After two foreclosures and two bankruptcies, Hermes Maldonado, a Honduran immigrant, recently qualified for an FHA loan for a home in the Los Angeles area.
"After everything that happened, thank God I was able to buy another house."
How can that be possible three years after the collapse of the last housing bubble? Yet Obama is at it again. The Federal Housing Administration is rebanking the same borrowers who defaulted during the last housing bubble. The FHA is pushing home loans to so-called rebound borrowers who recently defaulted on past mortgages.
"The agency is allowing lower-income borrowers to get loans just three years after foreclosure with as little as 3% down and lousy credit scores. In fact, a whopping 40% of newer FHA-backed loans are subprime."
Another bubble, another crises, more government control? Home ownership is a moral imperative, reality be dammed? You got me.