Thursday, November 19, 2009

FHA, The Next Bail Out?

Yesterday remarks from Robert Tolls, CEO of Tolls Brother, about FHA reaffirmed my view that FHA is a government backed sub-prime lender and is due to fail. Providing a 3.5% down payment and promoting 27.5x leverage ratio is not a rational way to promote home ownership. I mentioned that in early July. Robert worried that “Yesterday’s subprime is today’s FHA” and so should you and I, the tax payer.

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