FHA Lending Over Backwards

Forbes reports:

At the height of the lending frenzy in 2006, the proportion of loans insured by the FHA dwindled to a mere 2% of the market.

Now, lenders have nowhere else to turn. According to the Mortgage Banker’s Association, 30% of all July loan applications had FHA backing and, without a means or credit requirement, it’s the riskiest borrowers who are being shunted onto the government's books.

The government is the problem in the housing market.