Although it runs counter to the current Washington view, good underwriting standards can satisfy the objectives of both parties.
It’s clear that today’s policies create winners and losers. The winners include real estate agents and home builders, who want to increase borrowing and sell ever-larger and more expensive homes. The losers, as we saw in the financial crisis, are borrowers of modest means who are lured into financing arrangements they can’t afford. When the result is foreclosure and eviction, one of the central goals of homeownership — building equity — is undone.
http://www.nytimes.com/2014/11/01/opinion/underwriting-the-next-housing-crisis.html?_r=0
Although it runs counter to the current Washington view, good underwriting standards can satisfy the objectives of both parties.
It’s clear that today’s policies create winners and losers. The winners include real estate agents and home builders, who want to increase borrowing and sell ever-larger and more expensive homes. The losers, as we saw in the financial crisis, are borrowers of modest means who are lured into financing arrangements they can’t afford. When the result is foreclosure and eviction, one of the central goals of homeownership — building equity — is undone.
------------
A flash of insight striking in an unusual place.
#housing