NY FHA Mortage Lender Subpoenaed By HUD

Making the the guy who did the paperwork accountable makes sense to me. You are on your own.

Not really. Mortgage lender could have issued the mortgage according to docs but if FHA allows 2% down payment then a slight decrease in prices can cause default.

This time the taxpayer pays. Actually the first time the taxpayer paid, too.

pitchfork. There's always gaming the system. If the FHA/VA has four critera, there's always a fifth that pointed to a problem. This is exactly what wall street did with the rating agencies.

True, there's always a way to game the system. However, it matters how hard this gaming is. In case of FHA and the rating agencies, you mentioned, the system is setup to be 'gamed'.