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The partial repeal allowed Commercial and Investment banking together. That is the basis for those who incorrectly say that repeal caused the collapse. Their focus is not on government lowering lending standards and handing out little to no payment loans. That is the cause. Nothing else.
clarification, I am referring to how the number of little to no down payment loans jumped under Bush. It was those loans given to people who didn't normally qualify.
clarification, I am referring to how the number of little to no down payment loans jumped under Bush. It was those loans given to people who didn't normally qualify.
The low LTV loans began in the 1990s under Clinton. That's why there was a 4 percentage point increase in home ownership during his Administration and only a 1.5 percentage point increase under Bush's.
The low LTV loans began in the 1990s under Clinton. That's why there was a 4 percentage point increase in home ownership during his Administration and only a 1.5 percentage point increase under Bush's.
Again the little to no down payment loan boomed under Bush. That's what matters. Little to no equity so whomever held the mortgage was going to loose. Have 20 percent equity, the drop in housing prices doesn't hurt nearly as much.
In 2006 1 out of every 3 mortgages were 3 percent down or less. By then almost half, 45 percent, of all first time mortgages were no money down.
Started to increase under Clinton. Boomed when Bush was in office.
If that were true, there would have been an even bigger increase in home ownership under Bush than Clinton. There wasn't. The increase was significantly lower. Most of the low LTV and high-risk loans to those who never should have qualified had already been made.
If that were true, there would have been an even bigger increase in home ownership under Bush than Clinton. There wasn't. The increase was significantly lower. Most of the low LTV and high-risk loans to those who never should have qualified had already been made.
Again the little to no down payment loans boomed under Bush I'm not blaming Bush for the crash btw
In 2006 1 out of every 3 mortgages were 3 percent down or less. By then almost half, 45 percent, of all first time mortgages were no money down.
That's what matters. Little to no equity so whomever held the mortgage was going to loose. Have 20 percent equity, the drop in housing prices doesn't hurt nearly as much.
What percentage of little to no down payment loans were made under Clinton?
from 2001 through 2006, the share of all mortgage originations that were made up of conventional mortgages (that is, the 30-year fixed-rate mortgage that had always been the mainstay of the U.S. mortgage market) fell from 57.1 percent in 2001 to 33.1 percent in the fourth quarter of 2006. Correspondingly, sub-prime loans (those made to borrowers with blemished credit) rose from 7.2 percent to 18.8 percent, and Alt-A loans (those made to speculative buyers or without the usual underwriting standards) rose from 2.5 percent to 13.9 percent.
Last edited by Loveshiscountry; 09-11-2015 at 07:25 AM..
Again the little to no down payment loans boomed under Bush
How so? The FACT is that home ownership increased significantly more under Clinton when the GSEs' low LTV and high-risk loans started than it did under Bush.
Just looking at a snapshot at an endpoint doesn't determine when significant changes happened.
The average rates of interest earned on the Reserve Banks' holdings of Treasury securities increased to 2.50 percent and the average rates on GSE debt securities increased to 3.42 percent in 2014. The average rate of interest earned on federal agency and GSE MBS increased to 3.01 percent in 2014. The average interest rates for securities sold under agreements to repurchase decreased to 0.05 percent in 2014. The average rate of interest earned on foreign currency denominated investments decreased to 0.33 percent while the average rate of interest earned on central bank liquidity swaps decreased to 0.52 percent in 2014.
Net income on GSE MBS was 51,264 billion in 2014 vs 36,628 in 2013.
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