ARM Borrowers Seek Rescue from FHA Program.(Managing REO)

Byline: Jennifer Harmon

Dallas-Lenders across the country are making FHA a product of choice. But a high percentage of loan originators in the mortgage industry have only been in the business for three years, according to industry insiders who say these originators don't have experience with the product.

Rodney Anderson, executive director and senior managing partner of Rodney Anderson Lending Services here, says it is crucial that they go through extensive training to learn more about FHA before offering it to consumers.

"The borrower requirements and work to complete these transactions is much more than a lot of loan officers are used to. Some have never known the documentation environment," he said.

The good thing is that lenders who have been doing FHA for years are being rewarded. Mr. Anderson said FHA and VA have done tremendously well in recent months and Texas consumers are taking advantage of interest rates at a 37-year low.

Based on loans he originated in December 2008, new mortgage activity doubled when compared to loan activity from December 2007. Mr. Anderson originated 331 pre-approvals in December 2007 and 683 in December 2008. And while many see this as a refinance boom, he says it's important to note that a significant portion of those loans - roughly 7 out of 10 - were going to individuals purchasing new homes.

"Despite the stagnation we're hearing about in the retail and automotive sector, there are still individuals out there who are buying homes and taking advantage of lower rates in this buyer's market," he said.