All with Fannie Mae loans, of course. Details at the Housing Bubble Blog. The time for lawmakers to make it clear that they are not going to bail out Fannie is now. The time to abolish Freddie and Fannie is also now.

UPDATE: Does the existence of Fannie make fraud more likely? Yes, because Fannie gets its political support by claiming that it is responsible for the ever-growing percentage of Americans who own their own homes. If that percentage doesn't keep growing, Fannie loses its key p.r. point. Therefore, Fannie has the incentive to look the other way regarding loose lending standards, fraud, etc., to ensure an ever-growing mortgage market. A day of reckoning will come some say, but everyone seems to expect that the taxpayer will bail Fannie out.