Now that the feds have taken control of Fannie and Freddie, I hope they realize that further tightening of underwriting criteria will only exacerbate our current housing crisis and will likely lead to more bank failures and billions of dollars in taxpayer dollars. There is no question that the availability of mortgage credit got far too liberal in recent years but the pendulum can swing too far the other way and cut off affordable credit to millions of qualified and deserving homebuyers. Until home prices stabilize the market will continue to get worse and reducing the pool of potential homebuyers will cause even greater downward pressure on prices. The feds need to start opening up the flood gates - at least a slowly. Hopefully this weekends action will be a move in the right direction. GA  

Tags: Bernake, credit, fannie, finance, foreclosure, freddie, gse, housing, mortgage, Paulson, Treasury

This entry was posted on Sunday, September 7th, 2008 at 12:30 am and is filed under The Housing Market. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.