The amazing expansion for FHA mortgage lending throughout 2008 was achieved mostly as a result from from the eroiding financial condition of the private mortgage insurance companies.  For the first time in over 20 years, are reporting that FHA loans have become a major force for home financing.

HUD’s FHA mortgages maintained a record 69% of new primary mortgage insurance written during the 4th quarter of 2008. That is the FHA loan product’s most significant share in the mortgage market in many years.

The Obama administration unveiled its $75 billion Homeowner Affordability and Stability Plan earlier this month. The home refinancing programs will enable some homeowners to refinance their mortgages into lower-cost, thirty-year or fifteen-year loans featuring fixed interest rates by making mortgage compnaies Fannie Mae and Freddie Mac refinance those mortgages that they have securitized on Wall Street.