Future of Housing Finance

[fishpoopoo]

Originally Posted by RIJIMMY

Nice FPP - you gotta love the line - "Strong safety and soundness regulation and a vigorous affordable housing mission are not only
compatible, but will reinforce each other."

Yes, it was the evil Republican ways that got us where we are today.

Well, the republicans aren't exactly off the hook - on the affordable housing issue. Remember Phil Gramm?

If you boil this humungous topic (and I mean gargantuan) down into two issues - it comes down to 1) the dumbing down of lending standards via "affordable housing policies," and, more importantly, 2) abnormally low interest rates set by the federal reserve from 2001-2004.

I blame the dems mostly for dumbing down lending standards (CRA, HUD, Fannie and Freddie), and one very stupid republican (Alan Greenspan) for the abnormally low interest rates that was the fuel for the fire that became the housing bubble.