In accordance with the mission of Fannie Mae to enable home ownership by a greater proportion of the population, Franklin Raines, while Chairman and CEO, began a pilot program in 1999 to ease credit requirements on loans that Fannie Mae purchased from banks. Raines promoted the program saying that it would allow consumers who were "a notch below what our current underwriting has required" to get home loans. The move was intended in part to increase the number of minority and low income home owners.
Relaxing loan requirement s may be appropriate if they are too tight. Happens all the time in lending, PROVIDED the borrowers have enough stake in the deal not to walk. The issue is low down payments. Few people walk from 20% down. Almost none regardless of other credit issues.
no one forced a bank to make bad loans , coach people to lie on applications and claim prime ratings for junk loans. Rich greedy bankers did that for profit; little poor people didn't pull that off. The FED did not pay attention to lending by banks. States said stop it and W sued all 50 states to mind their own business and let it go on for 7 years as president
I don't know if van is just getting desperate or what , but about now he should be running out of far fetched
theories. Anyone knows if you rent , you can give notice run to another state. A more resourseful person would rent their home, and rent in a new area and do a deal with their tenants or sell in time. That's what I did
and made money after about 2 years. There are other issues much weaker linked regarding quality but these are loosely linked and can be argued endlessly. The theory people should become renters to support
shorter employment tenures and venues I really don't know. I started out in Florida and had to follow money
because my background is so specialized. My sisters being teachers and my ex being in law could throw a dart over their shoulder onto a map of the USA and live wherever that dart lands. I had one of the toughest situations where i had to move across the country 4 times and spend time back here between contracts, but the point is I made out just fine with a combination of resoursefulness brains and gumption. so these weak kneed arguments I don't support