This is a NO SHIT SHERLOCK moment. As this site has said it time after time, it’s a crime to lend money today very well knowing the housing values are depreciating!

FHA caters to first time buyers and this includes no ownership in a principal residence during a 3–year period. This also caters mainly to those who don’t have any money… sounds a lot like the subprime market, now doesn’t it?

This is deliberate F R A U D and another bailout coming your way.

REUTERS-

More than 1 million Americans who have taken out mortgages in the past two years now owe more on their loans than their homes are worth, and Federal Housing Administration loans that require only a tiny down payment are partly to blame.

That figure, provided to Reuters by tracking firm CoreLogic, represents about one out of 10 home loans made during that period.

It is a sobering indication the U.S. housing market remains deeply troubled, with home values still falling in many parts of the country, and raises the question of whether low-down payment loans backed by the FHA are putting another generation of buyers at risk.

As of December 2011, the latest figures available, 31 percent of the U.S. home loans that were in negative equity – in which the outstanding loan balance exceeds the value of the home – were FHA-insured mortgages, according to CoreLogic.

[REUTERS]

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