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follow Patrick 2018 May 31, 10:07pm
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The root of the problem is declining underwriting standards. In April Freddie Mac announced an expansion of its 3% down-payment mortgage, the better to compete with the Federal Housing Administration and Fannie Mae . Such moves propel home prices upward. Because government agencies guarantee about 80% of all home-purchase mortgages, their underwriting standards guide the market.Making lending even more dangerous, CNBC recently reported that “credit scores may go up” because new regulatory guidance allows delinquent taxes to be excluded when calculating credit scores. These are only some of the measures that “expand the credit box” and qualify ever-shakier borrowers for mortgages.
Other ways besides the gun shots to keep property value from inflating:Put up a "Large Mouth Bass" mailboxPut up a chicken coopPorch couch with keg-eratorPark a car in front with a highly amped stereo blasting acid rap, heavy on the bassTrompe l'oeil the closed garage door to look like an immigrant family living inside
Brown lawn with a 1983 Camaro on cinderblocks right in the middle of it.