FHA - For 78 Years, The Choice of White Trash for Mortgage Financing

"The government-backed mortgage insurer, which warned in last year’s report that its insurance fund was being drained, has raised premiums and tightened credit standards in an effort to avoid asking for a taxpayer subsidy.  Still, the improved quality of recent FHA-backed loans -- now comprising 15 percent of U.S. mortgages for home purchases - - may not offset continuing defaults from loans made from 2005 to 2008, said the people, who spoke on condition of anonymity because the report isn’t yet final."

To try to perpetuate the myth that borrowing money for the purpose of buying real estate is ALWAYS a move of sheer genius, FHA stupidly decided they were big and bad enough to step into the breach when the bubble burst and the smart money left town.