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...claims. For instance: how much money the agency can recoup from foreclosed properties, the growing social acceptability of borrowers' walking away from their houses and the chances that the riskiest loans in the market are finding their way to the FHA since it requires only a 3.5% down payment. Comparing FHA loans with a subset of those made by Fannie Mae (not a perfect analogy, considering that the FHA pretty much backs only 30-year fixed-rate loans), Pinto figures that the FHA will ultimately need tens of billions of dollars of outside funding to help cover its losses...

Author: /time Magazine | Title: FHA: Housing's Safety Net Begins to Fray | 11/14/2009 | See Source »

...housing agency start to pull back and force private players to resume responsibility for the loans they make? The FHA was founded in 1934 as a way to extend the prospect of homeownership to people who wouldn't otherwise be able to afford it. The agency's low down-payment requirement - itself the subject of some controversy - is designed to help deserving if underqualified people get a foothold in property ownership. The FHA was never meant to be the primary way America finances its home-buying. As it did in other times of real estate stress, the FHA steps...

Author: /time Magazine | Title: FHA: Housing's Safety Net Begins to Fray | 11/14/2009 | See Source »

...first blush, the notion seems like a win-win-win. Former homeowners get to stay in their houses; even if a mortgage payment isn't affordable, market rent may be. Neighborhoods ostensibly benefit too, since it's safer - and better for property prices - when blocks aren't full of foreclosure-related vacancies. And lenders? Turning properties into rentals until the market rebounds may sound like an appealing alternative to selling assets at cut-rate prices. "This is another tool to use, and it doesn't cost the government anything," says Representative Gary Miller of California, who has sponsored a bill...

Author: /time Magazine | Title: Renting Your House Back: A Solution to Foreclosures? | 11/12/2009 | See Source »

...film opens with the now familiar tale of unsupervised banking recklessness: banks steadily doled out an increasing number of subprime mortgages—loans made to consumers with bad credit. Many would then adjust the interest rates for select mortgages according to market fluctuations, demanding more and more payment from consumers unable to afford the escalating charges...

Author: By Kristie T. La, CONTRIBUTING WRITER | Title: American Casino | 11/6/2009 | See Source »

...basing its claim on a premodern cultural world where there was nothing like a modern state." Not only was Chinese control over Tibet thin until the 1950s, but Tibetan rule over Tawang was nominal as well. Beyond the appointment of certain abbots in monasteries and the occasional payment of taxes to Lhasa, the people living there "did not see themselves as part of a broader empire, let alone a Chinese one," says Dibyesh Anand, an authority on the region and a professor of international relations at Westminster University in London...

Author: /time Magazine | Title: Beyond India vs. China: The Dalai Lama's Agenda | 11/5/2009 | See Source »

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