Lost in the confusion that I caused last week ["He Said, She Said" Pipeline, May 27] by citing the dollar volume [of FHA loans insured] rather than focusing on the far more important statistic (homebuyers helped) is the fact that the FHA insured 33% more purchase transactions in the first quarter of 2010 than Fannie Mae and Freddie Mac combined.

This is not a one-time aberration. The FHA insured almost as many purchase loans as the two GSEs combined did in 2009 and insured more purchase loans than the GSEs did in the last 15 months (2009 and the first quarter of 2010). Moreover, the GSEs have telegraphed in their most recent 10-Qs that this gap [between the volume of loans they insure and the amount the FHA insures] is likely to widen unless they change their pricing policies.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.