This is a 3-year-old article, but as I have heard the arguments rebutted by this article repeated very recently, it is still very apt. Fannie Mae, Freddie Mac, and the Community Reinvestment Act did not cause the subprime meltdown. Greedy, dishonest bankers who cheated the system caused the subprime meltdown. I have seen the FHA approval process first-hand - there are no loopholes in place to slip a FHA loan to someone who is obviously going to default. The whole point of FHA is to allow RESPONSIBLE borrowers with less-than-stellar credit a pathway to home ownership.