Important Remarks from FHA Head
May 15, 2008
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The FHA is the agency -- originally created to guarantee loans for low-income earner housing -- that the boneheaded Barney Franks (and Ben Bernankes) of the world want to bail out bubble-blowers by forcing taxpayers to back billions of extra dollars worth of lousy mortgage loans and bankrolling overpriced housing. (What this would actually represent is a major, publicly-funded gift to banks, who would get more for their lousy CDOs than they'd otherwise receive, while locking homedebtors into mortgages they'd be better of ditching...)
But that's my opinion.
What does the head of the FHA itself think of the plan? That it's a short-sighted bailout fed not by sound policy, but by election-year pandering. Oh yeah, and he notes, as I have in the past, the the FHA doesn't pay for itself, as lazy pressmen like to claim (without having read the CBO studies that refute it.)
Read this at HousingPanic, and the accompanying links.
Best of all, he delivered this address as a nice punch in the mush to an assembled group of Realtor home-shills having their annual Washington meet 'n' greet.
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