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There was an interesting article in the Wall Street Journal which you can find here – “Uncle Subprime“.

Take a look at the article. It points out how seriously misguided our lawmakers are, and how completely unaware they always seem to be of the unintended consequences of what they do. Whatever proposal comes down the pike, they just can’t resist gutting it and leaving the worst, most pandering, most foolish elements to become law.

If this current proposal makes it through, expect to see the FHA program swirl down the drain just like subprime lending did. FHA rates would end up as high as subprime rates have ever been. I’ve been watching some of the hearings on these issues and it is astounding how misinformed and often just plain stupid our lawmakers are. Anyone who watched them in action with any regularity would definitely never pick calling the government in to solve a problem as their first choice solution.

Our lawmakers spend a lot of time listening to groups like the “Center for Responsible Lending” which, according to Alan Reynolds from the Cato Institute, actually received substantial funding from John Paulson – who just happens to have recently made between $3 and $4 BILLION shorting mortgage backed securities!!!

Housing Bill Of The Day


Related posts:

  1. FHA Mortgage Reform Moving Ahead
  2. FHA Mortgage Reform: When Will Petty Politics End?
  3. FHA Mortgage Reform Newsflash: Finally – Some Good News!
  4. FHA Mortgage Reform
  5. FHA Mortgage Reform: Still Waiting!

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Filed under: FHA Updates • H.R. 1852 • HUD Regulations • Industry Information

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