Very insightful.
The Department of Justice is investigating numerous homebuilders over fraund with regard to FHA financing. Specifically, fraudulent practices with regards to loan underwriting and appraisal.
For example, a homebuilder qualifies buyers who can't really afford the house. In addition, they build the financing into the house price. Hence, whole new-build neighborhoods are experiencing substantially higher-than-average default rates.
Shameful lending practices. And we haven't even touched "subprime" or "predatory" lending practices. We are getting more and more like Russia and China all the time!