“Uh-oh. Here we go again.”
Isn’t this how the whole housing mess started??? OMG! I can’t take this anymore.
Under Dodd/Frank the government will tell lenders what is a “Qualified Mortgage” and what and how and to whom they can loan money. Violations can punished with jail time.
At the same time, government has regulations and, er, strong recommendations, to lenders to lend to poorer folk - write a “Not Qualified Mortgage.”
It is not a good time to be in the mortgage lending business.
What is encouraging, if anything, is that there are still banks not in the government program, who can loan based on their own judgement. This Free World needs to increase and spread to all industries and communities.
A thirty year loan is 3.34% that is for everyone. The sub prime mess was that lower income people where given a higher credit score so they could qualified. Is Bernanke talking about a second loan to cover down payments? Or a low credit score should not pay a higher interest.