The move this week by Congress to expand federal backing of mortgages via the FHA caused me to envision "Uncle Sam" printed in red at The Mortgage Lender Implode-O-Meter.
Apparently someone at the Wall Street Journal has the same idea:
We wonder if either end of Pennsylvania Avenue grasps the irony of what they are proposing. At the very moment when private mortgage lenders are under pressure from regulators, rating agencies and shareholders to tighten underwriting to avoid another mortgage meltdown, the FHA is relaxing its standards so it can insure more questionable mortgages. If that is permitted to happen, America's newest and largest subprime lender will be Uncle Sam. Don't expect this story to have a happy taxpayer ending.