As a taxpayer, I don’t want to be that smuck [sic]. So I’d actually like the minimum downpayment on govt-supported loans to be 30-40% until market prices come down closer to stable levels. If we did that, they’d come down in a hurry, and we could move back to 20% quickly, but at a whole new sustainable price level. Yeah, I know, I’ll just dream on. Barney Frank and Dodd and Schumer would never permit it.
Frank, Dodd and Schumer are the guardian angels of the easy housing money industry. As you know, the laws are made in Congress, and these guys made sure that vast amounts of poorly underwritten loans were made through the laws they supported and their power over regulators and companies like Fannie Mae and Freddie Mac. Others in power just went along, or were luke-warm, or are less powerful, but these guys fought like big feral cats for more liberal lending.
