Our Real Estate Recession

My opinion on the root cause of our current housing bust started back with the Clinton administration. The thinking was to make housing more affordable for the masses. A noble idea, but as usual, the government’s implementation was based on easing of the traditional mortgage qualifying rules.

If lenders wanted to expand their operations there was an understanding in order to get government approval they had to comply with the easing of mortgage qualifying rules. Further, the government told the lenders not to worry about because the two semi-government agencies, Fannie Mae and Freddie Mac, would purchase all these substandard loans.

That is my opinion, and a sure to be debated explanation of how we ended up in this horrific housing situation.

downtown San Diego real estate