Once again I hope that informed logic trumps the soap-selling hype that is all-pervasive in today's media. I am linking here to Lou Barnes of Boulder West Financial Services. Please take a moment to read this. Here Lou compares and contrasts today's credit woes to that of the 1930's.
During that time the government sprang into action and created the FHA - Federal Housing Administration as part of the National Housing Act of 1934 to help contain the rise in foreclosures.
FHA had it's problems regarding lack of urban loans and pervasive racial downgrading that hurt inner cities. FHA is now part of HUD, whose mission has changed from urban development and now focuses on housing.
FHA underwriting guidelines were (and are) a solid benchmark. There may always be a need for certain creative mortgage programs but largely it's the tortoise who wins the race.
We already know that the Americans are a tough bunch, and ready for the challenge. Some intelligent leadership would be a good thing right now. The tools are already here. Let's get back to basics!
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