With the US taxpayer still backing more than 90% of all mortgages in the United States, it’s good public policy to keep mortgage lending standards tight in order to prevent future losses. Despite this simple truth, many parties would like to see lending standards loosen so facilitate reflating the old housing bubble. Lenders want looser standards on government loans so they have less risk of a put-back loss. Both lenders and homeowners want to see looser standards on all loans to increase the size of the buyer pool to help push up prices.
Tightening Government Lending Standards Would Bring Back Private Lending
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