The scandals have been swirling HUD Secretary Alphonso Jackson for quite some time. I have been wondering if this looming situation might have been a problem in getting FHA modernization accomplished. It seems that it would be a little difficult to lobby legislators while they are publicly calling for one's resignation. So now we have the Secretary's resignation.

Of course, as you may have been able to see from blog at FHA Loan Advice, I'm not even sure now that I really want to see FHA "modernized". We had a system that was experiencing declining foreclosures even in the face of the catastrophes going on in the mortgage business today. Now, in the face of a barrage of half put together loan files being sent in by people who only care about getting the deal done and collecting their checks, and not about the quality of their business, we are facing a tightening of the guidelines that is going to force a lot of good borrowers out of the home buying market.

It is going to be interesting to see what happens now with all the legislation in progress.

Everybody has been screaming for the government to "do something".  We may end up regretting it.