Chicago Tribune (10/03/08); Harney, Kenneth R.
Mortgage industry, home building and real estate experts are expressing concern over whether the Federal Housing Administration will be able to handle a rapid increase in loan volume during a tightened credit market. The FHA has become the primary source of mortgage financing for borrowers who do not have at least 20 percent to put down on a home purchase, as new loan volume has tripled over the past 12 months. Also, the government has charged the agency with refinancing the loans of struggling borrowers to help keep them from losing their homes to foreclosure. According to Steve O'Connor, senior vice president of the Mortgage Bankers Association: "You just can't expect to fit that amount down the same size pipe—you've got to expand the size of the pipe" by funding additional staff and upgraded technology at the FHA.
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