FHA and Ginnie Mae - the next problem children ? (loans, foreclosure, credit)

[HappyTexan]

Will it never stop ?

FHA and Ginnie Mae: The Next Fannie and Freddie - WSJ.com

"The FHA now insures $560 billion of mortgages—quadruple the amount in 2006. Among the FHA, Ginnie, Fannie and Freddie, nearly nine of every 10 new mortgages in America now carry a federal taxpayer guarantee.
..
If housing values continue to slide and 10% of FHA loans end up in default, taxpayers will be on the hook for another $50 to $60 billion of mortgage losses.
..
Then there is the booming refinancing program that Congress has approved to move into the FHA hundreds of thousands of borrowers who can’t pay their mortgage, including many with subprime and other exotic loans. HUD just announced that starting this week the FHA will refinance troubled mortgages by reducing up to 30% of the principal under the Home Affordable Modification Program. This program is intended to reduce foreclosures, but someone has to pick up the multibillion-dollar cost of the 30% loan forgiveness. That will be taxpayers.
..
All of which means that the FHA and Ginnie Mae could well be the next Fannie and Freddie. While Fan and Fred carried “implicit” federal guarantees, the FHA and Ginnie carry the explicit full faith and credit of the U.S. government."

[70Ford]

FHA may not be up to new job: Save housing, mortgage markets - Apr. 10, 2008
Last Updated: April 10, 2008: 11:45 AM EDT

Been talking about this for over a year...and it's just a big 'ol balloon....waiting to pop.
The number was about 2000 million less then, though.

[floridasandy]

What's more, the loan limit on FHA loans was increased in March, which will further expand FHA's portfolio.

Two of the leading Congressional Democrats, House Finance Chairman Barney Frank and Senate Banking Chairman Chris Dodd, proposed legislation that would have the FHA back an additional $300 billion in refinanced mortgages.

we have the same 2 crooks trying to jump start an artificial housing market on the taxpayers' backs again! why aren't they in jail instead of being allowed to try to inflict further potential damage on taxpayers?