Jane's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/162864/comments http://seekingalpha.com/article/161970-dont-blame-free-markets-for-the-crisis-they-never-existed?source=feed#comment-683316 683316 Sat, 19 Sep 2009 08:02:05 -0400 http://seekingalpha.com/article/155921-the-simplicity-of-supportable-demand-for-housing?source=feed#comment-628742 628742 Thu, 13 Aug 2009 16:00:33 -0400 http://seekingalpha.com/article/150664-10-subprime-myths?source=feed#comment-599977 599977 Thu, 23 Jul 2009 16:37:19 -0400 http://seekingalpha.com/instablog/407380-jeff-nielson/9757-the-distressing-news-about-distressed-u-s-properties?source=feed#comment-560637 560637 Wed, 24 Jun 2009 13:14:35 -0400 http://seekingalpha.com/article/144037-new-reforms-address-what-is-popular-not-important?source=feed#comment-553129 553129 Thu, 18 Jun 2009 19:58:46 -0400 http://seekingalpha.com/article/138964-housing-playing-games-with-appraisals-and-value?source=feed#comment-513429 513429 Thu, 21 May 2009 16:08:55 -0400 http://seekingalpha.com/article/120854-as-housing-market-struggles-homebuilders-focus-on-survival?source=feed#comment-392661 392661 Tue, 17 Feb 2009 17:45:49 -0500 http://seekingalpha.com/article/119894-treat-the-market-illness-not-the-symptoms?source=feed#comment-384280 384280 Wed, 11 Feb 2009 13:50:08 -0500 http://seekingalpha.com/article/119352-tim-geithner-vs-the-american-banking-elite?source=feed#comment-381654 381654
Of course, such ads/"articles" are from the housing industry. They pay a lot of money to the media to run this tripe, and therefore the media glosses over the problem. For years there were warnings that the housing market was turning into a kind of Ponzi Scheme that could cause severe damage when it collapsed. And yet for those years the media ran the industry hype and ignored consumers who begged them to cover mortgage fraud, etc. Why did they go to the media? Because law enforcement told them it was "civil." And they could not pursue the cases in civil court most of the time because suing is impractical and unaffordable, and/or they were prohibited from suing by an arbitration clause.

While I can't excuse the media for ignoring it, I REALLY can't excuse the govt from continuing to look the other way when the FBI told them the same thing--this will take out the economy and it's the industry that's doing it. And I can't excuse govt agencies that let big companies off the hook for lending law violations by paying fines.

The home buyers were in some cases wannabe investors, not really people caught up in sometimes unrealistic dreams. Of those buyers not in that category you basically have two types; those who were complicit in loan fraud, and those who were victims of loan fraud. I could get behind a bailout for victims of fraud. That amount of money would barely be felt by taxpayers and would actualy do some good, but the govt needs to go after the crooks, not just pay for their damage. I can't get behind a rescue plan for anyone else, especially the industry. The industry created this problem, and the amount of money the industry's demanding is obscene, and will probably bankrupt the country. A heck of a legacy to leave to the next generation.]]> Mon, 09 Feb 2009 18:12:44 -0500
Of course, such ads/"articles" are from the housing industry. They pay a lot of money to the media to run this tripe, and therefore the media glosses over the problem. For years there were warnings that the housing market was turning into a kind of Ponzi Scheme that could cause severe damage when it collapsed. And yet for those years the media ran the industry hype and ignored consumers who begged them to cover mortgage fraud, etc. Why did they go to the media? Because law enforcement told them it was "civil." And they could not pursue the cases in civil court most of the time because suing is impractical and unaffordable, and/or they were prohibited from suing by an arbitration clause.

While I can't excuse the media for ignoring it, I REALLY can't excuse the govt from continuing to look the other way when the FBI told them the same thing--this will take out the economy and it's the industry that's doing it. And I can't excuse govt agencies that let big companies off the hook for lending law violations by paying fines.

The home buyers were in some cases wannabe investors, not really people caught up in sometimes unrealistic dreams. Of those buyers not in that category you basically have two types; those who were complicit in loan fraud, and those who were victims of loan fraud. I could get behind a bailout for victims of fraud. That amount of money would barely be felt by taxpayers and would actualy do some good, but the govt needs to go after the crooks, not just pay for their damage. I can't get behind a rescue plan for anyone else, especially the industry. The industry created this problem, and the amount of money the industry's demanding is obscene, and will probably bankrupt the country. A heck of a legacy to leave to the next generation.]]> http://seekingalpha.com/article/117320-dap-the-bad-idea-that-won-t-die?source=feed#comment-370397 370397 Thu, 29 Jan 2009 16:56:42 -0500 http://seekingalpha.com/article/117269-cramdowns-and-refinancings-won-t-need-appraisals?source=feed#comment-370354 370354 Thu, 29 Jan 2009 16:20:13 -0500 http://seekingalpha.com/article/113398-stimulus-plan-includes-tax-breaks-stocks-that-will-benefit?source=feed#comment-347670 347670 Tue, 06 Jan 2009 13:54:28 -0500 http://seekingalpha.com/article/112936-are-home-prices-still-too-high?source=feed#comment-347049 347049
Prices have to come down to what people can afford, and that means housing has a long way to fall unless govt wants to artificially inflate INCOMES to match the too-high housing prices. People have become too jaded to high prices. They think $250K for a modest ranch house is cheap. It's not. We need to forget California's whacky prices and look at what a house is really worth, and what people can really afford. A middle class family, which is what most Americans are, should not be buying a house that cost more than about $150K, and they should have 20% down, and their total mtg pmt should not be more than a quarter to a third of their income. When those figures are in line again we can call bottom. Until then, the industry can spin all it likes, but people are tapped out and some are out of work. They're not going to buy half million dollar McMansions now. The industry needs to get over it and either change the way they do things or find another line of work.]]> Tue, 06 Jan 2009 00:10:22 -0500
Prices have to come down to what people can afford, and that means housing has a long way to fall unless govt wants to artificially inflate INCOMES to match the too-high housing prices. People have become too jaded to high prices. They think $250K for a modest ranch house is cheap. It's not. We need to forget California's whacky prices and look at what a house is really worth, and what people can really afford. A middle class family, which is what most Americans are, should not be buying a house that cost more than about $150K, and they should have 20% down, and their total mtg pmt should not be more than a quarter to a third of their income. When those figures are in line again we can call bottom. Until then, the industry can spin all it likes, but people are tapped out and some are out of work. They're not going to buy half million dollar McMansions now. The industry needs to get over it and either change the way they do things or find another line of work.]]> http://seekingalpha.com/article/113058-personal-responsibility-and-the-housing-bubble?source=feed#comment-347042 347042
As I said above, these industries sponsor networks and shows like HGTV's. They hammered the message into people's heads for years that they ought to own a home even if it mean using toxic financing. Of course they didn't call it toxic, they called it The American Dream of Home Ownership. The CEO's calling the shots at these companies were in some cases committing fraud, and they were certainly being unethical and destructive. Their pals in govt also knew. These people were in it for short term huge profits for themselves, it was never about homeowenrship. They of all people should've known it was wrong and dangerous. So let them take some personal responsibility, too, maybe by first being stopped from their incessant whine for a multi-billion dollar bailout for their industry. They should be investigated for fraud instead.

Those borrowers who lied or were complicit in fraud should also face charges. But many were not lying, they were duped, fooled, suckered...and in some cases outright defrauded by lenders forging documents.]]> Mon, 05 Jan 2009 23:59:16 -0500
As I said above, these industries sponsor networks and shows like HGTV's. They hammered the message into people's heads for years that they ought to own a home even if it mean using toxic financing. Of course they didn't call it toxic, they called it The American Dream of Home Ownership. The CEO's calling the shots at these companies were in some cases committing fraud, and they were certainly being unethical and destructive. Their pals in govt also knew. These people were in it for short term huge profits for themselves, it was never about homeowenrship. They of all people should've known it was wrong and dangerous. So let them take some personal responsibility, too, maybe by first being stopped from their incessant whine for a multi-billion dollar bailout for their industry. They should be investigated for fraud instead.

Those borrowers who lied or were complicit in fraud should also face charges. But many were not lying, they were duped, fooled, suckered...and in some cases outright defrauded by lenders forging documents.]]> http://seekingalpha.com/article/113058-personal-responsibility-and-the-housing-bubble?source=feed#comment-347038 347038 Mon, 05 Jan 2009 23:51:05 -0500 http://seekingalpha.com/article/105789-misguided-policies?source=feed#comment-305233 305233 Thu, 13 Nov 2008 12:08:29 -0500 http://seekingalpha.com/article/105739-prosecutors-going-after-fraudulent-mortgage-borrowers?source=feed#comment-305219 305219
I've seen several credible sources that state the industry is the instigator. The FBI, plus the lawyer who has the mortgagefraudblog.com site, to name just two. Add another, the IRS, which called many of the now banned down payment assistance programs a scam. FBI found years back that the industry was doing 80% of the fraud. The FBI also warned of this exact economic mess but the agency was given no resources to attack the growing problem when there was time to prevent damage.

Aside from that, some of the "buyers" are just wannabe investors, and some are crooks, (straw buyers). Straw buyers being recruited by, again, industry insiders many of the time. These are not buyers who intend to live in the house. Years ago such speculators and crooks were accused of inflating prices so people could not afford a home, and nothing was done. Why? Because it was "only" consumers getting hurt.

I do agree that some buyers who live in the houses were greedy, foolish, and at times lied to get the loan. I don't believe in going soft on buyers who did these things.

But some buyers were victims of mortgage fraud. They were certainly as much a victim if not more so than the banks now whining for a bailout. Where were these industry professionals experts when they should've been doing their due diligence? They were looking the other way, thinking of that big fat commission, and expecting to stick someone else down the food chain with the bill. Though more of this view is creeping into mainstream media, it's not near enough. The CBS's, ABC's, NBC's MSNBC's and Fox's etc's reporters still are ignoring the truth about this; that the real estate and finance industry lobbied its way into immunity for a giant fraud they perpetrated against this country, and they are not being held accountable. Blaming home buyers is a diversionary tactic as home buyers were duped, defrauded, scammed, whatever, much more than they were sophisticated criminals like industry insiders were.

Perhaps the media focuses on the little people, the liar loans and fool speculators, because that pleases the industry advertisers more. I have seen some real sacks of crap shown as an example of buyers hurt by the housing 'crisis.' Why doesn't the media show more of the actual victims of fraud, those are people who deserved the govt's help years ago when they reported the fraud and were told to just "get a lawyer." Why doesn't the govt now tell these crybaby builders, banks, etc, to just "get a lawyer?"]]> Thu, 13 Nov 2008 11:59:25 -0500
I've seen several credible sources that state the industry is the instigator. The FBI, plus the lawyer who has the mortgagefraudblog.com site, to name just two. Add another, the IRS, which called many of the now banned down payment assistance programs a scam. FBI found years back that the industry was doing 80% of the fraud. The FBI also warned of this exact economic mess but the agency was given no resources to attack the growing problem when there was time to prevent damage.

Aside from that, some of the "buyers" are just wannabe investors, and some are crooks, (straw buyers). Straw buyers being recruited by, again, industry insiders many of the time. These are not buyers who intend to live in the house. Years ago such speculators and crooks were accused of inflating prices so people could not afford a home, and nothing was done. Why? Because it was "only" consumers getting hurt.

I do agree that some buyers who live in the houses were greedy, foolish, and at times lied to get the loan. I don't believe in going soft on buyers who did these things.

But some buyers were victims of mortgage fraud. They were certainly as much a victim if not more so than the banks now whining for a bailout. Where were these industry professionals experts when they should've been doing their due diligence? They were looking the other way, thinking of that big fat commission, and expecting to stick someone else down the food chain with the bill. Though more of this view is creeping into mainstream media, it's not near enough. The CBS's, ABC's, NBC's MSNBC's and Fox's etc's reporters still are ignoring the truth about this; that the real estate and finance industry lobbied its way into immunity for a giant fraud they perpetrated against this country, and they are not being held accountable. Blaming home buyers is a diversionary tactic as home buyers were duped, defrauded, scammed, whatever, much more than they were sophisticated criminals like industry insiders were.

Perhaps the media focuses on the little people, the liar loans and fool speculators, because that pleases the industry advertisers more. I have seen some real sacks of crap shown as an example of buyers hurt by the housing 'crisis.' Why doesn't the media show more of the actual victims of fraud, those are people who deserved the govt's help years ago when they reported the fraud and were told to just "get a lawyer." Why doesn't the govt now tell these crybaby builders, banks, etc, to just "get a lawyer?"]]> http://seekingalpha.com/article/104904-it-might-be-impossible-to-stop-the-decline-of-housing-prices?source=feed#comment-301022 301022 Sun, 09 Nov 2008 08:17:02 -0500 http://seekingalpha.com/article/103594-nahb-may-be-on-its-way-to-irrelevance?source=feed#comment-297529 297529
Good builders privately admit the industry has pushed for more and more shortcuts, that seriously shorten the life of new homes and force homeowners to incur many more expenses than they should have to. If only these good builders had taken the reins a long time ago instead of letting their industry become corrupted. If only that kind of money had instead been invested in education on PROPER construction, instead of legally advising members how to protect their assets and avoid liability.

The question is, will the NAHB disappear as they should, re-emerge as some new but equally useless group, or just continue to exist as is?

It's about time good builders again took control of this industry and restored it to respectability. Maybe w/the NAHB out of the way, they can. Restoration of credibility to this industry isn't going to be done by underhanded lobbying and spin. It'll be done by building houses right and honoring their contracts, for each and every customer, every single time. Only those builders who can do that tend to survive downturns, and only those who can do that, should. Most of today's builders, including publicly traded ones, have lost their way and should not be in business. Today's houses are far too often "disposable," the owners just don't necessarily realize it until it's too late.]]> Mon, 03 Nov 2008 15:13:51 -0500
Good builders privately admit the industry has pushed for more and more shortcuts, that seriously shorten the life of new homes and force homeowners to incur many more expenses than they should have to. If only these good builders had taken the reins a long time ago instead of letting their industry become corrupted. If only that kind of money had instead been invested in education on PROPER construction, instead of legally advising members how to protect their assets and avoid liability.

The question is, will the NAHB disappear as they should, re-emerge as some new but equally useless group, or just continue to exist as is?

It's about time good builders again took control of this industry and restored it to respectability. Maybe w/the NAHB out of the way, they can. Restoration of credibility to this industry isn't going to be done by underhanded lobbying and spin. It'll be done by building houses right and honoring their contracts, for each and every customer, every single time. Only those builders who can do that tend to survive downturns, and only those who can do that, should. Most of today's builders, including publicly traded ones, have lost their way and should not be in business. Today's houses are far too often "disposable," the owners just don't necessarily realize it until it's too late.]]> http://seekingalpha.com/article/88455-down-payment-assistance-cancelled-for-builders-housing-tracker?source=feed#comment-220170 220170 DPA) programs were banned. Over the last few years I've seen them called a "scam" by the IRS because the "charities" doing them are basically just laundering money for builders. Artificial price inflation, risky loans, getting people into houses they can't afford, and increased foreclosures because of these things is NOT helping Americans achieve homeownership, it's helping Americans ruin their credit and finances for years to come. It is part of the cause of the bubble and bust. What I still find idiotic is there are still so many people in and out of the industry, and in govt, who STILL insist that we must stop the drop in house prices. This value was never real, and in some cases was fraudulent due to lenders and builder coercing appraisers to meet the number. Many appraisers have been quoted in the news saying this was going on and they'd get blackballed for not going along. Prices need to come back down to reality, to be in line with incomes. Until they do come down and consumers are again in a financial position to buy a house they can afford, with a loan that isn't risky, housing will not "recover." The economy put too much into housing, we were too dependent on this unsustainable growth and fake appreciation. It was never going to last and if the govt and industry had listened to warnings years ago, they could've reined it in before it got to this situation. Instead this industry shot itself in the foot out of greed. I don't like any bailout idea, but at least the builders didn't get their whole wish list, and at least those stupid DPA's are gone.]]> Fri, 01 Aug 2008 10:49:29 -0400 DPA) programs were banned. Over the last few years I've seen them called a "scam" by the IRS because the "charities" doing them are basically just laundering money for builders. Artificial price inflation, risky loans, getting people into houses they can't afford, and increased foreclosures because of these things is NOT helping Americans achieve homeownership, it's helping Americans ruin their credit and finances for years to come. It is part of the cause of the bubble and bust. What I still find idiotic is there are still so many people in and out of the industry, and in govt, who STILL insist that we must stop the drop in house prices. This value was never real, and in some cases was fraudulent due to lenders and builder coercing appraisers to meet the number. Many appraisers have been quoted in the news saying this was going on and they'd get blackballed for not going along. Prices need to come back down to reality, to be in line with incomes. Until they do come down and consumers are again in a financial position to buy a house they can afford, with a loan that isn't risky, housing will not "recover." The economy put too much into housing, we were too dependent on this unsustainable growth and fake appreciation. It was never going to last and if the govt and industry had listened to warnings years ago, they could've reined it in before it got to this situation. Instead this industry shot itself in the foot out of greed. I don't like any bailout idea, but at least the builders didn't get their whole wish list, and at least those stupid DPA's are gone.]]> http://seekingalpha.com/article/87565-why-the-2008-housing-relief-bill-is-no-relief?source=feed#comment-217608 217608
Builders, realtors, banks, lobbied heavily for various bailouts and their wish lists were for THEMSELVES not for homeowners as they tried to make it appear to the public.

Many of the buyers during the bubble were not planning to live in the house, at least not for long; they were flippers. And some home buyers were victims of mortgage fraud including such outrageous examples as forgery, etc. Some big co's were doing this, it wasn't just the loan shark on the corner but co's people still refer to as "big well known reputable trusted companies." Somehow many Americans still believe a "big" company automatically deserves their trust. NOT! Many insiders including big co CEOs were either arrested or are under investigation but many more need to be. And many smaller less well-connected insiders are facing trials. It's still not enough, and this action by law enforcement now is too little too late. It's not as if there were no warnings years ago!!!

I saw almost nothing accurate or complete in coverage in mainstream media--print newspapers and TV news--about the bubble or the bailout. This means most of the country still thinks the bailout is for homeowners, particularly irresponsible ones. It's obscene how twisted the main media sources are. And all these seniors who are so afraid the internet is a hot bed of crime would do well to get online at the local library and read up on reverse mortgages, mortgage fraud, etc, so they don't become the next wave of victims! All I'm really seeing on the morning news is a PUSH for seniors to get into these things with little or no warning of how to identify the scam and rare mention to get a competent lawyer before signing one. If corporate american can silence the truth about all these scams we can expect wave after wave of scandals, bubbles, etc, and if the next wave is senior mortgage scams as I believe it may be, we can all count on figuring out how to bail out our elderly parents in a few years.]]> Tue, 29 Jul 2008 14:13:22 -0400
Builders, realtors, banks, lobbied heavily for various bailouts and their wish lists were for THEMSELVES not for homeowners as they tried to make it appear to the public.

Many of the buyers during the bubble were not planning to live in the house, at least not for long; they were flippers. And some home buyers were victims of mortgage fraud including such outrageous examples as forgery, etc. Some big co's were doing this, it wasn't just the loan shark on the corner but co's people still refer to as "big well known reputable trusted companies." Somehow many Americans still believe a "big" company automatically deserves their trust. NOT! Many insiders including big co CEOs were either arrested or are under investigation but many more need to be. And many smaller less well-connected insiders are facing trials. It's still not enough, and this action by law enforcement now is too little too late. It's not as if there were no warnings years ago!!!

I saw almost nothing accurate or complete in coverage in mainstream media--print newspapers and TV news--about the bubble or the bailout. This means most of the country still thinks the bailout is for homeowners, particularly irresponsible ones. It's obscene how twisted the main media sources are. And all these seniors who are so afraid the internet is a hot bed of crime would do well to get online at the local library and read up on reverse mortgages, mortgage fraud, etc, so they don't become the next wave of victims! All I'm really seeing on the morning news is a PUSH for seniors to get into these things with little or no warning of how to identify the scam and rare mention to get a competent lawyer before signing one. If corporate american can silence the truth about all these scams we can expect wave after wave of scandals, bubbles, etc, and if the next wave is senior mortgage scams as I believe it may be, we can all count on figuring out how to bail out our elderly parents in a few years.]]> http://seekingalpha.com/article/85395-homebuilders-woo-back-first-time-homebuyers-housing-tracker?source=feed#comment-207896 207896 Thu, 17 Jul 2008 13:09:36 -0400 http://seekingalpha.com/article/84724-you-don-t-own-real-estate-it-owns-you?source=feed#comment-205247 205247 Mon, 14 Jul 2008 12:30:37 -0400 http://seekingalpha.com/article/83175-responsible-regulation-of-the-housing-market?source=feed#comment-196225 196225 Mon, 30 Jun 2008 19:16:33 -0400 http://seekingalpha.com/article/83104-oil-if-it-looks-like-a-bubble?source=feed#comment-195489 195489 Sun, 29 Jun 2008 19:24:20 -0400 http://seekingalpha.com/article/82629-is-the-fha-effectively-condoning-mortgage-fraud?source=feed#comment-193586 193586
FHA can't handle the loss and it may fall on tax payers. Getting buyers into homes with toxic financing isn't charitable, it's irresponsible. IMO we're pushed way too aggressively to become homeowners in this country. Renting isn't evil, and sometimes it's a better option. I have been both a renter and an owner. It's astounding how renters are vilified no matter how responsible they may be, no matter how senseless or unaffordable buying may be for them. But we treat them as if they're deadbeats for not owning, then expect them to become shining examples of financial responsibility when they buy a house they can't afford with a loan that's a ticking time bomb.]]> Thu, 26 Jun 2008 15:04:32 -0400
FHA can't handle the loss and it may fall on tax payers. Getting buyers into homes with toxic financing isn't charitable, it's irresponsible. IMO we're pushed way too aggressively to become homeowners in this country. Renting isn't evil, and sometimes it's a better option. I have been both a renter and an owner. It's astounding how renters are vilified no matter how responsible they may be, no matter how senseless or unaffordable buying may be for them. But we treat them as if they're deadbeats for not owning, then expect them to become shining examples of financial responsibility when they buy a house they can't afford with a loan that's a ticking time bomb.]]> http://seekingalpha.com/article/82662-the-fhas-risky-zero-down-payment-loan-program?source=feed#comment-193577 193577 Thu, 26 Jun 2008 14:56:24 -0400 http://seekingalpha.com/article/82629-is-the-fha-effectively-condoning-mortgage-fraud?source=feed#comment-192714 192714 FHA) did try to shut down some of these down payment programs but they were defeated: Mar. 2008, Sacramento Bee: sacbee.com/103/story/7... ("Sacramento-based Nehemiah Corp. of America won a key federal court ruling Monday that again blocked plans by the U.S. Department of Housing and Urban Development to ban its controversial down payment assistance program. The housing agency announced in September it would ban the program within months, arguing that it triggered foreclosures and unfairly raised the price of housing for those who could least afford it. Monday's U.S. District Court ruling followed its earlier temporary ruling that HUD had failed to supply a reasoned analysis for its decision and didn't consider reasonable alternatives.")

The IRS has called some of these programs a scam because they don't operate as non profits under IRS rules. irs.gov/newsroom/artic...

Other sources over the past few years said down payment assistance programs are a way for sellers/builders to launder money. This is the only way they can make sales, and yesterday a builder was quoted in news about this saying exactly that; that it's the only way they can sell.

I'm not a fan of HUD. IMO they sat by and watched builders build shoddy new houses and breach the warranty and so long as HUD didn't eat too much of the cost the agency didn't seem to care much. They didn't seem to care if 3rd party home warranty co's were more a marketing tool than actual protection for home buyers either. But when they (HUD/FHA) started having to absorb the PREDICTABLE losses as a result of mortgage fraud, they suddenly started caring about WHY these things were happening. HUD isn't going to ride to any consumers' rescue, but they may be trying to ride to their own. If there's something good that comes out of that for consumers, it's incidental, but I'll take it.]]> Wed, 25 Jun 2008 13:32:45 -0400 FHA) did try to shut down some of these down payment programs but they were defeated: Mar. 2008, Sacramento Bee: sacbee.com/103/story/7... ("Sacramento-based Nehemiah Corp. of America won a key federal court ruling Monday that again blocked plans by the U.S. Department of Housing and Urban Development to ban its controversial down payment assistance program. The housing agency announced in September it would ban the program within months, arguing that it triggered foreclosures and unfairly raised the price of housing for those who could least afford it. Monday's U.S. District Court ruling followed its earlier temporary ruling that HUD had failed to supply a reasoned analysis for its decision and didn't consider reasonable alternatives.")

The IRS has called some of these programs a scam because they don't operate as non profits under IRS rules. irs.gov/newsroom/artic...

Other sources over the past few years said down payment assistance programs are a way for sellers/builders to launder money. This is the only way they can make sales, and yesterday a builder was quoted in news about this saying exactly that; that it's the only way they can sell.

I'm not a fan of HUD. IMO they sat by and watched builders build shoddy new houses and breach the warranty and so long as HUD didn't eat too much of the cost the agency didn't seem to care much. They didn't seem to care if 3rd party home warranty co's were more a marketing tool than actual protection for home buyers either. But when they (HUD/FHA) started having to absorb the PREDICTABLE losses as a result of mortgage fraud, they suddenly started caring about WHY these things were happening. HUD isn't going to ride to any consumers' rescue, but they may be trying to ride to their own. If there's something good that comes out of that for consumers, it's incidental, but I'll take it.]]> http://seekingalpha.com/article/81786-what-happens-when-builders-fail-housing-tracker?source=feed#comment-188016 188016 Wed, 18 Jun 2008 18:20:17 -0400 http://seekingalpha.com/article/81619-subprime-lawsuits-and-more-exec-ousters-housing-tracker?source=feed#comment-187126 187126 Tue, 17 Jun 2008 12:25:55 -0400