FHA is increasing lending to riskier borrowers

Risky loans – is it a sign of the top of the market?

Does this type of lending increase risk the repeat of the last market bubble?

Comment with your thoughts.

Citing rising risks among the mortgages it’s backing, the FHA announced earlier this year that it was changing some of its lending rules to increase the prevalence of manual underwriting to try to decrease the risk in its portfolio. And it seems like those changes may be more than warranted, because new data released Friday shows that the FHA appears to be loosening its lending standards and backing loans for increasingly riskier borrowers.

Source: FHA is increasing lending to riskier borrowers | 2019-06-07 | HousingWire