…”It was certainly caused by both parties but had nothing to do with lack of regulation, it was regulation that caused the problem. It was oversight and regulation that Congress mandated affordable housing initiatives on the GSE’s that created this fiasco. They took a small niche and created a marketplace that the private sector could never have done to that magnitude. “And the idea that lenders and brokers should have denied financing to clients many of which were of a protected class even though they meet the guidelines established to promote affordable housing is ludicrous. If we allow consumers who meet guidelines established by the GSE’s to purchase home we are predatory lenders, if we don’t we are redlining. Give me a break…”Lastly, I think that the whole ‘Bush regulation’ stuff is a myth as well. The current Democratic front-runner is confusing the deregulation that led to the S&L crisis back in the late 80s/early 90s which actually came from Carter not Reagan as many don’t know. The deregulation came from Carter and then when Reagan and Tip closed tax incentive loophole it devalued their (real estate value’s) worth and started the crash.””, Excerpt from June 2016 Mortgage Industry Newsletter

Michael W. Perry