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Important Remarks from FHA Head

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May 15, 2008 – Comments (1)

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.

1 Comments – Post Your Own

#1) On May 16, 2008 at 11:14 AM, Andyman (94.52) wrote:

I was listening to CNBC on the way into work yesterday morning (yay, satellite radio!), and had to laugh out loud when one commentator said, "Every decade or so, you can rely on the Banks to royally screw things up for everyone else". When is the government going to stop insuring banks against their own poor judgement? I'm tired of bailing these idiots out every 10 years.

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