Robert Toll, CEO of Toll Brothers home builders calls FHA lending a “train wreck”. He said that it will soon take the place of the subprime mortgage crisis. He anticipates FHA will soon be clamoring for it’s own bailout. FHA officials denied this.
The FHA’s insurance reserve ratio fell to 0.53 percent, the lowest level in history, and more steps are needed to shore up the agency that guarantees one of every five single family loans, Housing and Urban Development Secretary Shaun Donovan said Nov. 12.