The Real Cause of the Mortgage Crisis: Conservative Opposition to Sensible Financial Standards
THE POLITICS
Home prices are falling and foreclosures rising across the country. With one in six mortgaged homes now worth less than the loan balance, our entire economy is at risk. Few Americans are aware that the housing bubble was the natural result of reckless Bush administration policies. Let’s place blame where it’s due and outline a series of progressive solutions to the problem.
THE ISSUE
One of every 11 mortgage holders in America faces major loan problems. During the first quarter of 2008, nearly 9 percent of all mortgage holders were delinquent or in foreclosure, the highest rate since recordkeeping began in 1979 [The New York Times [23]]. Foreclosure filings more than doubled from 2007 to 2008 [RealtyTrac [24]].
posted by Dictynna @ 6:39 PM
1 comments
1 Comments:
Exactly what "Bush" policies were the "Real Cause" of the mortgage crisis? I, who just happen to fall into the category of conservative, have been opposed to the mortgage practices of inadequate Loan to Value requirements, "Stated Income" mortgages which don't verify income information and "No Down" interest only loans, negative amortization loans, etc. When these mortgage practices combined with the securitization of mortgages and consequent relief of accountability by the lender for the end result of those loans, what else could we expect but abuse fueled by the greed of brokers whose profit was made by the number of transactions not by the interest from loans and accountability created by loan default or persistency. I don't see where that is a "conservative" policy, it was just plain foolish.
http://blog.charlesstanley.cc
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