From The Washington Post, FHA delinquencies dropped significantly in February after several months of increasing. Definitely good news. Now we need more investors to get back in this market, the good signs keep coming.

The default and claims rate is now the lowest it has been since August, when the rate was 4.8 percent. The number of troubled loans fell from about 166,000 to roughly 162,000.

 

Brian Chappelle, a banking consultant and former FHA official, attributes the improvement partly to FHA's crackdown last year on abusive lenders. The agency banned 268 lenders from making FHA loans and suspended six other large firms. The enforcement actions prompted lenders to more closely scrutinize their borrowers, thereby helping FHA's loan performance, he said.