Posted on 06/08/2013 2:29:35 PM PDT by whitedog57
I attended a conference in New York City on Thursday regarding the future of housing finance. While all the proposals were interesting, I asked if this will mutate into another Obamacare debacle at 13,000 pages or the 1,000 page plus immigration bill. And I warned that government policies will assert themselves to control and manipulate whatever is decided, regardless of how ironclad one thinks it will be.
As an example, I mentioned the recent story where millionaires wanting to buy a home on Martha’s Vineyard are eligible for a zero percentage down payment mortgage from the USDA!
The US Department of Agriculture has designated the entire island is as a rural area eligible for a USDA loan.
Martha’s Vineyard is a rural area? Vacation area for Wall Street, celebrities and politicians (like the Obama’s) perhaps. Of course, one of the costs of living on Martha’s Vineyard is the possibility of having to hear James Taylor warbling endlessly.
Of course, the recent “Farm” Bill was 80% of $955 Billion for funding of food stamps.
This is why I am not confident of a “solution” to the government-backed housing finance system. There is always someone saying “But shouldn’t lower and middle income families have the opportunity to buy a home on EXPENSIVE vacation spots like Martha’s Vineyard?” You mean, renting isn’t good enough?
That is the flaw in government mortgage programs. Government could insure prime mortgages (10% or more down, credit scores of 660 and above, etc) and have everyone else rent. But the “affordable” housing advocates want taxpayers to subsidize risky lending.
Martha’s Vineyard and affordable housing? Oh please.
Eliminate the USDA. Idaho happens to have its own department of agriculture. We don’t need you.
The CRA isn’t finished with driving down America.
Just for general information, this has been going on for some time (at least several months that I know of). And it’s going on about 90 miles an hour. Two people I know involved in home sales, one buying, one selling; the buyer offered a USDA loan, the seller is selling to someone through a USDA loan. And yes, no money down. What can possibly go wrong?
There are many areas covered by these USDA loans - all zoned rural. There are income limitations to qualify.
The gov’t wants to have all the mortgages.
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.