The Federal Housing Administration (FHA) is the world’s largest predatory lender, underwriting unsound and irresponsible mortgages to millions of Americans.  Many of these homebuyers find themselves immediately underwater and with mortgage payments that are unaffordable.  As expected, FHA loans are defaulting in massive and increasing numbers. 

Government-insured loans now account for more than 40% of all mortgage applications up from 5.8% in 2005.  Presently, more than 14% of FHA mortgages are delinquent meaning that one in seven FHA borrowers is in some stage of foreclosure.  These figures will continue to deteriorate as abusive underwriting standards result in inevitable defaults.

Even scarier, the Federal Housing Administration’s 3.5% down payments are further destabilizing a dangerously leveraged housing market. 

The FHA’s insurance reserve ratio has eroded to 0.53% and will soon be exhausted.  Like its predecessors Fannie Mae and Freddie Mac, The Federal Housing Administration will fail and require a massive taxpayer bailout.  The only question is when will this inevitability occur?

Announcing the...

"When Will the FHA Fail?" Contest!


Send in the date you believe the Federal Government will bail-out the FHA.  The closest guess will win the contest extravaganza and claim the grand prize… An Affordable Mortgage Depression T-shirt!!!





This quirky, finely constructed bit of Depression memorabilia is stylish, makes an excellent dishrag and may be used as kindling in any emergency.


“When Will the FHA Fail?” Contest Rules

1.  All predictions must be emailed to dismalreality@gmail.com and specify a date upon which the FHA will fail (as defined by receiving a taxpayer bailout). 
2.  Guesses must be submitted 30 days prior to the FHA’s failure to be valid.
3.  Limit one guess per email account. 
4.  Once the date of a particular guess has passed, a new prediction may be submitted according to the rules above.
5.  Closest guess wins the contest.
6.  Each date may only be “owned” by one contestant.  Participants submitting redundant predictions will be contacted and may select another date that is at least 7 days removed from the original guess.
7.  The winner will be contacted via the submitted email address regarding size preference and mailing instructions.
8.  Any lack of clarity regarding the specific date of the FHA’s failure will be resolved at the discretion of the contest’s proprietor.    
9.  Rules subject to modest revision should strange or unexpected results occur. (such as unscrupulous Albanian upstarts spamming contest submissions on ghost email accounts)


A relevant historical AMD.com article: “The Coming Federal Housing Administration (FHA) Disaster” posted 4/3/09.