This is a YouTube video titled "🚨 FHA Mortgage Insurance is strong 💪 🚨" featuring Jeff Booth explaining the role and current strength of FHA mortgage insurance in covering defaulted home loans and maintaining housing market stability, recorded in July 2021.
FHA mortgages carry the highest risk of default or foreclosure. Now, let's say an FHA homeowner does go into default on their home loan. That bank still needs to be paid back. So to do that, the FHA mortgage insurance covers that loan, pays the bank and lenders back, keeps the housing market strong. Now, it's super important to know that there's enough funds to cover that should something happen. The baseline they aim for is about 2% insurance versus the amount of loans in total loaned out after 2008. They spit through all that. They were at negative 1.4. They're back to 6%, so three times the amount they need. Housing market super strong. There is no housing bubble risk.
