Skip to comments.1 OUT OF EVERY 4 HOMES UNDERWATER RECEIVED FHA-INSURED LOANS
Posted on 04/28/2012 2:12:19 PM PDT by Jerome Hudson
The U.S. Federal Reserve estimates that of the 12 million American homeowners who have negative equity, 3 million--or 1 out of every 4--are borrowers with FHA-insured loans.
(Excerpt) Read more at breitbart.com ...
Guess I’m dumb because I would have thought MOST of the homes that were underwater had FHA loans.
To get a home without an FHA loan usually requires the buyer to have a lot more into the deal. Kind makes people look a little longer before they leap, which as a natural consequence, tends to keep them out of bad deals.
OK, let’s take a stroll down memory lane.
Carter and the Dems (lousy name for a band): the Community Reinvestment Act of 1977. Bill Clinton and his boy Franklin Raines who got rich as a `public service entreprenuer’. George W. Bush’s flawed logic that home ownership makes people more responsible (while we stodgy conservatives thought it was the 20% down). At least George in 2003 proposed a new agency to supervise Fannie and Freddie, but Barney Frank assured us there was no need for that, and it can’t be Obama’s fault because, “It was broken when I got here.” Bawney, the blushing bride-to-be, was eventually punished for his administrative fecklessness by being promoted to Chairman of the Financial Services Committee, so ...
Surely it is in fact, once again, Bush’s fault.
Not to worry though, since the government owns half of the $12 trillion dollar mortgage mortgage market (”Let me be clear, the government isn’t going to own any car companies either.”)
Anyway, Congress is on top of things with the House introducing the Community Reinvestment Modernization Act of 2009, with all 61 sponsors Democrats, anxious to provide affordable housing to those with lower incomes, and prepared to blame that wascally wabbit Bush again if those same people prove once again (or twice or possibly for the third or fourth time) why they are not credit-worthy, to wit, they can’t or won’t make their mortgage payments and billions more tax dollars go up in smoke/wind up in Democrats’ pockets.
But I repeat myself.
Guess who will cover the loss?
Some years back we had a single mom working for us. One day she told me she was buying a house. I told her that was a good idea since they lived in a crummy apartment. Everything went fine till she told me it was a $300K home. I knew exactly how much she made, knew she was fighting with her ex constantly about child support, and thought WTF.
She explained to me that her Realtor really wanted to help her. They had met at a local coffee shop where he instructed her on how to fill out, “a whole bunch of papers” so she could “get the house she actually needed.”
She only worked for us for a couple of more years which was about a year and a half longer than she had the house. She probably could have afforded something in the 80-100k range, but hey, the commission on $300k is a lot better than $100k.
I am absolutely certain that in every one of these high profile cases where somebody like a waiter ends up with a $500k home (for a while), there was a lying sack of manure Realtor that showed them exactly how to fill out the applications. And I haven't heard of ONE of them being penalized for it!
hold your horses.....I am a Realtor here in Michigan. The fuggin govt forced these mortgages to the public. your idiot babysitter signed the papers. The Realtor does not always know somebodys financial status. Maybe i should not show a black person a home in a white neighborhood because I think they cannot afford a house because of the color of their skin? Think a bit, dude.
Our records clerk made about 22k per year. She had no other sources of income. This started when she called a number on a yard sign in front of about an 80k home. She filled out all the paperwork to the best of her ability, which the realtor had her tear up and fill out in accordance with her instructions. He had her create bogus other sources of income, as well as grossly overstate increases she expected to receive in her primary income. He also sent it through some friend of his as NO ONE ever called us to verify income or even employment. And you would have to be clinically brain dead to have thought this woman could afford a $300k home. And no, this was not an isolated case.
If nobody called you for verification of income or assets then the loan was a “no-doc” NINA loan. This was made available because of the government....bankers really didnt like making them but they were made so people in lower income neighborhoods could qualify for the loans. The Realtor didnt have to be involved with that at all. If he was involved with fraud, go to the board he is involved with and press them for info on the sale of the home that he was involved with fraud. Realtor boards want this crap out of the business structure. Personally, I have made many mortgage loans (NINA) and stated income stated asset mortgages to builders and they were all repaid. When people abuse the system, everybody suffers.