At the risk of oversimplif 3 dng slightly, fast cash Michigan fast cash Michigan I would say that a loan with a 20 percent down payment is a good loan, and a loan with a 2 percent down payment is a bad loan. With good loans, the mortgage market does not need a Government guarantee. With bad loans, a guarantee can only come to grief. If it is in the public interest for more people to own their homes, then I would suggest coming up with policies that expand home ownership, rather than mortgage indebtedness. We should try to come up with programs that encourage people to save for down payments, rather than encouraging them to take on too much debt. Instead of tr 3 dng to ensure that everyone has access to the mortgage equivalent of cheap alcohol, we should be helping people to drink less. Does the Government need to support the rental market? Then provide more gen- erous housing vouchers to renters, rather than handing out subsidies that encourage indebtedness among landlords.
Landlords, too, should have significant equity in their properties. Otherwise, at the first sign of trouble they will stop maintaining their buildings, allowing them to fall into disrepair and adversely impacting their tenants. These days, it seems as if everyone in Washington has a blueprint for restruc- turing the mortgage industry around some newly created institution or Government guarantee program.
Imagine what would happen if during a game, a team were to go through a streak of terrible shot selection, falling way behind and Maine personal loans leading the coach to call time out. Take the shots you know how to make, and stay away from low-percentage shots. From now on we are going to use a bishop, three pawns, and a rook. If the mort- gage industry stops making bad loans, then Washington does not need to come in with a new playbook and a new set of roles that people have to learn to play. With good loans, the mortgage finance business will take care of itself. The most urgent need for housing finance policy today is to ration the use of Gov- ernment-subsidized mortgage credit, which right now is excessive and out of Indiana fast loans control.
Congress will enact legislation that narrows Gov- ernment support to the single purpose of helping people purchase homes for their own use. Such legislation would prohibit Freddie Mac, Fannie Mae, and FHA from offering any support for loans to non- owner-occupied home borrowers, for cash-out refinances, for nonamortizing loan products, and for any other mortgage that fails to fulfill the purpose of helping households build up equity in their places of resi- dence. These immediate steps should be followed by legislation that reduces the meix- imum loan amount eligible for purchase by, say, 25 percent each year. Loan limits for the agencies will permit private lenders to reenter the market. Once fast cash Michigan we create a playing field in which private lenders have a chance to compete, we can reassess the need for further Government intervention.
My prediction is that we will find that the private sector is fully capable of taking care of the mortgage needs of real homebuyers. But in any event, we do not have to make that determination until we give the market a chance. As we reduce the role of Government agencies, we can monitor the behavior of the private sector and adapt our policies accordingly. If the private sector goes back to making bad loans, which I doubt will happen, we can regulate to stop that.
If the private sector leaves gaps in accessibility to good housing, we can enact pro- grams to address that. Those programs might consist of assistance targeted at spe- cific needs, rather than generic subsidies to the mortgage industry. I understand why various interest groups want to have a Government guarantee for mortgages. Without a guarantee, it is possible that the secondary mortgage mar- ket will decline in importance or perhaps even disappear altogether. We might see the market revert to old-fashioned mortgage lending, where the bank keeps your loan until you finish paying it off. I understand that it would be hard on the mortgage bankers, the Wall Street firms, fast cash Michigan the rating agencies, and the other special interests that count on the Government to prop up the secondary market.
If the same fee were charged, regardless of mortgage characteristics, it would make the institutions that use the guarantee relatively less competitive in the mar- ket for low-risk loans and relatively more competitive in the market for high-risk loans. Thus, charging for the guarantee could very well have the perverse effect of encouraging institutions to take more risk. In theory, the solution is for the Government to charge a variable guarantee fee, one which is higher for loans with riskier characteristics. Not What They Had in Mind: A History of Poli- cies That Produced the Financial Crisis. When there were busmess fatiures it was edways the result of their fast cash Michigan social obbgabons. Pc4icy makers have wanted to encourage home ownership. Subsidized mortgage credit helps to drive vp home prices, so that the effect on die home ownership is attenuated, as higher prices put homes out of reach for the marginal household. Creative Capitaksm A Conversation wrtfi BiB Gates Mbrren Buffett and Offter Economic Leaders. Not be sweet-taking, thafs for sure, Maxwell had aniron ftst irside that veNet glove of his. Maloni also called Lou Nevns and fold him that if Salomon ditfot beck off, Fannie woiMnt do busness with the bank anymore.