Posted on 08/06/2010 8:33:00 PM PDT by smokingfrog
What could go wrong? From the Washington Independent:
“Buy new with $1,000 down,” the advertisement says, the words resting atop a trim green clapboard house offset by a bright blue sky. “The time has come. Stop wasting rent check after rent check and start building equity in your own home. And with only $1,000 down, affordable monthly payments and no private mortgage insurance required, the dream is closer than you think.”
It sounds too good to be true. But it is true. This offer does not come from a subprime lender, looking to reel in thousands of unqualified and ill-advised homebuyers, only to slap them with add-ons, fees and variable rates. It is not a teaser or a trick. The advertisement references a program initiated by the National Council of State Housing Agencies and Fannie Mae, the taxpayer-backed, government-sponsored enterprise that buys up mortgages from lending banks.
The Federal Housing Authority already offers mortgages for just 3.5 percent down — a program that now accounts for one in five U.S. home loans (link thanks to The Atlantic’s Megan McArdle) — but apparently the geniuses at Fannie Mae didn’t think that was enough of a taxpayer subsidy. Perhaps they were giddy at the prospect that the taxpayer bailout for them and sibling agency Freddie Mac will end up costing “only” $150 billion or so, although Fan alone still has nearly $220 billion in bad loans on its balance sheet.
(Excerpt) Read more at blogs.ajc.com ...
Disgusting!
Utter idiocy......
Isn’t this the same bull**** that brought us to where we are right now? Damn DemocRATS!
If they can offload them, great. We see our liabilities as taxpayers decrease.
And if the buyer can't keep up the payments, I suppose they just revert back to the Gov't which has made some money (down payment, payment on principal, etc,) though I don't know the details on how that works.
In order for an administration, in line with “social justice” concepts of redistribution, to redistribute wealth in the form of property, the govt. must obtain title to private property in order to redistribute it.
The subprime mortgage tool of practically nothing down to borrowers who are NOT expected to pay, provides the eperfect mechanism to transfer otherwise private mortgages, when foreclosed upon, to government hands (Fannie and Freddie) including the Fed Reserve through its purchase of Agency bonds.
The deliberate accumulation of private property by this mechanism seems designed only to serve the interests of “social justice” which seems to mean the redistribution of ALL wealth in the US, not just formerly private property.
The costs of the transfer are to be born by the taxpayers themselves being deprived of their property.....the amount is in the trillions.
THANK YOU SIR, MAY I HAVE ANOTHER?
THANK YOU SIR, MAY I HAVE ANOTHER?
THANK YOU SIR, MAY I HAVE ANOTHER?
THANK YOU SIR, MAY I HAVE ANOTHER?...
Shhh! No one is allowed to say that. We are only permitted to blame unspecified "Bush policies" that somehow "got us into this mess" and we are not permitted to dispute our Dear Leader when he makes this claim.
This is deliberate. I have a difficult time believing it’s because someone is unqualified.
Obama won’t be able to hide amongst 99 other senators this time.
Failed policies of the past.
bingo
Yes it does come from a subprime lender. The worst of the subprime lenders.
They're doing exactly what got us into this mess in the first place. Again...
insanity. We are intent upon being a society enslaved by debt.
“WE” are NOT...but, SOMEONE (or some group) is...
Are these guys on crack?
It would be cheaper.
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