You, the taxpayer, will. And I will. And our kids.
And there's further corroborating evidence in this article:
Santa Cruz Sentinel: Fannie/Freddie Announce 2009 Limits
It's an article by Peter Boutell, an apparent mortgage professional, in which he laments the fact that Fannie and Freddie's recently-released 2009 mortgage guidelines won't provide "...some much-needed relief for refinancing homeowners and homebuyers."
I'll tell you who needs relief: Responsible spenders and savers. Because we're the ones who're footing the bill for this nation overflowing with financial morons.
But I ask you, Dear Reader, to get a load of this taxpayer-backed insanity:
Stay tuned to see if Freddie and Fannie will be further tightening their underwriting guidelines. There have been rumors that they will not allow a borrower's debt-to-income ratio DTI to exceed 45 percent, even for loan amounts under $417,000. That change would drive even more business to FHA loans, where DTIs up to 55 percent are allowed. Freddie and Fannie have been allowing DTIs up to 60 percent for loan amounts under $417,000.
Debt-to-income ratios of 45 and 55 percent? Seriously?
Seems to me that the U.S. government has made it abundantly clear that housing prices must be propped up at all costs. Otherwise, the Citibanks and other megabanks of the world (and by extension, our financial system) are in deep, deep doo-doo. (Well, they already are, but you know what Grandpa always said about how stuff "...could always be worse.")
If you folks aren't big-picture nervous yet, you should be.
Labels: Mortgages
