Skip to comments.Zero-down mortgage initiative by Bush is hit
Posted on 06/10/2012 8:10:22 AM PDT by WilliamIII
President Bush's weekend campaign promise that he will push legislation allowing for no money down on some federally insured mortgages could cost taxpayers as much as $500 million over four years because of a higher rate of defaults, according to the Congressional Budget Office.
The election-year idea may appeal to those who can't save as fast as home prices are rising. But some financial planners warn that increasingly common no- and low-down-payment programs can be ruinous for some consumers -- especially if home values decline.
If housing prices fall, consumers with little or no money of their own invested in the home are more vulnerable to ending up with mortgages larger than the value of the house.
(Excerpt) Read more at boston.com ...
Why is this relevant today? Because I want to make sure that conservatives don't give Romney the kind of pass they gave Bush when he governed like a liberal. If conservative had criticized Bush's liberal policies when they were happening -- instead of treating him like a deity along with "that magnificent bastard" Rove, -- we might never have had the recession, and Obama might never have been elected.
I’M CALLING BULLSH**T.
The ‘Housing Bubble’ was in trouble long before this. Or have YOU already forgotten that the massive mortgage frauds were already unhinging the system by this time?
The problem wasn’t helping people get homes. The problem was government FORCING banks to loan money to people who shouldn’t have had one in the first place, BASED ON RACE, not credit!
Or have YOU already forgotten “Red-Lining”, and all that other crap?
After checking your posting History, I SMELL TROLL....
The problem wasnt helping people get homes.
Yes it was - to the extent the feds were helping people who couldn’t get downpayments to buy homes. That’s what Bush did. You are willfully blind if you think his no-down-payment program didn’t get people into houses who couldn’t afford them.
But there are none so blind ...
After checking your posting History, I SMELL TROLL....
So, instead of addressing the issue, you’re shooting the messenger. I smell BushBot.
Sorry buddy, but I am a veteran. If I choose to use my VA loan with 100% financing, you bet your a@# I am going to use it.
IIRC, this started under Clinton with the “Community Reinvestment Act” (CRA).
It pretty much forced banks to make housing loans to folks that would never, ever have qualified otherwise.
Those folks, naturally, had trouble keeping their mortgages up to date and thus the trouble began.
This was not good policy but a tiny part of the problem that led to the housing bubble bursting. The bubble was bing built for a decade previous to this decision. Bush had a core ,estate that home ownership growth created an ownership society. True in principle, but using bad policy to expand home ownership doesn’t accomplish the goal he laid out. The ‘affordable housing’ efforts of the left to push people who could not qualify otherwise as the bigger issue.
Nice try, agitprop. It is you who tries to twist the reality to fit the talking points you’ve been sent out to issue in order to substantiate the deception your little barry bastard commie president floats. Underwriting is not Bush’s responsibility. regulators are the cause of a capitalistic system failing, government regulators. The bank can maintain a fiscally sound lending mortgage system with zero down loans if the underwrtiign is handled appropriately because the property is the collateralization for the mortgage sustained by the earning ability of the borrower. The farming industry worked for decades on that premise. But you want to support the specious deceptions of little barry bastard commie so you try to deceive FR readers and then try to deflect when you have over exposed your agenda here.
More like an obamanoid stench ... and it uses the classic Axelrod whine trying to hide its real face.
Sorry buddy, take your “BushBot” bullsh** back to Daily Kos, where they actually swallow loads like that.
Google “Redlining”, “Jesse Jackson” and “Community Reinvestment Act”, then get back to us, K?
This has been WELL documented on FR over the years.
Start HERE, although this only searched back to 2008, for some reason:
Common sense says that there should be no 100% financing without absolutely perfect credit. Things really got out of hand when banks started giving loans and credit cards to illegals , without even a SS number.
Nope, what you smell is ozone.
Idiocy. The banks weren’t allowed to see if a person could REPAY the loans....NINJA loans....NO INCOME, NO JOB, NO PROBLEM!!!
How soon people forget Bush’s ‘ownership society’ which grew the mortgage problem. He was forgiven so much because of the R after his name: the Patriot Act, the TSA, pushing amnesty for illegals, calling those who wanted secure borders vigilantes, TARP, flooding the country will ‘guest workers’, creating Homeland Security via EO, no child left behind ...
Whether R or D, we need to be so vigilant.
True enough, but the OP simply said W had a role in the collapse, and to keep pressure on Romney, because he won't be any better. W's terrible economic policies also created the environment for a huge collapse.
Who would have thought that giving $500,000 mortgages to illegals making minimum wage would be a problem??
Indianapolis alone had over 1,000 homes involved in two HUGE Mortgage Fraud schemes, that paid inner-city druggies $500 bucks to sign mortgages on inner-city homes, that were sold over and over again, with ever-increasing mortgages, until it fell apart in 2002-2003.
That was just ONE medium-sized U.S. city. This ACORN-enabled fraud was repeated, time and again, in cities across America, especially Baltimore, Philly, Detroit, etc.
Must be “BOOSH’S FAULT!(tm)”, Right?
The California housing market began coming apart during the CLINTON RECESSION in 2000. Or have you forgotten about that?
Like I said, dude’s a troll.
Sorry UC. Last comment wasn’t directed at you.
“Things really got out of hand when banks started giving loans and credit cards to illegals , without even a SS number.”
You can thank Bank Of America, under pressure from Pelosi, Boxer, LaRaza, and other California Dems for that one.
Remember the “Hispanic Banking Crisis!” from Circa 2004, and the Kerry run for President?
And you wonder WHY BofA has needed two huge government bailouts?
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