I have a good idea on that: require 20% down payments, in cash, a good job, very little other debt (including NO student or IRS debt), and limit them to a mortgage with a payment that is no more than a quarter of their family's net income.
I doubt that's what Dear Leader meant when he told JPMorgan to do more to help people avoid foreclosures.
Hey, Obamorons--you cannot tell a mortgage lender to make any size loan to anyone that asks AND expect the foreclosure rate to stay low. That doesn't work in the real world. It doesn't even work in the rock candy mountain with cotton candy cloud dream world that most academics inhabit (though they'd never admit it).
48 minutes ago
Many moons ago (when I was married with children) we bought a house.......
ReplyDeleteAnd it was tough to qualify....kind of like this:
........require 20% down payments, in cash, a good job, very little other debt (including NO student or IRS debt), and limit them to a mortgage with a payment that is no more than a quarter of their family's net income......
And the fact that this is no longer required is getting people signed up for mortgages they can't afford, in too much house for them to keep up with.
ReplyDeleteHowever, since not granting mortgages to people who can't afford them is "redlining" and racist, the other option is that the people who would have been denied for not being able to afford a house will have the house they can't afford foreclosed on.
But that's racist, too, somehow...