Mortgage Giants Set To Loosen Lending
Fannie, Freddie Near Deal to Lift Limits; Concerns Persist
Fannie Mae, Freddie Mac and mortgage lenders are nearing an agreement that could lower barriers and restrictions on borrowers with weak credit, a move that would expand access to home loans amid the sluggish housing recovery.
The move by the mortgage-fianance giants and their regulator, the Federal Housing Finance Agency, would help lenders protect themselve from claims of making bad loans, according to people familiar with the matter.
Fannie and Freddie are also considering programs that would make it easier for lenders to offer mortgages with down payments of as little as 3% for some borrowers, the people said. That would be a reversal for the loan giants. The moves could be announced this coming week.
Wall Street Journal, 10/18-14-10/19/14 (Weekend edition)
Wasn’t a big part of the last financial crisis mortgage loans made to people who could not pay them back? We’re still cleaning up that mess, but in government, nothing succeeds like bad ideas and failure. A 3 percent move down in housing prices would leave the mortgage giants holding the bag…again. If at first you fail spectacularly, do the same thing all over.
Pingback: Insane Son of Sub-Prime | The Socialist
hello I was very impressed with the setup you used with this blog. I use blogs my self so congrats. definatly adding to favorites.