The failed mission of the FHA -- supporting high home prices rather than affordability

``How can anyone look at using a FHA insured loan above say $400,000 and say it is to encourage affordable housing?  The median US home price is roughly $170,000 so they should peg it to that.  Instead we have these products encouraging maximum leverage and default rates are soaring.  This is a big issue for California.  In fact, many of the recent underwater loans have come about because of the FHA''