Some time this fall the Federal Housing Administration should provide an update on how much cash is left in its depleted insurance fund. We assume the fund is still in the black, but analysts that work in the mortgage industry are extremely worried about the quality of loans insured by FHA in 2008 and the first-half of 2009. "The 2010 book-of-business is really good," said one source. FHA expects delinquency problems on 17 out of every 100 loans insured, said this individual, requesting his name not be used. There is a fear that FHA's projections might be a little bit too optimistic. Again, the concern surrounds government MI policies written in 2008 and 1H 2009…
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