by: the Common Constitutionalist:
It’s déjà vu all over again! Reports are coming in that the federal government is once again relaxing the rules regarding mortgages. The new rules being adopted by both Fannie Mae and Freddie Mac, the quasi-government mortgage insurers, decreased the down payment requirements from 5% to 3%.
Mel Watt, director of the Federal Housing Finance Agency said, “Through these revised guidelines, we believe that the enterprises will be able to responsibly serve a targeted segment of credit worthy borrowers with lower down payment mortgages by taking into account compensating factors. It is yet another much-needed piece to the broader access-to-credit puzzle.”
You may have noticed that Watt used the code words, “targeted segment”, which of course means minorities.
So who is Mel Watt? Well back in January, IBD warned us all of who he is. They wrote: “We warned that Watts swearing in as head of the Federal Housing Finance Agency would mark the start of the next housing bubble. We pointed out the Congressional Black Caucus former head has a soft spot for those who can’t afford homes and that as a Democrat lawmaker he pressed Freddie to lend even to ‘welfare recipients’ in his district.”