via The Hill: "The Federal Housing Administration, the next housing crisis?"

[Mitch H.]

The Hill: The Federal Housing Administration, the next housing crisis?

This article popped up in my feed this morning.  Have any of you guys read it?

I know a lot of people on here are huge proponents of FHA financing, especially in an owner-occupied house hack situation. There will always be flag throwers out there, but given the FHA's recent reduction of their mortgage insurance premium, it seems they will be that much more challenged to hit the 2% Capital Reserves required of them. Also, it seems to be in reaction to Private Mortgage Insurance taking away some market share.

There are definitely similarities to the subprime crisis in 2008...loosening of standards, huge growth, underfunded reeserves.  Can anyone provide some counter arguments or insight on the real consequences of this?