Talk of The Villages Florida - View Single Post - The U.S. Housing Crisis: Where are home loans underwater?
Thread: The U.S. Housing Crisis: Where are home loans underwater?
View Single Post
 
Old 09-01-2013, 08:38 AM
Lark7's Avatar
Lark7 Lark7 is offline
Senior Member
Join Date: Sep 2012
Posts: 263
Thanks: 10
Thanked 4 Times in 4 Posts
Default
Quote:
Originally Posted by Bay Kid View Post
I have been in the real estate business on the Chesapeake Bay for 38 years. This has been the worst I have ever seen. So many bank owned properties. This hardly ever happened until 3-4 years ago. Why would banks loan money to people that they know couldn't pay? On the good side sales are up and prices are level.
There was so much political pressure on FNMA and FHLMC to fund loans which an otherwise prudent lender would not have made to customers. Labeled the CRA program and other smaller programs, regulatory pressure on banking institutions was very intense.

Unfortunately, taxpayers have and will continue to fund the losses from these programs.