When the lending system works to get rules softened, yes it will allow credit worthy borrowers more access, but unfortunately there are those that should never be given loans of that magnitude. I have no problem with people that are credit worthy who really do need the help. But, some of the schemes the lobbyists and lenders get into the pipeline end up crashing the system at the first downturn in the economy. Especially when borrowers have no skin in the game because the downs are near to nothing. I have seen this cycle several times throughout the years - boom and bust because of loosened credit to stimulate the markets.
Adjustable interest rates should not be allowed. I never understood why being "under water" on a house would force one into default any more than being under water on a car loan was what happens the day you bought it and drove it off the lot and you made the payments regardless.
The problem for new buyers is the down-payment. With house costs in some areas averaging $400,000, that's $40,000 plus closing costs. I assume a GI loan still bypasses this requirement.
High costs of housing is driven by corporate buying (blackrock) and illegal aliens. If it's driven by economic expansion, there are salaries commensurate with price.
verry Leary of any deregulation, remember the mortgage problems 20 years ago .
I guess the lessons from the subprime market debacle were not learned.
Not to mention: more usury as a cure for not enough usury?
yep
Problem for "credit worthy" borrowers. They have been locked out. That is not the subprime market.
When the lending system works to get rules softened, yes it will allow credit worthy borrowers more access, but unfortunately there are those that should never be given loans of that magnitude. I have no problem with people that are credit worthy who really do need the help. But, some of the schemes the lobbyists and lenders get into the pipeline end up crashing the system at the first downturn in the economy. Especially when borrowers have no skin in the game because the downs are near to nothing. I have seen this cycle several times throughout the years - boom and bust because of loosened credit to stimulate the markets.
Adjustable interest rates should not be allowed. I never understood why being "under water" on a house would force one into default any more than being under water on a car loan was what happens the day you bought it and drove it off the lot and you made the payments regardless.
The problem for new buyers is the down-payment. With house costs in some areas averaging $400,000, that's $40,000 plus closing costs. I assume a GI loan still bypasses this requirement.
High costs of housing is driven by corporate buying (blackrock) and illegal aliens. If it's driven by economic expansion, there are salaries commensurate with price.