You would have to expect for the default rate to go up today considering that default rates have gone up on all credit.

I do find it kind of funny that a lot of people have talked about how ridiculous some of ‘those crazy sub-prime loans’ were, but you never hear anybody mentioning ‘how crazy the FHA products are.’??? And NOBODY talks about how crazy the c.r.a. products were.

I think the fact that government product is really the only product for high LTV today (and that’s the one in most demand) will cause the FHA to develop some real legitimate qualifying criteria like the rest of the lending world had (i.e. real matrix, credit scores, rate premiums, etc.). We’ve already seen some of it with the use of credit scores. They have to, otherwise default will continue to rise. They will eventually realize that there are reasons why banks have criteria and that there is actually some actuary somewhere crunching enough figures to know where they need to be. They’ll get it together.