The public policy blog of the American Enterprise Institute

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Discussion: (8 comments)

  1. So, just what has been “accomplished’? Folks have lost BILLIONS of dollars on down payments to the banks and the banks have made TRILLIONS by working the system, foreclosing on homes, selling them as package deals through Hedge Fund scams, and getting “bailed out” from money WE PAY in taxes.

  2. Max Planck

    “It is time for the FHA to put the interest of working-class families ahead of real estate agents and other interest groups who want to expand risky lending to even more marginal borrowers.”

    Excuse me, Mr. Pinto, but the FHA tries to do just that, and that is what their IG is supposed to be doing. However, it IS kind of tough when crappy organizations submit phony W-2s and falsify information. This can be rife in some neighborhoods- I know, because I’ve heard of competitors being raided and shut down.

    But the criminality is not promoted by the FHA.

  3. James Voss

    The level of risk reported in the study suggests AEI should be focused on higher priority items. To suggest that this is the Institute’s lead economics study at the moment is not inspiring especially when the issues and stakes are so enormous.

  4. Mr. Plank:

    In accounting there is a procedure called AUDITING! After all these years, perhaps, just maybe, someone working in that under-worked and overpaid FHA bureaucracy should do some checking on the efficacy of the agency’s effect upon the market.

    But surely you must understand that real estate people routinely check for the best rates and terms when helping buyers to secure loans – as do 3rd party mortgage companies. Contrary to popular belief among liberals, most of these real estate agents honestly follow the rules.

    As for banks, they push honest paperwork up and FHA says “Yeah, Baby, we will back that mortgage.” Case closed – because the taxpayer is now on the hook. Understand that given a choice, no business will keep risk in a transaction that can readily be passed on.

    Time to shut down the entitlement giveaway. Abolish the Federal Housing Administration and the horse it rode in on.

  5. These programs have increased home ownership in USA, at a very high price. Many tried to reign in the excess, but thanks largely to Barney Frank, the programs were extended even more, soliciting for votes.

    Pity, but gov’t is just not likely to overcome the greed of politicians like Frank, et al

  6. These programs increased home ownership at a very high price. Thanks largely to Barney Frank the programs were extended, soliciting for votes. Gov’t is not likely to overcome the greed of politicians like Frank, et al

  7. Why is this a surprise to anyone. The level of government programs that proclaim victory are through the roof, yet those failing are apparently none.

    Democrats have sold lie after lie to the American people in the name of “fighting for the poor and middle class”. If you believe that, then throw away your future as your rely on them…

    Even CBO had a paper out that examined the Food Stamp program. They projected between 20 and 35 % is corrupted money given to those NOT in need…

    Go figure. This is what happens when the social justice crowd believes in spending more regardless of outcomes…

    Enjoy the ride. Your dependent future is bleak…

  8. Let’s not forget this number 27 million. That’s the number of shitty mortgages that were in the financial system prior to the collapse. And guess what, 2/3 of these shitty loans are on the books where… that’s right… on the books on the good ole fed – and guess who’s footing that bill – the tax payer as usual.

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