Second verse, same as the first? The Washington Times sings a tired tune:So you thought easy-money mortgages with little or no down payment for people with bad credit was a thing of the past? Think again.
You can get just such a loan today - and it's guaranteed by the federal government.
Loans insured by the Federal Housing Administration (FHA) have become "the new subprime," and these loans are exposing taxpayers to the same kinds of soaring default rates and losses that brought down Fannie Mae and Freddie Mac as well as destroyed many banks and the private market for mortgage loans.
More...
The significant expansion and liberalization of FHA's loan programs is enabling Americans to go back to many of the same bad credit practices that analysts say were at the root of the housing crisis, likely feeding further waves of default and foreclosure. But this time it is the taxpayer - not the banks - who could end up holding the bag.
Compared to private banks--who as we know are capable of colossal blunders--the FHA is more likely to loan money to people with bad credit and previous defaults.
Hey, if the housing market collapses--again--at least the FHA can count on a bailout.
Bailouts are free, right?
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