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Did you have no credit history or a bad credit history?
At the time I had a tax lien, a very low income and bad credit (500 - 550 - 620) originating a few years earlier when I had a health collapse, was unable to work for a year, and all my open accounts were charged off. My phone had been ringing off the hook for months with mortgage telemarketers. I explained there was no way I could get a mortgage and he was so sure I could.
So I took him up on it because I was so sure I was right and I always enjoy saying I Told You So. And indeed I was right. b
At the time I had a tax lien, a very low income and bad credit (500 - 550 - 620) originating a few years earlier when I had a health collapse, was unable to work for a year, and all my open accounts were charged off. My phone had been ringing off the hook for months with mortgage telemarketers. I explained there was no way I could get a mortgage and he was so sure I could.
So I took him up on it because I was so sure I was right and I always enjoy saying I Told You So. And indeed I was right. b
Did you:
1) Buy a home
2) If #1 is Yes, are you:
a) Still in it
b) Still in it but underwater
c)In Foreclosure
At the time I had a tax lien, a very low income and bad credit (500 - 550 - 620)
They were giving loans to those with no credit history, not those with a bad credit history. Didn't you read the Fannie Mae Foundation's publication I posted earlier?
The government mandates only pertained to a small proportion of the market and started way earlier than Bush 41.
There were no affordable housing requirements imposed on Fannie and Freddie prior to the 1992 legislation.
The Urban Institute
Brent W. Ambrose and Thomas G. Thibodeau
May 2002
“The Federal Housing Enterprises Financial Safety and Soundness Act (FHEFSSA) of 1992 was enacted, in part, to establish incentives for Fannie Mae and Freddie Mac to increase their service to low- and moderate income families and neighborhoods. The legislation required that the U.S. Department of Housing and Urban Development (HUD) set affordable housing goals. The act includes a mandate that the GSEs "lead the industry in affordable lending" and also prohibits the GSEs from discriminating based on prohibited factors, such as a borrower's race, ethnicity or gender, in their loan purchase activities. Rather than just providing general market liquidity, the GSEs under FHEFSSA are expected to take a leading role in serving lower income and minority families by meeting quantitative percentage of business targets, initiating demonstrations and partnerships that facilitate affordable lending, and scrutinizing their underwriting standards and purchasing activities to ensure that they comply with fair lending requirements.”
[quote=WilliamSmyth;21572496]Most of the mortgage market was free of government regulation and any attempts to further regulate the mortgage industry and its derivative products was resisted both from inside and outside the government.[/qupte]
Without the underlying mortgages there would be do derivatives. The explosion in the number of mortgages was a necessary precondition to the creation of the derivatives.
So, the mortgage domino came before the derivative domino.
The bubble was home prices. You just posted a graph of homeownership rates.
I'm afraid it's not that simple.
The "bubble" resulted from multiple factors including increasing demand for homes, low mortgage rates, rising prices, investor demand for mortgage debt (including from the GSEs), lowered underwriting standards, etc.
Attributing the bubble to "prices" alone reflects an only surface-level understanding of the topic.
The "bubble" resulted from multiple factors including increasing demand for homes, low mortgage rates, rising prices, investor demand for mortgage debt (including from the GSEs), lowered underwriting standards, etc.
Attributing the bubble to "prices" alone reflects an only surface-level understanding of the topic.
Correct. People who had no cash down and didn't care how much of a home loan they took out bid up ALL prices.
If you had 20% down you still had to write an offer to compete with those *******s.
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