by Amy Konstas

I learned in the Federal Housing Policy Committee meeting that FHA loans now make up 15-20 percent of the mortgage market. It’s estimated in August these loans may comprise about 40 percent of the entire market. Overall, the FHA culture has changed for the better, and FHA loans are now very valuable business and a good opportunity for REALTORS®.

More borrowers are being reached in terms of eligibility to get a loan, which is good, and the introduction of foreclosure prevention plans by Democrat Senators Barney Frank and Christopher Dodd would also help alleviate trouble within the housing market. But principal reduction must be addressed for loans already underwater.

A Q&A session followed.