The FHA, created in 1934 to make homeownership attainable for low- to moderate-income Americans, is now providing a lifeline to new Manhattan luxury condominiums after sales stalled. Buildings featuring pet spas, concierges and rooftop lounges are applying for agency backing to unlock bank financing for purchasers. The FHA guarantees that if a homebuyer defaults on his mortgage, the agency will pay it.The FHA doesn't want there to be unfilled condominiums out there so it's moving into the priciest urban housing market to insure loans. Yup, that's just why FDR created the FHA during the Great Depression when the concern was to make homeownership attainable for low- and moderate-income Americans. Now we're helping out luxury condominiums. Remember this little story next time you hear about how the Obama administration is fighting out there for the little guy.
The world really is turned upside down.