Friday, January 15, 2016

“We’ve just legalized mortgage fraud.”

“We’ve just legalized mortgage fraud.” That's Kevin Williamson, writing at the National Review, and I can't think of a better way to summarize it.  More:
But Fannie Mae, the organized-crime syndicate masquerading as a quasi-governmental entity, has other ideas. Under its new and cynically misnamed “HomeReady” program, borrowers with subprime credit don’t need to show that they have enough income to qualify for the mortgage they’re after — they simply have to show that all the people residing in their household put together have enough income to qualify for that mortgage. We’re not talking just about husbands and wives here, but any group of people who happen to share a roof and a mailing address. And some non-residents can be added, too, such as your parents.

That would be one thing if all these people were applying for a mortgage together, and were jointly on the hook for the mortgage payments. But that isn’t the case. HomeReady will permit borrowers to claim other people’s income for the purpose for qualifying for a mortgage, but will not give mortgage lenders any actual claim against that additional income.

This is madness.
Madness, indeed.  But it seems of a piece with our government's careening toward socialism and fantasy-based reckoning...

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