IS THERE SOME LIGHT AT THE END OF THE TUNNEL IN THE MORTGAGE INDUSTRY?

Finally folks like Jamie Dimon are taking a stand that mortgage lending standards have kept housing from growing as it should. He said most forms of credit have loosened since the financial crisis except mortgages. “Mortgage credit is too tight.” Because of Barney Frank Fannie and Freddie were forced to adopt rules that are so... stringent many very good credits have been denied. The agencies were also forced by the regs to promulgate rules on buy-backs from lenders selling to the agencies. Unless a borrower put 20% down the lender has to agree to buy the loan back if it ever is delinquent---no matter how long. Who would make such a loan? Not many. Now the FHFA is re-writing the requirements to make it more palatable for banks to make lower down-payment loans---even 3% down may be acceptable now to the agencies. The new rules are still in the making but after six long and wasted years, finally Washington is getting it; let’s hope the bureaucrats and politicians don’t drop the ball. Thankfully Barney is gone; he jumped ship after he authored Dodd/Frank; he shows up every once in a while on CNBC, I love my mute button.