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Microsoft Corporation Message Board

  • plmartin_2012 plmartin_2012 Jan 10, 2013 10:53 AM Flag

    Democrats Making Amends for Causing the Recession

     

    Looks like dumb-bass libkooks are finally backing off of the stupidity of the Carter/Clinton Community Reinvestment Act, and their follow-up stupidity, when the CRA didn’t work quickly enough, created incentives for expanding subprime lending by pushing Fannie Mae and Freddie Mac into buying up massive amounts of worthless loans, making lending a risk-free proposition for paper-sellers like Countrywide Mortgage and others, and then securitizing them in the financial markets as low-risk bonds:

    Democrats are establishing new rules for mortgages under their Dodd-Frank legislation that will make it harder for some borrowers to qualify, but that are designed to cease the kind of risky lending that caused the 2008 financial crisis, and nearly caused the housing market to collapse.

    The Consumer Financial Protection Bureau (CFPB) on Thursday will roll out the first of several far-reaching changes to the nation’s mortgage market. Among other things, the agency will set standards for how much income a consumer must have to obtain a mortgage. This marks the first time the government has spelled out what constitutes a “qualified mortgage,” an effort to prevent the widespread mandate of loans made to ridiculously unqualified borrowers that hurt millions of Americans during the housing crisis.

    “Credit is going to be restricted, at least a little,” said Cristian deRitis, a senior director at Moody’s Analytics. “The debt-to-income cap, for instance, is going to affect some folks at the lower end of the income scale.”

    So, in other words, the government is going to force lenders to stick to rules they liked before the government forced them to stop using them.

    This topic is deleted.
 
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