New Wave Of Federally-Backed Mortgages Go Bad Without A Single Payment

04/07/2009 05:12 am ET | Updated May 25, 2011
  • Dina ElBoghdady and Dan Keating Washington Post

This decade's housing boom rendered the agency irrelevant. Americans raced to aggressive lenders, seduced by easy credit and loans with no upfront costs. But the subprime mortgage market has crashed and borrowers are flocking back to the FHA, which has become the only option for those who lack hefty down payments or stellar credit. The agency's historic role in backing mortgages is more crucial now than at any time since its founding.

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