FHA - Making Shoehorn Mortgages So You Can Live Next to Deadbeats

3.5% Down

"The serious delinquency rate for Federal Housing Administration mortgages reached 9.6% in December, the highest level in more than two years, the Department of Housing and Urban Development said."

Housing Wire

9.6% - Wow.  It must be nice working for Uncle Sam in the Lending Game.  Back here in the real world, if you make shitty loans that jack up your 2+ month delinquency rate to a 9.6% level, you usually get a pink slip, a firm handshake and an escort by security as you clean out your desk and pack a box. 

In recent news, there was an e-mail written by an employee within S&P stating that "it could be structured by cows and we would rate it" (S&P rating on mortgage backed securities that revealed themselves over time to be worthless).  In the case of FHA qualified mortgage originations, it would appear that those loans could be structured by cows, underwritten by cows, approved by cows, made by cows, signed by cows and recorded by cows and FHA would still buy them up en masse to prop up housing "values" (whatever the fuck that word is supposed to mean anymore).