Originally Posted By: blue water pro
Urban myth.

Produce one economist who shares the opinion, it's just not true.
You blame Freddie & Fannie inadvertantly caused FHA eased their underwriting...and therefore Wall Street comps were free to write what they wanted? Is that what you are saying?

http://www.ticker.com/?page=investment_c...le&id=47278


It isn't an urban myth, it is fact. I think I am pretty qualified to comment on it also as I am a certified residential real estate appraiser who is also FHA certified.

I don't know any economists and I don't typically do the C/P deal. However if that is what you want, read this and learn a little bit. This guy at the NY Times had more foresight than anyone. Note the date on the article. I'm sure you would like to expand your knowledge a little bit.

NY Times

My favorite paragraph is the last one.

"In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's."