So, today the FHA is announcing that it’s raising its mortgage insurance premiums from 1.75 percent to 2.25 percent. Given that the agency’s reserves have fallen to .5 percent of its outstanding loans (Congress requires it maintain reserves equal to at least 2 percent of its liabilities), this seems like a prudent way to cut down on risk and raise some much-needed cash.

However, as angry commenters at the Wall Street Journal are pointing out, these premiums, which are paid upfront by home buyers when they take out an FHA-backed loan, can then be wrapped into said loan, which basically puts them back onto the agency’s books as a liability — more or less undermining the entire point of the exercise.

Anyway, we’re pretty sure everything will turn out fine.