Housing market repeat?

Housing market repeat?

November 6, 2014 Uncategorized
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(Last Updated On: December 15, 2014)

I recently came across a few stories about “new” proposals by regulators.

Here is the quote from Federal Housing Finance Agency Director Mel Watt:

Additionally, Watt pledged to increase access for less affluent borrowers, saying the FHFA is working with the GSEs to develop guidelines for mortgages with loan-to-value ratios between 95% to 97%. “Through these revised guidelines, we believe that the Enterprises will be able to responsibly serve a targeted segment of creditworthy borrowers with lower-down payment mortgages by taking into account ‘compensating factors,'” said Watt.

What does Ed DeMarco, who was the conservator for Fannie Mae and Freddie Mac from 2009 through 2014 think of the idea?

Sounds like he is not a fan, as evidenced here and here.

As Albert Einstein is credited with saying:

The definition of insanity is doing the same thing over and over again, but expecting different results.

 


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About the Author

Jack Vogel, Ph.D.

Jack Vogel, Ph.D., conducts research in empirical asset pricing and behavioral finance, and is a co-author of DIY FINANCIAL ADVISOR: A Simple Solution to Build and Protect Your Wealth. His dissertation investigates how behavioral biases affect the value anomaly. His academic background includes experience as an instructor and research assistant at Drexel University in both the Finance and Mathematics departments, as well as a Finance instructor at Villanova University. Dr. Vogel is currently a Managing Member of Alpha Architect, LLC, an SEC-Registered Investment Advisor, where he heads the research department and serves as the Chief Financial Officer. He has a PhD in Finance and a MS in Mathematics from Drexel University, and graduated summa cum laude with a BS in Mathematics and Education from The University of Scranton.