Easy-Money Mortgages Still Provided by Feds - Troubling

(Washington Times) 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. While private lenders learned a lesson from the mortgage crisis and are shying away from easy-money loans, the FHA has stepped into the breach. The agency has provided backing for 37 percent of all mortgages used to buy homes this year. ....