If we are talking about FHA as a countercyclical force, what, in fact, we saw in the early part of the 2000s, and leading up to the crisis, was FHA following the market as-- and racing to the bottom in terms of underwriting standards.
McHenry criticizes FHA's underwriting standards leading up to the financial crisis.
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We need to get to the bottom of whether or not this is a supervisory problem, a regulatory problem, a bank mismanagement problem, perhaps all three.
I think the viable question for the American people is whether or not you have a progressive prosecutor using the justice system to go after political enemies for a political splash.
This is a matter of real substance for the independence of the Fed and the rulemaking at the Federal Reserve.
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