FHA Has Stepped Into The Low/No Downpayment Void--But Not At No Cost

``The FHA default rate is now approaching 10 percent.  Instead of stepping in we have another Fannie Mae and Freddie Mac on our hands.  Why is that?  Because home prices continue to fall.  With shadow inventory set to begin its purge in 2012, lower priced distressed homes will push prices lower.  Many that bought in 2009, 2010, and 2011 have seen their equity washed away especially if they bought with a FHA insured loan and went in with the typical low down payment.''