A Farewell to Homes: A Drama by Barney Frank

Townhall.com ^ | June 30, 2011 | John Ransom

[geologist]

““Saving the necessary down payment has always been the principal obstacle to buyers seeking to purchase their first home. Proposals requiring high down payments will only drive more borrowers to FHA, increase costs for borrowers by raising interest rates and fees, and effectively price many eligible borrowers out of the housing market,” said Phipps”
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which is exactly the way the home market was in America for anyone buying a home during the 60’s thru 2000 or BIT BEFORE. Then they got creative with wrap around loans to cover the necessary down payments and so on and so on.

Why ruin a good suystem? When a person has a job, okay credit and a history of being a working individual, he/she is a good risk. Anyone that can not come up with funds for at least 10% down should not be buying a house. It demonstrates they are spending all their money monthly so there is no way for them to legitimately increase their out go expenses. SIMPLE. When one owns a home there are expenses on upkeep, repairs, needed improvements (fencing, landcaping, watering, window coverings, furniture) and so on. Easy to get overloaded.

The GI Bill and FHA did come in to guarantee or insure these loans good plan really. It worked until so many immigrants arrived needing housing and the government housing of Lyndon Johnson was a wreck and a big mess. They ripped the plumbing out of the walls to sell for drug money and such ...

[sportutegrl]

That ‘risk premium’ that people without 20% down pay. Would that be the PMI? Because I have paid that.

[Texas resident]

“Private property and respect for contracts helped build America.”
Private property and respect for contracts are also the keys to honorable business transactions and prosperity. Before frankendodd fouled up the whole housing business, property was purchased between two private parties. And the rule of law insured that he contracts were enforced.

These thugs have fouled up all of that.
It will take a hell of an effort to extract the feds out of the mortgage industry. Until then, it will continue to founder.

[Liz]

Let The Inquisition Start With Barney Frank
Investor's Business Daily | 3/6/09
FR Posted on 03/08/2009 by FreeManN

Congressman Barney Frank says he wants some of those responsible for our current financial meltdown to be prosecuted. And we couldn't agree more. First up in the court dock: Rep. Barney Frank, D-Mass. Even by the extraordinarily loose standards of Congress, it takes some chutzpah for someone such as Frank to suggest that he'll seek prosecutions for those behind the housing and financial crunch and for what he called "a strongly empowered systemic risk regulator." Frank: Fannie Mae and Freddie Mac's point man in Washington. For Frank, perhaps more than any single individual in private or public life, is responsible for both the housing market mess and subsequent bank disaster. And no, this isn't partisan hyperbole or historical exaggeration. But first, a little trip down memory lane. (Excerpt) Read more at ibdeditorial.com ...

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8-5-08----Village Voice
CUOMO AND BILL CLINTON CREATED CONDITIONS FOR MELTDOWN

Andrew Cuomo, the youngest Housing and Urban Development secretary in history, made a series of decisions between 1997 and 2001 that gave birth to the country’s current crisis.

He took actions that—in combination with many other factors—helped plunge Fannie and Freddie into the sub-prime markets without putting in place the means to monitor their increasingly risky investments. He turned the Federal Housing Administration mortgage program into a sweetheart lender with sky-high loan ceilings and no money down, and he legalized what a federal judge has branded “kickbacks” to brokers that have fueled the sale of overpriced and unsupportable loans.

Three to four million families are now facing foreclosure, and Cuomo is one of the reasons why. . . SOURCE http://www.villagevoice.com/2008-08-05/news/how-andrew-cuomo-gave-birth-to-the-crisis-at-fannie-mae-and-freddie-mac/

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Feb 8, 2010
Editorial, The Wall St Journal
FR Posted February 08, 2010 by The Raven ...

HUD's Web visitors learn that in 1999 "Secretary Cuomo established new Affordable Housing Goals requiring Fannie Mae and Freddie Mac—two government sponsored enterprises involved in housing finance—to buy $2.4 trillion in mortgages in the next 10 years. This will mean new affordable housing for about 28.1 million low- and moderate-income families.

The historic action raised the required percentage of mortgage loans for low- and moderate-income families that the companies must buy from the current 42 percent of their total purchases to a new high of 50 percent—a 19 percent increase—in the year 2001." ... (Excerpt) Read more at online.wsj.com ...

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REFERENCE Entitled, "Highlights of HUD Accomplishments 1997-1999," the document chronicles the "accomplishments under the leadership of Secretary Andrew Cuomo, who took office in January 1997."

HUD's Web visitors learn that in 1999: "Secretary Cuomo established new Affordable Housing Goals requiring Fannie Mae and Freddie Mac—two government sponsored enterprises involved in housing finance—to buy $2.4 trillion in mortgages in the next 10 years. This will mean new affordable housing for about 28.1 million low- and moderate-income families.

Cuomo's historic action raised the required percentage of mortgage loans for low- and moderate-income families that the companies must buy from the current 42% of their total purchases to a new high of 50%—-----a 19% increase—in the year 2001."