In the Washington Post last week, housing columnist Kenneth Harney took an interesting look at mortgage loans guaranteed by the Department of Veterans Affairs (VA).

VA lending presents a puzzle. How can a program where 91% of borrowers make no down payment, where borrowers have lower average credit scores than at Fannie Mae and Freddie Mac, and where borrowers' total debt load in some cases exceeds half of their monthly incomes, have a relatively low default rate?

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