| | | Because They Just Can’t Help Themselves
Filed under: General — Dana @ 9:35 am
1/9/2016
patterico.com
The Washington Post announced this week that a new opportunity for home ownership is available to credit-worthy low-to-moderate-income borrowers through Fannie Mae’s new HomeReady mortgage program.
It’s a short notice in the Real Estate section of the paper, offering little detail, but you can read the HomeReady FAQs here, or you can cut to the chase and read an enlightening editorial at Investor’s Business Daily that pretty much tells you all you need to know about the “new” program:
Subprime 2.0: The White House is rolling out a new low-income mortgage program that for the first time lets lenders qualify borrowers by counting income from nonborrowers living in the household. What could go wrong?
The HomeReady program is offered through Fannie Mae, which is now controlled by Obama’s old Congressional Black Caucus pal Mel Watt. It replaces the bankrupted mortgage giant’s notorious old subprime program, MyCommunityMortgage.
In case renaming the subprime product fails to fool anybody, the affordable-housing geniuses in the administration have re-termed “subprime,” a dirty word since the mortgage bust, “alternative.”
So HomeReady isn’t a subprime mortgage program, you see, it’s an “alternative” mortgage program.
But it might was well be called DefaultReady, because it is just as risky as the subprime junk Fannie was peddling on the eve of the crisis.
At least before the crisis, your income had to be your own. But now, as a renter, you can get a conventional home loan backed by Fannie by claiming other people’s income. That’s right: You can use your apartment roommate’s paycheck to augment your qualifying income. Or your abuela. What’s that quote, something about those who cannot remember the past are condemned to repeat it? Yeah, that.
Read the whole thing.
–Dana |
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