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Bailout mutates into FHA "modernization"
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2007 May 6, 10:24am 17,548 views 135 comments
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so this was irony? OK, whatever…
Again, you're taking quotes out of context and fitting them to your own arguments. You really do miss the forest through the trees. You either are just that clueless, or you might make a great politician. Maybe they are one in the same.
I'm not entirely sure what point it is you were trying to make -- at any time, about anything, then. Perhaps you should just enunciate a clear statement about your views of the poor, empty calories, what constitutes good nutrition, the nobility of corporations, and so on.
Your constant self-corrections and so on start to sound like Alice In Wonderland --
`And how exactly like an egg he is!' she said aloud, standing with her hands ready to catch him, for she was every moment expecting him to fall.
`It's VERY provoking,' Humpty Dumpty said after a long silence, looking away from Alice as he spoke, `to be called an egg -- VERY!'
`I said you LOOKED like an egg, Sir,' Alice gently explained. `And some eggs are very pretty, you know, she added, hoping to turn her remark into a sort of a compliment.
`Some people,' said Humpty Dumpty, looking away from her as usual, `have no more sense than a baby!'
...
'There's glory for you!'
`I don't know what you mean by "glory,"' Alice said.
Humpty Dumpty smiled contemptuously. `Of course you don't -- till I tell you. I meant "there's a nice knock-down argument for you!"'
`But "glory" doesn't mean "a nice knock-down argument,"' Alice objected.
`When _I_ use a word,' Humpty Dumpty said in rather a scornful tone, `it means just what I choose it to mean -- neither more nor less.'
`The question is,' said Alice, `whether you CAN make words mean so many different things.'
`The question is,' said Humpty Dumpty, `which is to be master -- that's all.'
I’m not entirely sure what point it is you were trying to make — at any time, about anything, then. Perhaps you should just enunciate a clear statement about your views of the poor, empty calories, what constitutes good nutrition, the nobility of corporations, and so on.
I'm done with trying to debate with you and your closed-minded point of view. You stopped making sense long ago.
Your constant self-corrections and so on start to sound like Alice In Wonderland —
Self-corrections? Now you're just making $hit up.
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Now we hear that the the Federal Housing Administration wants to keep the subprime shell game going by eliminating downpayments entirely:
FHA Modern is So Subprime
What is wrong with FHA subprimization?
Private lenders have realized the risk in subprime and increased their demands on the borrowers, upping downpayment requirements. But now the government wants to step in with federal guarantees for loans that don't require downpayments at all anymore. Can the government assess lending risks better than banks can? I don't think so.
The justification is that the FHA needs to take back market share from other lenders, market share that it lost in 2001-2005. This is silly. The taking-back is already happening, with existing guidelines, because private lenders don't want to touch certain customers anymore.
The use of federal loan guarantees moves the problem from today's budget to tomorow's budget. It hides the federal liabilities in rosy assumptions that the housing prices won't fall, like it did in its model of subprime lending - we know now how that worked. Why repeat the error on a bigger scale?
The making of a downpayment is a blessing for all, the borrower, the lender, and the public:
- The borrower has shown that he can earn and save that kind of money.
- The borrower gets a better feeling for the true price of the house.
- The lender knows that the borrower has skin in the game and will fight to keep his mortgage from defaulting.
- If the borrower has to move unexpectedly, he is less likely to be underwater and be forced to come up with money for a short sale: the ability to move is good for the economy.
- It reduces leverage in the whole financial system.
Regards,
Peter T.
#housing