The effort to obtain affordable housing has been getting harder recently by the relining by financial institutions of neighborhoods, developments, and whole states.  The financial institutions have made it harder regardless of the credit score, down payment, or your income.  The financial institutions actions have just become unpredictable and not base on reality. 

One aspect of the problem that should not be ignored throughout the housing financing market is predatory loans.  They continue to happen regardless of what people think.  The government has been trying to decide involvement they should have on loans of these types.  Federally backing the loans is not the way to fix bad practices. 

My suggestion is that if a loan is predatory it is wrong it should be clearly criminal.  Thus, the government should take any loan that meets such a standard and give the lender a choice. 

1. Government will investigate wrong doing and either prosecute, revoke their licenses or both.

2. Lender provides a fix rate loan up to 90% of the current value of the property or what the individual can afford.  Yes, the owner makes out here.   However, the lender does not get charged with a crime either.

This entry was posted on Tuesday, March 25th, 2008 at 12:01 am and is filed under Program Development, Public Policy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.