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FHA Loses $4.6 Billion - Denies Insolvency

Like someone else already commented- no surprises here. I don't believe that sub-prime FHA loans are in concept such a terrible idea. It is the process they have in place to qualify such loans. The few banks that have done their home work and really spent the time investigating whether or not a client is a good risk, are doing just fine. It just so happens that those banks are holding onto the loans for the duration as well. FHA was the lender of choice for many that couldn't qualify else where and now they are paying for it.