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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: JohnM who wrote (40904)	9/2/2007 4:01:41 PM
From: Dale Baker	Respond to of 541957

you feel the government should have no role. I support the role the government has played through Fannie Mae and Freddie Mac buying conventional mortgages plus VA and FHA financing support. That more than takes care of the disadvantaged people who need a leg up getting into a modest new home. But I don't think the government should step in after those same new buyers ended up in houses way beyond their means, and try to keep them there. I'd rather see a program that says if you have to give up your current house due to mortgage resets, FHA will work with you to find a loan you can afford for a house at a price you can afford on your current income. Then I would make it impossible for lenders to loan money on short-term reset terms that the borrower clearly can't handle once it reaches the full rate. That hurts homebuilders tossing up more McMansions, but they are selling into an artificial market if the buyers can't afford to keep their homes. And artificial markets go boom sooner or later.