Arnold Kling  

Government in the Mortgage Business

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The New York Times reports,


"This is subprime lending done right," said John Taylor, president of the National Community Reinvestment Coalition, an umbrella group for 600 community organizations, and a staunch critic of the lending industry.

He is talking about a Fannie Mae program that allows borrowers to buy homes with no money down.

Taylor, unlike me, was invited to participate in the Treasury summit on the future of housing finance that was held this summer.


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COMMENTS (5 to date)
ThomasL writes:
Les Cargill writes:

So the guy now has a house payment of 40% of *net* income - pre-tax. And this is *with* counseling?

Okay, so say his wife makes $8 an hour. That's a whopping 26% of both incomes. Only if she gets $10 an hour, it's under 25%. Of net. One baby later...

Yarg.

AB writes:

That quote is bad, but it gets worse. On page 2:

“But I look at it as an investment,” she said, adding that a similar house in the neighborhood was on the market for $120,000.

Buying a house is an investment, because prices always go up!

Doc Merlin writes:

Please tell me this isn't the same John Taylor as the economist.

Steve Sailer writes:

No, he's John Taylor, head of the National Community Reinvestment Coalition (the "nation's economic justice trade association of 600 community associations"). By the way, he's a handsome son-of-a-gun, who looks like a cross between John Connally and Nathan Lane.

Here's a graph from his trade association showing "$4.2 trillion in CRA dollars was committed from 1992 through 2005:"

http://vdare.com/sailer/090215_cra.htm

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