Politicians intentionally set up Fannie Mae and Freddie Mac to fail so they could reform mortgage finance without fear of voter backlash.
You never let a serious crisis go to waste. And what I mean by that it’s an opportunity to do things you think you could not do before.
Rahm… – Politicians designed a future crisis to facilitate mortgage finance reform
Since high home prices can no longer be overcome by financial innovations in lending, state and local governments are trying their own market manipulations to sustain inflated home prices.
The federal reserve’s zero interest rate policy is fraught with unintended financial consequences. The p… – States struggle to help Millennials screwed by inflated house prices
Lobbyists for payday lenders gained the support of the Chair of the Democratic Party in their efforts to rip off the poor and keep them in debt servitude.
Many lenders are contemptible scum, particularly those who make consumer loans to poor people. Payday lenders are the worst of the worst…. – Scummy payday lenders bought the support of Democratic Party Chair
Competition for limited housing stock will prompt low-income workers to allocate any pay raises to securing better housing, enriching landlords.
Advocates for raising the minimum wage have lofty aspiration. Many working-class Americans barely make ends meet earning minimum wage — and some… – Raising minimum wage enriches landlords in low-supply housing markets
Homebuilders change their focus from move-up to entry-level buyers as sales wane in the move-up market and more Millennials buy entry-level homes.
Homebulders typically provide product for all levels of the housing market. However, after the housing bust, most homebuilders completely abandoned… – Homebuilders painfully transition from move-up sales to entry-level market
Conforming loan limits create intense buyer competition at under-limit prices and restrict home price increases need to bail out underwater borrowers.
The FHA and the GSEs exist to provide subsidized mortgages to lower- and middle-income Americans. The conforming loan limit is put in place to… – Conforming loan limits inhibit higher home prices
We’ve all read stories about the challenges first-time homebuyers face in today’s market. First-time homebuyer participation is hovering near 30-year lows, and showing little sign of improvement. Rather than describe the effects in another post, I thought it would be informative to… – Story of a self-reliant Gen-Xer’s first time home purchase