The caption in bubbles to this oped is – “Meet the federal subprime lending programs.” I remember the day last year when the annoucement came out saying that the gov’t was going to up the FHA insurance limit to $719,000 from $319,000 as a ‘solution’ to the mortgage crisis. In fact I may have even written about it. For the full scoop you have to read the piece, but bottom line, the problems with FHA loans are going to be huge and costly. I recently read in a report that came from T2 Partners LLC the following statistics: nearly 8% of mortgages on 1-4 family homes were delinquent or in foreclosure at the end of 2008, 24% of homeowners with a mortgage owe more then the home is now worth and among people who bought homes in the past 5 years, 30% are underwater. This housing problem, and the losses associated with it, are so far from over.