Luxury builder Robert Toll says the Federal Housing Administration (FHA) is a train wreck waiting to happen.
If he’s right, that’s bad news, because the FHA has played a huge role in buoying the housing market in recent months.
The agency insured lenders against mortgage defaults on 20 percent of homes bought in the last year.
The problem is that it requires down payments of as little as 3.5 percent.
“Yesterday’s subprime is today’s FHA,” Toll Brothers CEO Robert Toll said at a recent conference. (more)
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