“I don’t think it’s a bad thing that the bad loans occurred. It was an effort to keep prices from falling too fast. That’s a policy.”

Barney Frank, chairman of the House Financial Services Committee on recent FHA lending.

The quote is from David Streitfeld and Louise Story’s article in the NY Times: ‘U.S. Mortgage Backer May Need Bailout, Experts Say’.

File Under: Congratulations to our official new housing policy — let’s make a bad loan!