I listened to Dr. Rosen on CNBC and with all due respect, he is wrong.


He claims that the only reason the housing market has issues is that the lending world is way too tough. He is about 1–2 years late.

The lending is NOT tough. The subprime guys are back, the no docs are back and it is exactly where it was in 2005ish just without the negative amortization option arms.

Actually, Fannie Mae allows things that they did not allow years ago, like 5% down with a co-signer. Also, the non-bank lenders have figured out how to self-insure and give a good product.

Yes, there are people that can’t get a mortgage, but that is because they can’t qualify based on the house price. If the prices were lower, people could get homes. Also, real estate taxes, homeowner’s insurance and flood insurance have all increased significantly and that hurts qualifications because those amounts are part of the calculation in order to qualify.

I can get deeper into numbers and have a debate with him or anyone else who is all about just getting regulations repealed. Yes, it is a pain in the ass to get forms filled out that make no sense. I agree with getting rid of some of the over-stupid stuff, but to roll back full controls is obnoxious and categorically repulsive.

I can get someone a mortgage with 3.5% down payment on a loan up to over $600,0000 with a 580 (crappy) credit score, a 2 year work history with all the money coming as a gift. Hello!

UPDATE: Freddie Mac has now announced help for people with no credit. http://realtormag.realtor.org/daily-news/2017/03/28/freddie-aid-those-without-credit-scores?om_rid=AAFBtM&om_mid=_BY2rm9B9aI5zpq&om_ntype=RMODaily