And the link you provided (High Delinquency Rates Force FHA) is part of the shell game HUD has been playing. It's in their best interests for everyone to believe they are bleeding badly. Your chart proves my point, delinquencies and defaults are improving, cut in half since 2010. And FHA loans have always been a very small part of the defaults we have seen. FHA defaults represent maybe 1 in 20 that I run across. Almost all were IO or neg am or no doc loans.
Take a look where we were in 2010 by the very same report. Quite an improvement and now we are suddenly seeing a need to raise rates? They are funding multi family housing projects on the backs of single family loans.
http://portal.hud.gov/hudportal/docu...=DOC_16575.pdf