Somebody was selling FHA subordination agreement at the baseball game. The FHA subordination agreement allowed a CLTV higher than 100%. I said this will never work. The FHA title company must prepare the FHA subordination agreement and the lender who is direct endorsement underwriter will never allow an fha subordination agreement purchased at a baseball game.
This went on for a few hours and the FHA lender talked to the fha umpire who said that the fha subordination agreement was sufficient for closing an fha loan as long as the loan was not insured by HUD. Well....I said....that doesn't make it much of an FHA loan afterall. You can keep your fha subordination agreeement in that case. I'll take my CLTV elsewhere.
"Get your FHA subordination agreement!", we heard as we left the baseball game.
Who was playing you ask?
Fremont Investment & Loan v. Alphonso Jackson.
This is indeed a strange post about the fha subordination agreement.