I have a simple question: Should it be easier for people to buy a home?
|Photo courtesy of britannica.com|
There are many out there who see home-ownership as a God-given right. How dare these greedy lenders be so strict with their lending requirements! Right?
Well, when I take stock of the Great Recession we just went through (some would argue we’re still there), it seems pretty obvious that the 2007 housing bubble pop was the primary cause. But what caused the housing bubble in the first place? Maybe I’ll write a blog on that topic soon.
I recently came across Mark Dotzour’s BLOG on A&M’s Real Estate Center’s website and found his post thought-provoking yet alarming. He writes about how great it is that Fannie and Freddie are going to “greatly expand mortgage credit” and give “much needed protection to mortgage lenders” in the event that they make a home loan that becomes delinquent.
Is this not what got us into this mess in the first place? Of course, I love the idea of everyone owning their own piece of property. But shouldn’t it be somewhat difficult to borrow such massive amounts of money?
Anyway, here is Mark Dotzour’s blog post I am referring to: