FHA loan expansion
Posted Dec 14, 2007 @ 1:21 pm, Viewed by 526 Visitors, Read 536 Times.
Commentary
Apparently the Congress is now poised to put the Federal Housing Administration in the business of insuring $400,000 home loans to buyers with $55,000 annual incomes who finance 98.5% of home purchase prices.
And apparently at subsidized interest rates too. Incredibly, a Republican President supports this.
Why, after private lenders have already savaged national and international credit markets with reckless subprime home lending, is the Congress now directing the Federal Government, at taxpayers' expense, to either repeat the private lenders' mistakes and/or bail them out of their mistakes?
How does this advance anything? Why should people making $55,000 a year be buying $400,000 homes with 1.5% down payments anyway? And why should they be doing so at taxpayers' risk and expense? The Constitution grants the Federal Legislature zero power to enact Federal insurance of home lending in the first place.
And the entire Federal Department of Housing and Urban Development is itself a gross violation of Constitutional provisions which expressly reserve to the states and to the people powers the Constitution does not explicitly grant to the Federal Legislature.
But surely the only real remedy for the sub-prime lending mess is to let the bankers, brokers, and bondsmen who made billions from it now take their medicine as the ordinarily more responsible private market for home financing adjusts and revives.
Forcing the Federal Housing Administration to now burden taxpayers with more of the same merely compounds the existing problem and shifts the burden from those who profited greatly from it to those who are forced merely to pay inequitably high Federal taxes for unconstitutional Federal activities.
The Federal Government should stay out of the home financing business and let the private home financing market learn its lessons. People with "questionable credit" shouldn't get "low-interest home loans" --either from the Federal Government or the private sector.
Apparently the Congress is now poised to put the Federal Housing Administration in the business of insuring $400,000 home loans to buyers with $55,000 annual incomes who finance 98.5% of home purchase prices.
And apparently at subsidized interest rates too. Incredibly, a Republican President supports this.
Why, after private lenders have already savaged national and international credit markets with reckless subprime home lending, is the Congress now directing the Federal Government, at taxpayers' expense, to either repeat the private lenders' mistakes and/or bail them out of their mistakes?
How does this advance anything? Why should people making $55,000 a year be buying $400,000 homes with 1.5% down payments anyway? And why should they be doing so at taxpayers' risk and expense? The Constitution grants the Federal Legislature zero power to enact Federal insurance of home lending in the first place.
And the entire Federal Department of Housing and Urban Development is itself a gross violation of Constitutional provisions which expressly reserve to the states and to the people powers the Constitution does not explicitly grant to the Federal Legislature.
But surely the only real remedy for the sub-prime lending mess is to let the bankers, brokers, and bondsmen who made billions from it now take their medicine as the ordinarily more responsible private market for home financing adjusts and revives.
Forcing the Federal Housing Administration to now burden taxpayers with more of the same merely compounds the existing problem and shifts the burden from those who profited greatly from it to those who are forced merely to pay inequitably high Federal taxes for unconstitutional Federal activities.
The Federal Government should stay out of the home financing business and let the private home financing market learn its lessons. People with "questionable credit" shouldn't get "low-interest home loans" --either from the Federal Government or the private sector.
Choice Real Estate® -- Loyal REW client
MD DC VA homes for sale | Daily mortgage rates>> FHA, VA, USDA
Rate this Post!
Share this Post
Print
Social BookmarkingThis Post Has No Comments.
REW Blogs User Stats
Currently Online Users:
0
Total Users:
2,389
Entries:
7,601
Unique Views:
6,438,367
Total Views:
6,775,774
Total Comments:
9,371
Total REW Points:
510
Choice Real Estate®
www.choicerealestate.net Read More
Contact Me
RSS Feed- This User's Stats
-
Blog Entries: 28Average Blog Rating: 0Unique Views: 18,672Total Views: 19,708Comments Posted: 47Comments Received: 30REW Points: 0
- Friends
-
Top Rated
REW Blogs RSS Feed