We are a commune of inquiring, skeptical, politically centrist, capitalist, anglophile, traditionalist New England Yankee humans, humanoids, and animals with many interests beyond and above politics. Each of us has had a high-school education (or GED), but all had ADD so didn't pay attention very well, especially the dogs. Each one of us does "try my best to be just like I am," and none of us enjoys working for others, including for Maggie, from whom we receive neither a nickel nor a dime. Freedom from nags, cranks, government, do-gooders, control-freaks and idiots is all that we ask for.
Denise Tejada bought a house last month at the age of 20, thanks in large part to a loan guaranteed by the Federal Housing Authority. This story offers a dramatic demonstration that, despite the housing bubble causing the worst economic downturn in generations, the ideology of home ownership is alive and well in the United States and still being supported by the government.
Without question, Tejada's loan is toxic--to her and to the taxpayers who are backing the loan. Her house cost $155,000. Tejada's loan was apparently made on a micro-down payment of just 3.5%, the minimum down payment to qualify for an FHA loan. On top of this, however, she got an additional government backed loan to make improvements. Her total loans amount to $183,0000. In short, she was immediately underwater on her new house.
Talk about slow learners! Liberals take the cake. They started this whole housing mess by passing into law the Community Reinvestment Act, back in 1977 or 78, because they thought it would be nice if low income folks could own their own homes, even if they would be ineligible by normal banking rules, which require a certain level of income to qualify for a certain level of mortgage loans, and that the mortgagees not have bankruptcies and other signals of financial ineptitude on their records which indicate a lack of a sense of responsibility for one's debts. Banks traditionally did investigations which would uncover these evidences of ineptitude, but the government forbade them to disqualify mortgagees with these facts.
Talk about a recipe for disaster. And disaster happened.