{"id":16161,"date":"2012-08-16T08:33:39","date_gmt":"2012-08-16T15:33:39","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=16161"},"modified":"2012-08-16T08:33:56","modified_gmt":"2012-08-16T15:33:56","slug":"priceless-our-home-ownership-strategy-will-not-cost-the-taxpayers-one-extra-cent","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/16161\/priceless-our-home-ownership-strategy-will-not-cost-the-taxpayers-one-extra-cent\/","title":{"rendered":"Priceless: “Our home ownership strategy will not cost the taxpayers one extra cent.”"},"content":{"rendered":"

The American Enterprise Institute on the premeditated assault on the prime mortgage:<\/a><\/p>\n

When it comes to a government centered society and its deleterious consequences, our Government Mortgage Complex is the undisputed poster child. There has been no greater economic failure than the collapse of the housing market due to decades of government intervention and crony capitalism.<\/p>\n

Voters need to be reminded about how this disaster came about. It began with the premeditated assault on high-quality, credit-worthy prime mortgages. The perpetrators were Fannie Mae, community groups, and Congress, each of which had the means, motive and opportunity for undertaking this assault.<\/p>\n

As early as 1991, community activist Gale Cincotta, was laying the path for undertaking such an assault in her testimony before the Senate Banking Committee. “Lenders will respond to the most conservative standards unless [Fannie Mae and Freddie Mac] are aggressive and convincing in their efforts to expand historically narrow underwriting,” she stressed.<\/p>\n

Using Fannie and Freddie as the means to expand underwriting standards caused an immediate problem for existing subprime lenders and insurers. In 1992, about 14% of new mortgages had impaired or subprime credit with a FICO credit score below 660. Virtually all these borrowers were already served by private subprime lenders or those using FHA insurance. As Fannie and Freddie expanded into subprime, something had to give-subprime lenders would have to abandon the field or move further out the risk curve. They chose the latter, with the result that both prime and subprime lending got into much more risky loans.<\/p>\n

The motives of Fannie, community groups, and Congress were clear. Fannie wished to protect its valuable federal charter by using trillions of dollars in flexible loans to woo and capture its regulator: Congress. Community groups like ACORN relied on flexible lending to create multiple revenue streams from banks, lenders, Fannie and Freddie, HUD, and others, since they made money from counseling homebuyers, assisting in loan originations, and counseling defaulting borrowers. Members of Congress viewed the many trillions of dollars in flexible lending announced by Fannie and Freddie as a superior form of pork to help them get reelected. It was off-budget, costless, and Read more<\/a><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

The American Enterprise Institute on the premeditated assault on the prime mortgage: When it comes to a government centered society and its deleterious consequences, our Government Mortgage Complex is the undisputed poster child. There has been no greater economic failure than the collapse of the housing market due to decades of government intervention and crony […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[29,26,5],"tags":[],"class_list":{"0":"post-16161","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-group-therapy","7":"category-lending","8":"category-real-estate","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2103,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2103\/hr-3915-mortgage-reform-and-anti-predatory-lending-act-of-2007\/","url_meta":{"origin":16161,"position":0},"title":"HR 3915: Mortgage Reform and Anti-Predatory Lending Act of 2007","author":"Brian Brady","date":"October 25, 2007","format":false,"excerpt":"Congressman Banker...err...Barney Frank co-authored legislation to \"reform\" the mortgage business on Monday.\u00a0 You can view the 66-page text here. Bullet Points of the bill include: 1- Prohibition of \"yield spread premium\" as compensation to originators. 2- Mandatory licensing of mortgage originators by a Federal registry or state regulator.\u00a0 This Bill\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":852,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/852\/what-isaac-newton-knew-about-mortgage-lending\/","url_meta":{"origin":16161,"position":1},"title":"What Isaac Newton Knew About Mortgage Lending","author":"Dan Green","date":"January 4, 2007","format":false,"excerpt":"I recently wrote about sub-prime loans for the first time in a long while because the sector should start taking more headlines in the papers. I'd hate for you to be unready for it, of course. Sub-prime loans are a big part of mortgage lending. \"Sub-prime\" is a broad-sweeping term\u2026","rel":"","context":"In "Enduring Interest"","block_context":{"text":"Enduring Interest","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/enduring-interest\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1460,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1460\/extreme-transparency-in-lending\/","url_meta":{"origin":16161,"position":2},"title":"Extreme Transparency in Lending","author":"Brian Brady","date":"May 22, 2007","format":false,"excerpt":"Mortgage brokers have been under assault by the extreme transparency advocates these last few years. Very smart people have embraced technology as the catalyst of change. They proclaim that technology will change how the American public compensates mortgage brokers. I think their advocacy has some merit. Most consumers just don't\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":358,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/358\/radio-daze-phoenix-area-real-estate-webloggers-make-a-five-theater-assault-on-the-market\/","url_meta":{"origin":16161,"position":3},"title":"Radio daze: Phoenix-area real estate webloggers make a five theater assault on the market . . .","author":"Greg Swann","date":"September 20, 2006","format":false,"excerpt":"Three Phoenix-area webloggers, Jay Thompson, The Phoenix Real Estate Guy, John Wake of Arizona Real Estate Notebook, and Greg Swann of BloodhoundBlog, helped turn a radio show into a five-media event: The radio broadcast itself, listener call-in questions, live weblogging with listener call-in and write-in questions, an on-line podcast and\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":17477,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17477\/overnight-news-ants-protest-not-just-peacefully-but-joyously-grasshoppers-assault-them-from-the-fringes-get-pounded-trumps-fault\/","url_meta":{"origin":16161,"position":4},"title":"Overnight News: Ants protest, not just peacefully but joyously. Grasshoppers assault them from the fringes, get pounded. Trump\u2019s\u00a0fault.","author":"Greg Swann","date":"November 15, 2020","format":false,"excerpt":"I wish I had a reliable resource to report on last night's festivities in Washington, but \u2013 since Trump's supporters were not only attacked, they prevailed \u2013 there won't be any \"news\" on these events until it turns out it was all Trump's fault. Here's a puzzler: A confederation of\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"Ya think it's easy?","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/BHBNewTopImage-300x225.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":4418,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4418\/fannie-and-freddie-fall-to-foreclosure-but-still-lenders-lend\/","url_meta":{"origin":16161,"position":5},"title":"Fannie and Freddie fall to foreclosure, but, still, lenders lend","author":"Greg Swann","date":"September 14, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0Fannie and Freddie fall to foreclosure, but, still, lenders lend I write this column at the beginning of the week, and it appears at the end of the week. My topics are usually timeless, but, if I\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/16161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=16161"}],"version-history":[{"count":2,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/16161\/revisions"}],"predecessor-version":[{"id":16163,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/16161\/revisions\/16163"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=16161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=16161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=16161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}