a consequence, limit mortgage availability.  

 

About The Law Office of Christopher D. Hopkins, LLC

The Law Office of Christopher D. Hopkins, LLC is a boutique law firm located in Scotch Plains, New Jersey committed to providing the highest quality of legal services in the select areas of real estate, land use and environmental law. The firm is committed to working collaboratively with clients to achieve practical, cost effective results- whether it be in complex litigation, transactions, cleanups and/or development projects. The firm provides transactional and litigation counsel to a broad spectrum of clients including private and public corporations, trade associations, nonprofit institutions, banks, real estate investment trusts and individuals in New Jersey, New York and Pennsylvania.

Contact Information

The Law Office of Christopher D. Hopkins, LLC
1812 Front Street
Scotch Plains, NJ 07076
TEL: 908.322.6121
FAX: 908.322.5701
Email: chris@chopkinslaw.com

 



Law Office of Christopher D. Hopkins
The Law Office of Christopher D. Hopkins, LLC 1812 Front Street, Scotch Plains, NJ 07076 || 908.322.6121