The move this week by Congress to expand federal backing of mortgages via the FHA caused me to envision "Uncle Sam" printed in red at The Mortgage Lender Implode-O-Meter.
Apparently someone at the Wall Street Journal has the same idea:
We wonder if either end of Pennsylvania Avenue grasps the irony of what they are proposing. At the very moment when private mortgage lenders are under pressure from regulators, rating agencies and shareholders to tighten underwriting to avoid another mortgage meltdown, the FHA is relaxing its standards so it can insure more questionable mortgages. If that is permitted to happen, America's newest and largest subprime lender will be Uncle Sam. Don't expect this story to have a happy taxpayer ending.
9 comments:
Can you email me directly?
How are you getting this data if you aren't a Realtor?
How are you able to search via Keyword?
And lastly, go to namecheap.com and buy your blog site name. Otherwise somebody else might. And I can show you how to make your blog a domain name for free on blogger.
The FHA should be the most important subprime lender. It's an obligation of government to help those most in need. Especially those willing to take on the tough responsiblities of being a homeowner. Of course, I can't see the bubbleheads understanding this. They probably feel that they should be rewarded for their lack of responsibility.
Oh I see now, Lance is a liberal/communist. He believes the government should give people houses and everyone pays a share of it equally. Yeah it would be something if your neighbor made insulin and you paid chickens for it. But I do not believe in such welfare. I think we should feed the children of habitual gamblers, but I do not think they deserve a McMansion because of thier illness.
John: "Oh I see now, Lance is a liberal/communist."
Lance has in the past talked about how pleasurable and satisfying it would be to kick out some renters and to see them on the road with their "meager" belongings.
He supports such Fed action only because he thinks it will help him retain his home's bubble value.
"The FHA should be the most important subprime lender. It's an obligation of government to help those most in need. Especially those willing to take on the tough responsiblities of being a homeowner. Of course, I can't see the bubbleheads understanding this. They probably feel that they should be rewarded for their lack of responsibility."
More of the same from lance...
The "government" has an obligation to provide money to people with bad credit so they can buy things they can't afford, so long as it props up the housing market so lance can continue to live out his delusion of wealth.
Btw, those who are looking at buying a house are NOT those "most in need" and artificially inflating the housing market is not going to do any good in the long run.
Lance still doesn't seem to understand that the housing bubble was not a "good thing." Housing is a cost and generally isn't a good investment. Artificially high housing prices forced huge numbers of people to overpay for housing.
The only reason lance wastes his time(and ours) on this board is because he thinks he stands to gain personally from high housing prices.
Who doesn't want to be rich right? Lance thinks he hit the jackpot because his house's paper value is high. He may need to house multiple renters to make ends meet...but he is rich don't you understand? A landLORD!
You can't take that away from him. Housing prices must stay high.
Lance,
Do these "tough responsibilities" include paying back a mortgage one signed on for?
http://tinyurl.com/ypszg6
Harriet asked...
"Lance,
Do these "tough responsibilities" include paying back a mortgage one signed on for?"
Of course. And that is precisely what the "assistance" being proposed is going to make possible. I realize bubbleheads like to think otherwise, but all one needs to do is read what is being proposed and it becomes clear that nothing is being given away other than "support" via debt restructuring. I.e., the borrowers will stay be paying what they owe. There are no free rides in society.
"Of course. And that is precisely what the "assistance" being proposed is going to make possible."
Puhleeze. Expanding FHA and raising FNMA and FMAC limits simply redirects capital away from uses that an actual free market would value more highly. And that makes everybody a little poorer. It's still a bailout; just one designed to fool the gullible, as Lance demonstrates for us all.
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