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Astounding, that on "Memorial Day", one of you write about "no money down" not being home ownership. MOG it is as if we did not win WW2, and did not create the GI Bill for servicemen to return home and be able to buy new homes via VA low down payment loans, and to go to college with Federal funds supporting them.
After the Great Depression, you appear to think that ONLY FMae&FMac were created to promote ownership. As if FHA 3% down home loans did not exist that far back, and still do not today.
What you forgot, or chose to ignore, is the fact that FHA loans were less that 3% of the RE mortgage market immediately prior to the collapse of the " securitized ARM packages" promoted and marketed by Wall Street prior to 2008, And, that FHA last month has grown from less than 3% then to over 50% today - more than FMae&FMac combined. That growth was led/created by the SAME mortgage brokers, builders & real estate salespeople who were marketing ARMs two years before. FHA foolishly permitted those sharks to start originating loans for them, as The Pretty Lady told U.S.: "Mistake, BIG mistake."
Eliminate that bubble, and you can look, if you would, please, at the foreclosure rates for GI/VA loans from after WW2, and for FHA from the beginning. Precisely, how many of THOSE 3% down loans went bad?
After the Great Depression, you appear to think that ONLY FMae&FMac were created to promote ownership. As if FHA 3% down home loans did not exist that far back, and still do not today.
What you forgot, or chose to ignore, is the fact that FHA loans were less that 3% of the RE mortgage market immediately prior to the collapse of the " securitized ARM packages" promoted and marketed by Wall Street prior to 2008, And, that FHA last month has grown from less than 3% then to over 50% today - more than FMae&FMac combined. That growth was led/created by the SAME mortgage brokers, builders & real estate salespeople who were marketing ARMs two years before. FHA foolishly permitted those sharks to start originating loans for them, as The Pretty Lady told U.S.: "Mistake, BIG mistake."
Eliminate that bubble, and you can look, if you would, please, at the foreclosure rates for GI/VA loans from after WW2, and for FHA from the beginning. Precisely, how many of THOSE 3% down loans went bad?
May 28 11:49 pm
---------------While your point about the "Investment Bankers" making obscene profits/income was on point, you missed another one.
Prior to WBush's administration, "securitized RE loan packages were a very insignificant portion of the home loan market. However, by their collapse in 2008 they were over 50% of the whole RE mortgage market.
But, even THAT number is mis-representative of the true size of it.
See if you can find THESE numbers = the percentage of their securitized RE loans: A. in the "sand states" = Cal, Nev, Fla & AZ; B. during the "dead zone" years - 2002 to 2007; C. of the ARMs created - no doc, liar, interest only, & low down loans; D. of the RE loans "pushed" by WAMU/Chase, Countrywide/BkOAmer, Wells/Wichovia, and IndyMac/BK, now being written off, very slowly, by them; E. of the total "underwater" RE loans owed by U.S.; and F. as in a failing grade, of the RE loans that have already been foreclosed, PLUS those 10% of all current RE loans that are either IN foreclosure or in a past due status.
What they left U.S. is much worse than what they took for themselves - as hard as that is to believe.
Prior to WBush's administration, "securitized RE loan packages were a very insignificant portion of the home loan market. However, by their collapse in 2008 they were over 50% of the whole RE mortgage market.
But, even THAT number is mis-representative of the true size of it.
See if you can find THESE numbers = the percentage of their securitized RE loans: A. in the "sand states" = Cal, Nev, Fla & AZ; B. during the "dead zone" years - 2002 to 2007; C. of the ARMs created - no doc, liar, interest only, & low down loans; D. of the RE loans "pushed" by WAMU/Chase, Countrywide/BkOAmer, Wells/Wichovia, and IndyMac/BK, now being written off, very slowly, by them; E. of the total "underwater" RE loans owed by U.S.; and F. as in a failing grade, of the RE loans that have already been foreclosed, PLUS those 10% of all current RE loans that are either IN foreclosure or in a past due status.
What they left U.S. is much worse than what they took for themselves - as hard as that is to believe.
May 29 12:20 am
If your charts are cut off, please go to the article for them.
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The Root Cause of the U.S. Housing Bubble Has Yet to Be Addressed
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