The FHA, which now controls an incredible 30 percent of the mortgage market, is looking to raise fees and possibly down payment requirements.

This is big. The FHA needs cash. Its reserves are dangerously low. But it’s also a critical part of a still fragile housing market.

P.S. Hedge funds are contributing to the FHA’s woes. They profit–and taxpayers get stuck with the risk.

File under: It’s deja vu all over again.