Quote:
Originally Posted by Lamplighter
@Adek
... does "federal gov't loan system" mean Fanny Mae and Freddy Mac ?
(if so, you're mistaken because those loans are usually initiated by banks, mortgage companies, etc.)
... do you include the VA loans ?
... do you include the Dept of Agriculture (farm) loans ?
... do you include the WWII FHA mortgage insurance ?
Do you believe these should be eliminated ?
I admit I'm assuming your remarks are in the nature of negative criticism.
Are you being critical of the entire "federal gov't loan system",
as opposed to the mortgages held within a "private lending system" ?
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Not being critical, atm. I know, hard to believe right? I haven't checked out all the pros and cons of this.
Just reporting an interesting factoid. It includes ALL the home loan programs that the federal gov't has, in total. No matter who is the originator, the loan will be "pigeon holed" into a specific program of the federal gov't, almost without exception. Banks and Savings and Loans, do few home loans which they will keep in-house.
Obviously, it encourages home ownership, but it's poor oversight has directly lead to the housing crisis, in the USA, and tremendous losses to investors abroad. Of course, there was massive fraud, but since when does it take 10 years (at least) for the lending agencies to detect that there is massive fraud going on, and it's threatening to bankrupt the entire agency? D'uh!
That's WHY I don't like the feds running everything - they do a poor job of things, on the whole -- some agencies of the feds notably excepted, of course.
Think about it though, if the feds can determine whether you can buy a house or not, that's a huge fulcrum to make you do any little old thing they want, when they want you to do it.
That doesn't strike me as liberty or freedom.