Article Image
News Link • Obama Administration

Subprime Uncle Sam The FHA makes Countrywide Financial look prudent.

At a 50 to 1 leverage ratio, the FHA will soon have a smaller capital cushion than did investment bank Bear Stearns on the eve of its crash. (See nearby table.) Its loan delinquency rate (more than 30 days late in payments) is now above 14%, or from two to three times higher than on conventional mortgages. Its cash reserve ratio has fallen by more than two-thirds in three years. The reason for this financial deterioration

Join us on our Social Networks:


Share this page with your friends on your favorite social network: