There was an interesting article in the Wall Street Journal which you can find here - "Uncle Subprime".

Take a look at the article. It points out how seriously misguided our lawmakers are, and how completely unaware they always seem to be of the unintended consequences of what they do.

If this current proposal makes it through, expect to see the FHA program swirl down the drain just like subprime lending did. I've been watching some of the hearings on these issues and it is astounding how misinformed and often just plain stupid our lawmakers are. Anyone who watched them in action with any regularity would never pick calling the government in to solve a problem as their first choice. 

They spend a lot of time listening to groups like "Center for Responsible Lending" which according to Alan Reynolds from the Cato Institute actually received substantial funding from John Paulson - who just happens to have recently made between $3 and $4 BILLION shorting mortgage backed securities!!! 

For more information and updates regarding FHA loans, check out http://fhaloanadvice.com