Theory on mortgage fallout

Does anyone remember several years ago certain groups crying about discrimination in that certain segments of the population were being denied mortgages? The real reason these people were denied is because they had crappy credit-not because they were black, hispanic, etc. THEN the banks and government relaxed the rules, so what happened? Defaulted loans, DUH!

I can't remember the source, but a report said the percentage of government backed mortgages requiring little or no down payment and minimal
qualification, rose from 7% to 30% in the recent past. Couple that practice with homeowners treating fast-rising equity as their personal ATM and
finally the inevitable end of the surging sellers market. What accountant wouldn't see the piper coming for his due? But the politicians for the "little guy"
won a lot of elections via the scam. A lot of captains of industry made a bundle navigating this Titanic. And plenty of predators ate well at the closings
and re-financings. A fine mess.


-Phil

You guys have the gist of it. The governmental players are keeping a low profile. Lots of contributions from Freddie and Fanny. Also, note the complainers now. A couple of the most verbal blamers were supposed to be regulating the outfit; Namely Frank and Dodd.

Nothing down is a good deal for speculators. Buy a house and re-sell. If the price goes up you made something. Price goes down and you can't make payments? Just walk away.

Hummm, I see the clock is a bit off for me. I posted about 10:15 AM Sept. 29.

I think my clock is off too. This will tell. I stopped in from work so have to go now.

Terry, at least we are in the same time zone.