I’ve noted elsewhere that Congress has lost a decade in much-needed progress toward reforming housing finance. Indeed, much of what has happened has gone in the wrong direction. The Federal Housing Administration (FHA) has regularly tried to cut premiums to lure more risky buyers into the market – despite the fact that it is not adequately capitalized. The Credit Risk Transfer programs were supposed to move default risk away from the taxpayer and toward voluntarily supplied private capital, but have disappointed at best.
Source: American Action Forum