Factually incorrect. What crashed the housing market was bad paper; unqualified people in mortgages that then got bundled and sold to this firm or that investor.
Absolutely, Some folks were not required to show a W2 or any sort of proof that they even had a job.. Or, so I've been told..
Dodd/Frank and Bush policies led eventually to the crash.
Several factors combined led to the boom and eventual crash.
Giving no doc and no money down loans was a huge part.
However, the biggest real estate booms and busts happened in the states like FL, AZ, CA where people had absolutely no recourse against them if they decided to back out of the loan. Just drop the keys off at the bank and walk away. Unlike other states where that bad paper can be sold to a collection agency and they WILL come after you for the loss. Forcing you to either pay or declare bankruptcy.
Exactly right. People lied and the economy died.
When Bill and Enola...who’ve been living out of their car for the last year and sleeping in Wal-Mart parking lots...can get a 100% loan on a $500K house...you know something’s bad wrong.
And then there were the homeowners treating their newfound home equity as an ATM (because of the rapidly rising market)...buying cars, boats and second homes. Then the rug was yanked out from under the housing market and boom, all of the nouveau riche are now nouveau bankrupt.