See U.S. Department of Housing and Urban Development (2010), “FHA Announces Policy Changes to Address Risk and Strengthen Finances,” press release, January 20; and U.S. Department of Housing and Urban Development (2013), “FHA Takes Additional Steps to Bolster Capital Reserves,” press release, January 30. 8  These quotes assume that the borrower supplies a 10 percent down payment.
It may even swing back too far and overshoot like exchange rates tend to do. Unfortunately, there is no Prozac to alleviate post-bubble blues. An in-depth analysis of the data may help to clarify the picture. The situation is better than the sombre mood suggests, although admittedly not as good as we had hoped for.