November 23, 2008

FHA-backed loans: the next subprime crisis?

Within 12 to 18 months, ‘There is going to be FHA-insurance Armageddon’

As if they haven't done enough damage. Thousands of subprime mortgage lenders and brokers — many of them the very sorts of firms that helped create the current financial crisis — are going strong. Their new strategy: taking advantage of a long-standing federal program designed to encourage homeownership by insuring mortgages for buyers of modest means

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