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Sunday, Apr 20, 2014
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Publius Valerius Publicola  
Rome, Tx.  
July 17, 2012 12:11pm
 
The housing problem was created by liberals (Dodd & Frank) by forcing lenders to lower standards to allow unqualified buyers to get into mortgages they could not repay. There is not a thing wrong with having a large house if you can afford it, but this administration, excepting themselves of course, want to paint those high income individuals who can afford large homes as evil. The old rule of lending, known as the "C's", character, capacity and collateral must again apply. The character and credit history of the individual should lead the lender to believe the borrower will repay the loan, the income of the borrower will allow him to service the debt, as well as cover all other living expenses and the borrower should have a substaintial equity in the property. When these requirements were done away with was the beginning of the housing market decline. Any new plan that does not apply these logical requirements will result in a Schlimmbeserung - an improvement that makes things worse.
     
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