Posted on 01/27/2015 10:15:40 AM PST by Oldeconomybuyer
WASHINGTON — Mortgages with low down payments can be just as safe if other underwriting conditions are met, a federal housing regulator said Tuesday.
Mel Watt, the director of the Federal Housing Finance Agency, was testifying in front of the House Financial Services Committee, after Fannie Mae FNMA, +0.47% and Freddie Mac FMCC, +0.47% both started making mortgages available to those who make down payments of just 3%.
That has raised the ire of Republicans, who say the move risks a repeat of the housing bubble.
“All things being equal, is a 3% down loan riskier to the taxpayer than a 10% down loan,” asked Rep. Jeb Hensarling, the Texas Republican who is chairman of the House Financial Services Committee.
(Excerpt) Read more at marketwatch.com ...
Here we go again. Don’t they ever learn?
Because housing values will always go up.
The Silent generation (those about 75-85) are dumping their homes. The boomers are downsizing. Gen X is stuck in homes underwater from the last crash. Millennials are so burdened with student debt they will not be able to afford a home for another 10-15 years.
What could possibly go wrong?
Obama opening up the floodgates for 2016.
Lucy’s holding the ball for Charlie Brown to run and take another whack at it so she can watch him miss and go flying and land on his back. Lucy and the government think it’s so much fun to see that.
Probably, but from the article this move isn't the one that will do it. They seem to be insisting on fairly strict credit score and income requirements for the 3% down mortgages. The thing that will create another spate of junk mortgages being issued and another bust when they aren't repaid will be when some future 'Rat controlled Congress or 'Rat administration looks at the program and decides that not enough "people of color" are qualifying for 3% down mortgages and forces the stricter credit conditions be dropped to remediate the "disparate impact".
Don't they ever learn?
No.
Oh, it’s really worse than you think.
The new regs are pretty much the epitome of Isaiah 5:20...
Those with good credit (800+) are subject to regulations that prevent them from getting loans on investment properties,
while those with 600 credit ratings get approved at 97% LTV.
Just opening the door for foreign investors and interests to snap up American real estate at fire sale prices. Oh, and those interests pay CASH.
Time for Americans to meet their new landlords.
3% 10%? Where? I haven’t seen less than 20%. Maybe if you’re the ‘right’ color....?
Would a prudent man...
Howabout a scuzzy politician...
Would you believe an 0bamite following orders?
It’s official: Obama to direct FHA to cut mortgage insurance premiums
Yes, ‘safe’ and ‘sound’ just like they were the last time around. Good grief!
Remember that the whole purpose of these financial games in Washington and in the banking industry is to prop up the values of these homes so the underlying mortgages retain their value. This is how you end in a bizarre situation in some metro areas where empty-nester Boomers are living in homes that have a “market value” of $500,000 or more, but nobody can afford to buy them.
Time once again for a mortgage collapse, tanking the economy, then blaming the GOP.
I know of areas all around Houston where 3 years ago people couldn’t sell their homes for $200,000. Now they’re getting up to $500,000. I know of a neighborhood of new homes that started in the 90s in 2009 that was starting at $160,000 when they finally sold out. It’s crazy.
I’m also seeing more and more “for rent” signs in my neighborhood. That ain’t good.
Fortunately, unlike most “boomers” I have been in my house. It was a house I bought that below my means.
Of a lot of financial decisions I made in my life, this one was one of the best. Buy it. Make it nice. Stay in it.
I dont look at my house as an “investment”, but rather it will be a nice place to live when I dont have a mortgage.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.