This is the kind of thing that would make me apoplectic, if it were not for the fact that I am jaded by the constant and shameless govt raiding of my pocket to pay for other people’s subsidies.
If you had to pick out one single factor in mortgage lending that makes the difference between loans that are repaid and loans that are not, it would be the amount of real money of their own the buyer uses to pay for the house. Yet, in the middle of the biggest meltdown in the mortgage market, after the biggest housing bubble in recorded history, our govt – Congress, Administration, and Fed – is still encouraging, even arranging, loans with hardly any money down, and sometimes none.
If we passed a law requiring that all home purchases must be made with at least 20% provided by the buyer, from their own funds, no games, then our housing market would be 90% cured.
