All Commentary
Thursday, December 10, 2009

Bad Lending Still a Problem

“The trouble signs surrounding Lend America had been building for years … Home loans made by its headquarters were defaulting at an extremely high rate … Yet despite these red flags, a little-known federal agency continued giving its blessing to Lend America, allowing it to do business in the name of the U.S. government. The Government National Mortgage Association, known as Ginnie Mae, authorized the firm to bundle its mortgages into securities and sell them to investors around the world — all backed by U.S. taxpayer money.” (Washington Post, Thursday)

There is still plenty of fuel on the fire.

FEE Timely Classic:
Can the Feds Save the Housing Market?” by Robert P. Murphy