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There is, Chris George tells us, some good news and some bad news to share about the immediate future of the mortgage industry. The good news is that the FHA is not going to run out of money and will keep offering home loans with an attractive downpayment. Further, the quality of the business and the underwriting at the FHA is at a higher level that it has experienced before. The bad news? That putting all of our proverbial eggs in the FHA basket means that we won’t be seeing some much-needed alternatives from Fannie Mae or Freddie Mac, whose performances have been anemic.

Chris, a director of the California Mortgage Bankers Association and the president of CMG Mortgage, is looking forward to the day when Fannie Mae and Freddie Mac step back into the first and second positions as the preferred places to go for conforming loans. He is also watching the clock to see when the Federal government starts moving out of the center of the real estate recovery, allowing the private side to reestablish its footing in the marketplace.