When we commented on Mel Watt’s Einsteinianly-insane plans to reform FHFA, allowing bad creditors to buy houses (again) with only 3% down-payments (again), we expected nothing but echoes as the”it’s everyone’s ‘right’ to own a home”-meme gets played out for all to see in this goldfish-like societal memory that has entirely lobotomized the actions (and impact) of when this idiocy was trued before. However, a funny thing happened this week… called an ‘election’. And The Republicans have been quick to take note of Obama-appointee Mel Watt’s (replacing acting director Ed Demarco – who had some less-politik plans for real reform) plans with House Financial Services Committee Chairman Jeb Hensarling exclaiming he was “extremely concerned,” about Watt’s “efforts to force taxpayers to back high-risk mortgages with ultra-low down payments,” concluding this plan “must be rejected.”
Excerpts from Mel Watt’s remarks….
Demand in today’s market is also limited by former homeowners who found themselves unable to keep up with their mortgage payments during the financial crisis, including many who lost their jobs during the recession or faced reductions in their income. Many of these individuals not only lost their homes, but also seriously damaged their credit. Many filed for bankruptcy. Although some of them may be back on their feet in terms of income, their impaired credit records constrain their ability to return to homeownership.
This post was published at Zero Hedge on 11/09/2014.
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