David Lereah: The lender community got caught with their financial pants down, and now they’re afraid to make the loans. A lot of households that do have the financial wherewithal to purchase the homes are now unable to do so.
David Lereah: The lender community got caught with their financial pants down, and now they’re afraid to make the loans. A lot of households that do have the financial wherewithal to purchase the homes are now unable to do so.
[blockquote]Ohlbaum says more than 10 percent of his deals have fallen through in the last few weeks — up from less than 1 percent. He says many people just can’t get the loans they need. The same thing is happening in New York, Boston and San Jose.[/blockquote]
They cannot get the loans they need — loans for 95% of the purchase price with no income verification,. With 5% down and required income verification, it turns out that they can’t get the loans, because they do not have sufficient income that can be verified.
And this is bringing down the US economy? Why, because we gave a lot of unqualified people loans they couldn’t afford and inflated the housing market.
NPR is basically the liberal extension of the Democratic Party/TEC, so you have to take what they say with “that” agenda in mind.
Translated: We don’t listen to NPR.