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Stupidity

Faster horses

Well-known member
Democrats Vote Down 5 Percent Rule

In a bid to stem taxpayer losses for bad loans guaranteed by federal housing agencies Fanny Mae and Freddy Mac, Senator Bob Corker (R-Tenn) proposed that borrowers be required to make a 5% down payment in order to qualify. His proposal was rejected 57-42 on a party-line vote because, as Senator Chris Dodd (D-Conn) explained, "passage of such a requirement would restrict home ownership to only those who can afford it." :shock:

I can't add anything to this.







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Faster horses

Well-known member
Took me a little bit to find it on snopes. Here is what I found.
The debate was real, the quote wasn't. :shock:

According to snopes: "Many people believe a tightening of lending
practices would keep similar economic collapses from happening."

Darn, I lost it from snopes and am having trouble finding it again.
I'll keep trying.
 

Steve

Well-known member
For the record, Dodd and the Democrats did oppose Corker’s amendment, S.A. 3955, which would have rewritten whole sections of the Restoring American Financial Stability Act of 2010. (The 5 percent requirement was but one small part of Corker’s proposal.) Dodd said one reason he opposed the measure is that it would have disadvantaged homebuyers with good credit and income, but without the cash to make a 5 percent down payment.

I would agree to part of what Dodd says... once having a VA zero down loan.. but... with out some "investment" in a home... many Americans choose to walkaway from their responsibilities..
 

hypocritexposer

Well-known member
Steve said:
For the record, Dodd and the Democrats did oppose Corker’s amendment, S.A. 3955, which would have rewritten whole sections of the Restoring American Financial Stability Act of 2010. (The 5 percent requirement was but one small part of Corker’s proposal.) Dodd said one reason he opposed the measure is that it would have disadvantaged homebuyers with good credit and income, but without the cash to make a 5 percent down payment.

I would agree to part of what Dodd says... once having a VA zero down loan.. but... with out some "investment" in a home... many Americans choose to walkaway from their responsibilities..

Without the down payment or equity, it is no different than a renter walking away from a lease/rental agreement.
 

Steve

Well-known member
hypocritexposer said:
Steve said:
For the record, Dodd and the Democrats did oppose Corker’s amendment, S.A. 3955, which would have rewritten whole sections of the Restoring American Financial Stability Act of 2010. (The 5 percent requirement was but one small part of Corker’s proposal.) Dodd said one reason he opposed the measure is that it would have disadvantaged homebuyers with good credit and income, but without the cash to make a 5 percent down payment.

I would agree to part of what Dodd says... once having a VA zero down loan.. but... with out some "investment" in a home... many Americans choose to walkaway from their responsibilities..

Without the down payment or equity, it is no different than a renter walking away from a lease/rental agreement.

the big difference is who is holding the note...

on a rental,, the landlord can often rent the unit after "modest repairs".. taken from a security deposit... and often the bad tenant leaving is better then having to evict them...

in a foreclosure.. if the looser walks away from their responsibility the lender still has to go through the process.. and it is a long process that is complicated by lending rights and bureaucracy..

often leaving the unit off the market for years.. then the rundown. neglected property must be sold ..(often at a loss)

and often with US as taxpayers and investors holding the note... so why should we give loans (or worse be forced to loan) with out a down payment?
 
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