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Bigger Loans Performing Worse, FHA Told

Larger loans insured by the Federal Housing Administration performed worse than smaller ones, according to a study by the George Washington University Center for Real Estate and Urban Analysis, reports Housing Wire.

Larger loans insured by the Federal Housing Administration performed worse than smaller ones, according to a study by the George Washington University Center for Real Estate and Urban Analysis. The research indicated that larger loans—considered anything valued at $350,000 or more--are “likely to perform worse than FHA’s traditional market,” it expressed concerned that “the rapid increase in FHA’s market share will be hard to manage.” The study suggested that the FHA lower its loan limit, which is about $400,000 higher than it was in 2006.

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