Posted by Mark at 11:15 AM TweetThis
Back in 2007/2008 I was harping on the disaster that was Fannie and Freddie - as they took step after step that pushed them into more risk. [Feb 27, 2008: OFHEO Increases Allowance for Fannie Mae] [Mar 19, 2008: Fannie, Freddie Layered with MORE Risk] We know how that turned out. [Sep 7, 2008: Bailout Nation Continues - Fannie/Freddie Now Owned by You]
I then turned to the FHA - which I frankly have not written a piece about in at least 18 months. Once a bit player in the mortgage market, this organization began doing a lot of "stoopid" things as well. I had a litany of warning posts throughout 2009:
Warning: [May 6, 2009: FHA - The Next Housing Bust]
Warning: [May 8, 2009: Minyanville - Subprime Lending is Back with a Vengeance]
Warning: [May 13, 2009: Tax Credit as Mortgage Down Payment Now Official Federal Government Policy]
Warning: [Jul 6, 2009: WSJ - No Money Down or Negative Equity Top Source of Foreclosures]
Warning: [Aug 12, 2009: WSJ - The Next Fannie Mae - FHA/Ginnie Mae]
Warning: [Aug 14, 2009: Ginnie Mae CEO Resigns After 1 Year on the Job]
Warning [Sep 18, 2009: Washington Post - FHA's Cash Reserves Will Drop Below Requirement]
Warning [Oct 14, 2009: NYT - FHA Problems Raising Concerns of Policy Makers]
Warning [Nov 18, 2009: Toll Brothers CEO: "Yesterday's Subprime is Today's FHA"]
Warning [Nov 20, 2009: NYT - With FHA Help, Easy Loans in Expensive Areas - Barney Frank Pushes for Permanent Higher Limits, Approaching 1 Million]
The problems were very
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Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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