http://www.washingtontimes.com/news/2013/mar/3/wallison-and-pinto-new-qualified-mortgage-rule-set/?page=all#pagebreak
WALLISON AND PINTO: New Qualified Mortgage rule setting us up for another meltdown
Despite the claim that it is “protecting consumers from irresponsible mortgage lenders,” the new Qualified Mortgage rule finalized in January by the Consumer Financial Protection Bureau turns out to be simply another and more direct way for the government to keep mortgage underwriting standards low. This sets the country up for a repetition of the mortgage meltdown of 2007 and 2008.
Simply put, government housing policies, implemented by the Department of Housing and Urban Development (HUD), caused the 2008 financial crisis. Before 1992, the vast majority of mortgages in the United States were prime loans. Yet a 1992(READ DURING THE CLINTON ADMINISTRATION) Fannie Mae and Freddie Mac—then the dominant players in the U.S. mortgage market—to purchase an increasing quota of loans that were made to borrowers at or below the median income in their communities.
Yep, loan out money to those who cannot pay, but by gosh refuse to refinance loans for those of us who CAN pay. WTH is wrong with this administration and their thinking processes?
WALLISON AND PINTO: New Qualified Mortgage rule setting us up for another meltdown
Despite the claim that it is “protecting consumers from irresponsible mortgage lenders,” the new Qualified Mortgage rule finalized in January by the Consumer Financial Protection Bureau turns out to be simply another and more direct way for the government to keep mortgage underwriting standards low. This sets the country up for a repetition of the mortgage meltdown of 2007 and 2008.
Simply put, government housing policies, implemented by the Department of Housing and Urban Development (HUD), caused the 2008 financial crisis. Before 1992, the vast majority of mortgages in the United States were prime loans. Yet a 1992(READ DURING THE CLINTON ADMINISTRATION) Fannie Mae and Freddie Mac—then the dominant players in the U.S. mortgage market—to purchase an increasing quota of loans that were made to borrowers at or below the median income in their communities.
Yep, loan out money to those who cannot pay, but by gosh refuse to refinance loans for those of us who CAN pay. WTH is wrong with this administration and their thinking processes?