HARM

Is the FHA Effectively Condoning Mortgage Fraud?

<i>"The charge from Congress for HUD and FHA is to increase home ownership in the USA."</i>

Yes, and that very same "charge" was the whole purpose of founding the GSEs back in the 60s as well. And how well has this worked out for the American taxpayer?

Well, "homeownership" (or more accurately, LOANownership) recently hit an all-time high of 69% of U.S. HHs. Unfortunately, homeowner *equity* also hit an all-time LOW, despite the huge bubble-related gains: calculatedrisk.blogspo...

Then we have that whole "affordability" thingie. In my state (CA), the median house price-to-HH income ratio recently hit nearly 11:1, is still hovering around 10:1: calculatedrisk.blogspo...

And what was it before all these wonderful government affordability-promotin... behemoths were around, underwriting bankster risk, and touting their new "innovative" financial products (neg-ams, Option-ARMS, NINJAs)?: closer to 3:1. In line with the historical ratio recommended by fiscally conservative economists and your grandparents' local S&L.

God Bless the gub'mint and it's myriad of bureaucracies designed to "help" us.