AEIdeas

The public policy blog of the American Enterprise Institute

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Discussion: (5 comments)

  1. Why not just get rid of the FHA? Government programs distort markets and no matter how well intentioned usually wind up having dire unintended consequences.

  2. Max Planck

    AEI’s “Liar in Chief” weighs in!!

    The expert!!

  3. Max Planck

    “Each year, the FHA gives Congress a negative report and then says not to worry, next year will be better. But in fact, each year it gets worse. FHA’s delinquencies continue to grow with one in six FHA loans delinquent 30-days or more. The longer it takes the FHA to return to a sound fiscal footing the greater the risk to the taxpayer.”
    “It is unacceptable for FHA to say once again, not to worry, next year things will get better. We cannot continue operating an agency with $1.1 trillion in obligations on rosy scenarios.”

    Eddie, YOU’RE UNACCEPTABLE. In fact, I think you’re despicable.

    This problem WILL rectify itself over time as the bubble years fade into the rear view window. Look at the profits at the GSEs today, for example. All that needs to be done for housing- and indeed, the economy as a whole- is to let the debt bubble and the reckless monetary policy pass through is like a kidney stone until it’s gone. Yes, it hurts, but yes, we will heal. Foreclosures are already yesterday’s news.

    This is a great statement by the Eddie.

    “It should start by reducing its tolerance for failure and return to its traditional mission. It is a disservice to low- and moderate-income families and communities to continue making so many high risk loans. The best way to do that is to reduce the risk layering combining (low FICO, low down payment, high debt ratios and/or slowly amortizing 30 year term) on its high risk mortgages.”

    I must say I’m impressed with your advocacy for a government housing mission. Perhaps you’ll get a real job, eh?

    But as an (cough) “expert” like yourself knows, we have long tolerated higher default rates for FHA as long as the insurance was paid by the borrower. Its just a numbers game folks, and yes 8% is a high default rate. It also means that NINETY TWO PERCENT of the loans performed.

    Wanna dance with me, Eddie? As Wallison’s evil twin, perhaps you’ll show more courage than he did. You won’t have an idiot like John Gambling to sit there and agree with every misleading statement you make.

  4. Dissolve the fha, fannie, and freddie. Dissolve the fed. Not a single one of our founders saw any need for any of those expensive, wasteful, intrusive, overreaching, and inept organizations. We don’t need them.

  5. Max Planck

    By the way, folks, people should know that “Fast Eddie” Pinto has no training in credit analysis, and like his brother-in-lies Peter Wallison, knows little about the mortgage process. He was fired from Fannie Mae in 1989. He might have, let’s say, a chip on his shoulder. It sure as hell isn’t a brain.

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