{"id":54211,"date":"2015-07-09T05:00:50","date_gmt":"2015-07-09T10:00:50","guid":{"rendered":"http:\/\/www.shotinthedark.info\/wp\/?p=54211"},"modified":"2015-07-07T16:40:41","modified_gmt":"2015-07-07T21:40:41","slug":"54211","status":"publish","type":"post","link":"http:\/\/www.shotinthedark.info\/wp\/?p=54211","title":{"rendered":"Patching The Balloon"},"content":{"rendered":"<p>Joe Doakes from Como Park emails:<\/p>\n<blockquote><p>Fannie Mae used to allow 97% loan-to-value meaning you only had to have 3% down to buy.\u00a0 After the crash, they lowered that to 95% meaning borrowers needed to save up 5% to buy.\u00a0 It turns out women and minorities are hardest hit by that change.\u00a0 <a href=\"https:\/\/www.fanniemae.com\/singlefamily\/97-ltv-options\">So Fannie Mae raised it again to 97%. <\/a><\/p>\n<p>&nbsp;<\/p>\n<p>They point out that only 7% of all such 97% loans given between 1999 and 2012 went bad, about the same as all other loans.\u00a0 What could go wrong?<\/p><\/blockquote>\n<p><a href=\"http:\/\/www.shotinthedark.info\/wp\/wp-content\/uploads\/2015\/07\/defaultrate.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-54212\" src=\"http:\/\/www.shotinthedark.info\/wp\/wp-content\/uploads\/2015\/07\/defaultrate.jpg\" alt=\"defaultrate\" width=\"466\" height=\"625\" srcset=\"http:\/\/www.shotinthedark.info\/wp\/wp-content\/uploads\/2015\/07\/defaultrate.jpg 466w, http:\/\/www.shotinthedark.info\/wp\/wp-content\/uploads\/2015\/07\/defaultrate-224x300.jpg 224w\" sizes=\"auto, (max-width: 466px) 100vw, 466px\" \/><\/a><\/p>\n<blockquote><p>Yes, and if you started with all loans since Moses, it\u2019d be an even smaller percentage.\u00a0 Look at the loans given in 2007, when prices were at the max and everyone knew the crash was coming but the feds were still signing up any warm body they could find.\u00a0 28% of the low-money-down loans failed.\u00a0 And by 2011, lending restrictions were so tight nobody could qualify for a house so none of those loans went bad, which makes the overall percentage look even better but means millions of people lost homes they should never been able to buy in the first place.<\/p>\n<p>&nbsp;<\/p>\n<p>I can\u2019t help but wonder if this is the start of another boom-bust cycle in housing.\u00a0 Are we intentionally repeating the mistakes of the past because it would be politically incorrect not to?\u00a0 Has fiscal sense gone completely out the window?<\/p>\n<p>&nbsp;<\/p>\n<p>Joe Doakes<\/p><\/blockquote>\n<p>Or does crisis become the current regime?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Joe Doakes from Como Park emails: Fannie Mae used to allow 97% loan-to-value meaning you only had to have 3% down to buy.\u00a0 After the crash, they lowered that to 95% meaning borrowers needed to save up 5% to buy.\u00a0 It turns out women and minorities are hardest hit by that change.\u00a0 So Fannie Mae [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[57,74],"tags":[],"class_list":["post-54211","post","type-post","status-publish","format-standard","hentry","category-economy-and-the-market","category-the-great-recession"],"_links":{"self":[{"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/posts\/54211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=54211"}],"version-history":[{"count":3,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/posts\/54211\/revisions"}],"predecessor-version":[{"id":54215,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/posts\/54211\/revisions\/54215"}],"wp:attachment":[{"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=54211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=54211"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=54211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}