Professor Green Comments on FHA Lending Program for Comstock's
Professor Lawrence Green commented for Comstock's magazine on the Federal Housing Administration's lending program, which is accounting for a larger share of the mortgage market in the wake of the fiscal crisis that has severely impacted many lenders. The FHA has announced policy changes to strengthen lending guidelines including higher mortgage insurance, bigger down payments, and increased enforcement for lenders.
The FHA, Professor Green said, "has become essentially the 800-pound gorilla in housing finance." In commenting on the changes, Professor Green stated, "I would say they're just acting prudently and responding to what the marketplace is today and what they expect it to be in the future. For the lending industry, I think the effects are positive to the extent the FHA has tried to balance supporting home ownership with managing their credit risk."
Professor Green, a Legal Research and Writing professor at King Hall, was formerly counsel for the California Land Title Association (CLTA) where he represented the title insurance industry in California. He is a member of the Real Property Law Section of the State Bar and a contributor the California Real Property Journal.