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They have been suffering defaults on their book of ?enhanced? loans at multiples of the rate of conventional mortgages. In the heyday of mortgage silliness the MI companies were insuring up to 105% of the purchase price of a home or condo. ... FHA will have its hand out for a federal bailout by year end. None of the mortgage agencies have adequate capital for this type of underwriting risk. The joke is that they have no capital at all. The equity necessary to absorb the ...