Housing market repeat?
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?
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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