Today's Sunday a.m. reading comes to us courtesy of the NY Times and their stellar regular columnist, Gretchen Morgenson. Her article is entitled Some Bankers Never Learn and it's about the (new, not-so-improved) rise of risky low-down loans. Title and above should link. Ms. Morgenson talks about the Dodd-Frank bill and what it would mean to the mortgage market. My favorite quote: "Basically, Wall Street would have to eat a bit of its own cooking." The columnist comes out squarely on the side of requiring all mortgage loans to have 20% down.
Although it sounds great in theory, and I love Morgenson to pieces, I need to differ with her on this. Where are people supposed to get that 20%? Considering the economic client of the last few years, how would it be possible for any middle-class person to have saved that much unless they happen to be employed in a very few select industries? Or have tapped the Bank of Mom and Dad? Yes, zero-down loans are risky -- but can't we compromise and go with 5% down loans? Unless we want to see our markets tank again?
Sunday a.m. newspaper reading with New York Times' Gretchen Morgenson
Rating: 4.5
Diposkan Oleh: jembe
