Ed Pinto of the American Enterprise Institute, another accurate forecaster of FHA woes, reckons total agency loan delinquencies as of September 30 at 17.3%.
"All deposit insurance is a moral hazard, and brokered deposits are a moral hazard, squared, " says Alex Pollock, a former head of the Federal Home Loan Bank of Chicago and now a fellow at the American Enterprise Institute.
Alex Pollock of the American Enterprise Institute thinks that securitisers should be required to guarantee the quality of their loan pools, as are America's government-sponsored mortgage giants, Fannie Mae and Freddie Mac.