Wednesday, August 17, 2011

House of Cards - The American Mortgage Crisis

Airing in late 2009, this exclusive CNBC special, "House of Cards" was supposed to be an accurate depiction of the national mortgage crisis. Watching it yesterday, I can only wonder if it was totally accurate.

Don't get me wrong. We have suffered a mortgage crisis here in the U.S., mostly due to greed and unscrupulous lenders, investors and politicians. And while most of this video is accurate, there are a few facts that were left out.

The beginning of the special starts it's focus on the housing market AFTER 9/11 (2001). While that certainly was a point to begin their presentation, the fact remains that this crisis began back in the 1970s when Jimmy Carter was president. Carter (and Congress) wanted to make housing more accessible and affordable for those who could not buy a home. Inflation was at an all time high, and mortgage interest rates were in the double digits. To get the economy back in sync with incomes, Carter wanted to open up homebuying to more people.

During Clinton's administration, the president and Congress wanted to continue to open the floodgates for more homeowner, so rules and laws expanded. Barney Frank led the way because his hands were in the pockets of Fannie Mae and Freddie Mac. During the next administration, Bush wanted it expanded, too, but soon after, realized that we were in trouble. He pulled back and begged Congress to tighten things up in the mortgage industry. Too bad and too late. With Barney Frank leading the way, mortgages that required NO DOCUMENTATION (stated income) with NO DOWN PAYMENT were now the norm.

The blame did not lie just with the government. Greed set in on Wall Street and in local mortgage lender's offices to get more, make more. Unfortunately, many who are to blame, refuse to take responsibility for this crisis. You get the overall gest of the problems in this video. If you click HERE, you can see the chilling effect that this crisis has had on our country.

If you want a savvy real estate agent on your side, give Jack a shout. He knows the market and how to help you buy and/or sell a home.

1 comment:

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