By Daily Crux Editor Brian Hunt:

Meet the next Fannie/Freddie mortgage boondoggle: The Government National Mortgage Association, or Ginnie Mae.

Ginnie Mae has been around a long time. But it has been growing like a weed in the wake of the enormous Freddie/Fannie debacle. The taxpayer-owned entity is expected to have exposure to $1 trillion in mortgages by the end of this year.

Of course, this program is a bomb waiting to explode. The loans Ginnie Mae packages and guarantees are issued by the Federal Housing Administration (FHA). A sane private lender requires a traditional 10%-20% down payment before making a loan. This greatly prevents defaults. The FHAs down payment requirement? A tiny 3.5%.

Read full article...

More on mortgage boondoggles:

Another $200 billion bailout heading for these gov't agencies

How Obama's new mortgage program could DESTROY your credit

Dan Ferris on a huge potential financial disaster around the corner...