WAIT, does anyone in this room remember any recent history ? how about Bush’s zero down initiative?
I guess that didn’t have anything to do with it ????
October 5, 2004
President Bush’s weekend campaign promise that he will push legislation allowing for no money down on some federally insured mortgages could cost taxpayers as much as $ 500 million over four years because of a higher rate of defaults, according to the Congressional Budget Office.
The election-year idea may appeal to those who can’t save as fast as home prices are rising. But some financial planners warn that increasingly common no- and low-down-payment programs can be ruinous for some consumers — especially if home values decline.
If housing prices fall, consumers with little or no money of their own invested in the home are more vulnerable to ending up with mortgages larger than the value of the house.
Bush contends that reducing the required 3 percent down in the Federal Housing Administration mortgage program to zero down would help 150,000 first-time buyers in the first year. Homeownership rates are now about 69 percent nationwide, compared to about 64 percent 10 years ago. The FHA insures many private-lender home loans.
“To build an ownership society, we’ll help even more Americans to buy homes,” Bush said in an Ohio speech to home builders. “Some families are more than able to pay a mortgage but just don’t have the savings to put money down.”
No Barney Frank or Chris Dodds twisting “w’s” arm on the campaign trail in 2004 ?
did you right wingers forget this ?