Les Kramsky, Esq., A Mortgage Banking Expert, Discusses The Future of the FHA

Florham Park, 03/08/2012 / SubmitMyPR /

Les R. Kramsky, Esq., the General Counsel to The Money Store and a Real Estate Attorney, is one of the most widely recognized leaders in the mortgage, title insurance and real estate industries. In the past Mr. Kramsky has served as the General Counsel to large real estate developers, real estate agencies and title insurance companies. In addition, Kramsky has been a partner in private practice for over twenty years specializing in real estate, mortgage banking, finance, compliance, contracts, leases, labor law, corporate law as well as the general practice of law.

As a Real Estate Attorney, Kramsky is a recognized authority on mortgages, title insurance and real estate matters and has been quoted in media outlets such as The New York Times, Wall Street Journal, Fox Business News, National Mortgage News, Law360, WCBS Radio, Corporate Counsel Magazine and Secondary Marketing Executive Magazine.

Is the Federal Housing Administration the solution to the current housing meltdown or the cause of the next one? Formerly an obscure agency with a limited mission — insuring mortgages with low down payments for creditworthy but low-income buyers — the FHA has filled the gap in mortgage liquidity left by the collapse of private-sector housing finance since 2008. According to supporters of the FHA’s expansion, its $1 trillion balance sheet represents the difference between the distressed housing market we have and the destroyed one we could have had. To critics, however, the use of the FHA to prop up a downward-spiraling real-estate market has set the stage for an inevitable taxpayer bailout.

Continued trouble in the housing market has further eroded the Federal Housing Administration's reserves, leaving it with a very thin cushion to protect it against future financial losses.

In a recent cover page article published in the Secondary Marketing Executive, Les Kramsky stated that "Unless the housing market really rebounds, I think the FHA is in trouble. I believe there is a good chance they will require some sort of bailout by the government; I think anywhere between $40 billion and $100 billion, depending on the housing market in the near future."