Tell It To Al

Thank you for your column about the Citigroup All-Stars! As usual, you were right-on. In my market area there are many senior citizens who (heaven forbid) qualify for Reverse Mortgages. These toxic mortgages are the equivalent of institutionalized Strategic Defaults. Thanks to FHA (& some conventional lenders) there will lots more poorly maintained homes on our block. Lenders forbid appraisers to say that a home lacks “pride of ownership”, as this would be “racist”. If you no longer own your home (you signed away your equity), would I be a racist to mention a lack of “pride of ownership” as your formerly beautiful home starts to decay? Would I be too judgmental if I said FHA will end up owning an old piece of junk that the government will have to rehabilitate, just like an ugly foreclosure, in order to sell it below market? Why are we allowing FHA and conventional mortgage companies to write such toxic paper? (Do not think that FHA’s desire to require residents to “maintain” their homes has any value at all. I’m a retired appraiser and I am very familiar with FHA proeprty requirements.)