Fha Warns It Can't Take Risky Loans ; Down Payment Woes Indicate Future Issues.

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WASHINGTON - Losses from home loans that depend on seller-funded down payments are hurting the Federal Housing Administration, its chief said yesterday. He called on lawmakers to address these risks.

"Data clearly demonstrates that FHA loans made to borrowers relying on seller-funded down payment assistance go to foreclosure at three times the rate of loans made to borrowers who make their own down payments," said Brian Montgomery, FHA commissioner.

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Fha Warns It Can't Take Risky Loans ; Down Payment Woes Indicate Future Issues.

These loans account for one-third of FHA's portfolio, he said, adding that no private mortgage insur...

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