FHA supporting high house prices when its mission is low prices
By Patrick Follow Mon, 4 Jun 2012, 6:01pm 1,355 views 15 comments
In Menlo Park CA 94025
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Los Angeles, CA
remember all government programs actually do opposite of what they are named for.
Affordable housing initiatives= Make house prices go up!
War on poverty = keep people on welfare 4evar
War on drugs = make drug dealers rich rich rich by keeping price high
I could go on....
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Los Angeles, CA
war on terror = always make sure there are LOTS of terrorists by bombing/interventions/etc
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46 male
Menlo Park, CA
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Yup, divide and conquer.
Very old strategy, but works beautifully.
I was just reading about how during the American Revolution, the English army pulled out of Ireland to fight in America, and Catholics and Protestants immediately started to unify with the goal of making Ireland independent of England. When the American Revolution was over, the English put a lot of effort into making Catholics and Protestants hate each other again, by promoting and arming Protestants and disarming and torturing Catholics and blaming the Protestants for it. And it worked very well. Once the factions started fighting each other again, England could again rule them easily and the dream of Irish independence faded.
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Oakland, CA
FHA annoys me to no end.
Because of nearly no upfront investment, the FHAers seem to be offering above that of investors and those intending to occupy in order to get the property. And I guess intuitively, if I have cash and am willing to pay in full, I'd want to pay less than if I were putting down 20% and financing the rest and even less if I am financing nearly 100%
And why shouldn't the FHAers offer the most? How easy is it to walk away from something you have no investment in.
What kind of gov program is that?
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High prices are usually driven primarily by the cost of borrowing money. During the boom it was dirt-cheap. Now its even cheaper. Every time money becomes cheap, it creates asset bubbles. Will that happen again this time? Hope not...
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Los Angeles, CA
to avoid the FHAers you only need to go to the above 1m property price. So basically a very small percent of people can pay like 1.2m+ and avoid them the feds are an amazing 96% of ALL MORTGAGE FINANCING its really crazy now and getting crazier every year.
This year we have pension funds, reits, hedge funds all buying in bulk direct from the feds - YOU cant even bid or see the addresses on these homes!!! How the hell is this open government Mr Obama?!?!
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Tarzana, CA
I wonder about if I should even reply when my reaction is:
Yeah, obviously, Like, Hello? Ya Think?
Same example, but how on earth did Fannie Mae get in the market of selling Trendy Sherman Oaks Condos?
http://www.redfin.com/CA/Sherman-Oaks/14141-Dickens-St-91423/unit-207/home/4835790?utm_source=myredfin&utm_campaign=listings_update&utm_medium=email
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Los Angeles, CA
FHA is only getting bigger. The NAR has been lobbying to raise loan limit from 729k to 1m. THEN WATCH HOUSE PRICES TAKE OFF!
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Sunnyvale, CA
This is all very simple.
Being a Senator pays $174,000 a year.
Being a Senator costs nearly 10 times that with the average successful campaign running $10M for a 6 year term which is $1,666,666.666 666 per annum - campaign fund of the beast.
The arithmetic works because people (both natural and not) make campaign contributions.
They do that because a little quid pro quo goes a long way.
The National Association of Realtors(TM) gave more money to candidates than _any_ other PAC in the 2010 election cycle outspending giants like Honeywell International, the National Beer Wholesalers Association, and AT&T.
The American Bankers Association, Carpenters and Joiners Union, and National Association of Home Builders were also top-20 PACs.
All benefit from high home prices.
Just follow the money and you too can understand American politics.
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I will wait to buy a house until January 2014.
When FHA loan limit went down to $625,500, I was house prices in 600s, 700s and 800s in Berkeley and and Albany CRASHED.
NAR desperately lobbied to put it back to $729,750 until December 2013 packaging the measure with other "must-pass" laws.
Now that the news is out that default with FHA loans are surging, I have a doubt NAR will be able to pull that trick again AFTER the election.
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Los Angeles, CA
@Socially Dumb I would bet opposite than you. In his 2nd term, Obama doesnt have to worry about nuthin he will green light everything including 1m loan guarantees maybe even BK for Student loans, and maybe ANOTHER 8k bribe to buy a house.
You aint seen nuthin yet - wait for term#2! It must be intoxicating to spend endless zeros and ones from the printing press - they will never ever stop until forced to by outside events.
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PockyClipsNow says
See how well Austerity is working in Europe?
Spending and devaluing the dollar.. and starting over with a new CURRENCY is the only option sadly.
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Mountain View, CA
bmwman91's website
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Patrick,
Why on earth would you suppose that the FHA's mission is low prices? You DO know who the government's masters are, don't you?
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San Jose, CA
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PockyClipsNow says
Pocky,
Do u have a link for this? I'd lke to read it. Thx. :)
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Laguna Beach, CA
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Sh*t.
$1,000,000 home loans on 3.5% down, government backed?!
If that happens, I'm seriously moving out of the country. No joke. I've been offered 6 figure consulting gigs in Japan, and Korea that I've turned down because I thought I would be settling here in the good ol' USA. But if they offer $1,000,000 3.5% loans to any old schmuck who can afford a 55% backend monthly payment PITI, then I am seriously outs. F*ck this country (if that happens).