Diligent Dave,Appreciate the thought but realistically what drove
this was Bill Clinton the the liberal idea that literally almost everyone
"should be able to own a piece of the american dream...a home".As a result the govt got together with the Federal Reserve and their political
appointees as Fannie and Freddie and cooked up a scam of artifically low
interest rates and lax lending requirements and literally threatened banks with
other penalties if they would not participate in this fraud on citizenry. As a
result finanically irresponsible people saw many of their financially
irresponsible neighbors buying/buliding new homes when there was plenty of used
inventory available. Who wants old when you can get new.The market
is overbuilt, people are upside down on their mortgage,s and/or people are
bankrupt now and out of their home because your liberal govt buddies started the
first domino in order to buy votes.Our economy and housing market is
still in a shambles because of the fraudulent housing bubble and the liberal
politicians who created it.Dodd Frank is little more than window
dressing and a $25 billion tax on banks in order to play the game.
This story, though I believe the DesNews powers who pick stories, and make story
placements are largely contrary to such evidence as this, supports Romney's
assertion in the debate Wednesday evening, that Dodd-Frank is greatly flawed. He
pointed out how Dodd-Frank promises to punish lenders who make loans they
shouldn't, but doesn't define what those loans would be. Hence,
lenders are further reluctant (outside of their own self-interest) to do so.The low mortgage rates now offered are the strongest indicator that
demand for housing is dismal. And this proof that the birth dearth of the last
four decades (since the early to mid 1970's) is the culprit.Homes need bodies to fill them. Sub-replacement birthrates of the boomer
generation has resulted in two or three generations who have had too few babies
to even replace each previous generation. This happened, also, prior to the
1930's. From around 1910 on, birth rates plummeted. Once in the Great
Depression, they declined even further. News story this week on continually
declining and lowest ever US birth rates show the same thing now. Unless birth
rates increase, the economy will never recover!
I am trying to understand this. The banks are willing to give me a loan (i.e.
low interest rate), but they want to be sure that there is no fraud on my part
and that I can pay back the loan. OK. From the title it appeared that there is
a paradox. There is no paradox. The banks are willing to make the loans, but
only to people who can actually pay them back. It goes without saying.
This is the anti-barney frank. It means no recreation of the housing bubble or
economic collapse brought on by barney frank.
I was surprised how much information I had to provide my bank just to get a home
equity line of credit. Despite nearly perfect credit, ample income, 20-year
history with the bank, and all the required documentation, it was a long and
difficult process. We did, after all that, get the line of credit.Despite the tough experience, I appreciate the re-tightened requirements,
since it was the "no-doc" and sub-prime loans that created the financial
disaster in the first place.