More FHA-Backed Mortgages Go Bad Without a Single Payment

WaPo reported Many borrowers are defaulting as quickly as they take out the loans.

That means that people are borrowing with no intent to pay, and fools are loaning them money. Both should be prosecuted.

In the past year alone, the number of borrowers who failed to make more than a single payment before defaulting on FHA-backed mortgages has nearly tripled, far outpacing the agency's overall growth in new loans, according to a Washington Post analysis of federal data.

Many industry experts attribute the jump in these instant defaults to factors that include the weak economy, lax scrutiny of prospective borrowers and most notably, foul play among unscrupulous lenders looking to make a quick buck.

Prosecute the lender, and the person that took out the loan with no intention to pay.

If a loan "is going into default immediately, it clearly suggests impropriety and fraudulent activity,"

Precisely. They are expecting the government to bail them out.

said Kenneth Donohue, the inspector general of the Department of Housing and Urban Development, which includes the FHA.