In the name of “affordable” loans, the White House is creating the conditions for a replay of the housing disaster.
What really caused the financial crisis? Peter Wallison argues it was housing finance policy and without changes, it could happen again.
On Tuesday, President Obama will deliver his seventh State of the Union address. What major policy changes can we expect? How will the different parties respond, and what does this mean for America’s future prosperity and security? AEI experts weigh in.
In Peter Wallison’s new book, Hidden in Plain Sight, the U.S. government is charged with principal responsibility for causing the financial crisis of 2007-09. What will the jury say? “Guilty, Your Honor!”
Because of the government’s extraordinary role in bringing on the crisis, it should not be treated as an inherent part of a capitalist or free market system, or used as a pretext for greater government control of the financial system. On the contrary, understanding the financial crisis for what it was will permit the debate we should have had about the Dodd-Frank Act.
Covering a housing or banking story today? Here’s the latest from the experts on the AEI financial services team.
AEI’s Edward J. Pinto presents documents from the FHA’s first five, formative years, and housing experts discuss.
The Wealth Building Home Loan was designed to serve the twin goals of providing a broad range of home buyers a more reliable and effective means of building wealth without relying on home price appreciation, while maintaining buying power similar to a 30-year loan. But how does the it help borrowers reliably build wealth?
AEI’s International Center on Housing Risk releases a new objective and transparent measure of the first-time buyer share and the riskiness of first-time buyer mortgages.
To meet HUD quotas for mortgages to borrowers at or below the median income where they lived, Fannie and Freddie bought riskier mortgages, even if these mortgages were cash-out refinances.
Federal policy often tilts the playing field, picks winners and losers, and rewards well-connected insiders, contributing to the public perception that the ‘game’ is rigged and harming economic growth. AEI scholars have identified a few policy changes that lawmakers can pursue if they want to combat cronyism and corporate welfare.