Thursday, April 7, 2011
The FHA is the new Fannie and Freddie. Have we learned nothing?
Peter Wallison and Ed Pinto sound the alarm here. Will anyone listen? What have we learned if the government simply shifts the purchasing of bad mortgages from Fannie and Freddie to the Federal Housing Authority, which is what Dodd-Frank has done? Risky mortgages and shotty underwriting standards are bad bets no matter who holds them on their balance sheet. It is going to happen again and no one is trying to stop it.