Wells Fargo launches 3% down payment mortgage. Really?

Discussion in 'Buying & Selling Real Estate' started by baudwalk, May 27, 2016.

  1. baudwalk

    baudwalk Senior Investor

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    The usual complaint of too-tight credit keeps a segment of the population out of the home buying market. Wells Fargo is introducing a 3% down conventional mortgage in concert with Fannie Mae.

    http://www.cnbc.com/2016/05/26/wells-fargo-launches-3-down-payment-mortgage.html

    I want to scream "STUPID!" Don't these people at the bank and at the federal level remember the subprime mortgage crisis that began in 2007? Despite all the stated precautions, you know it will get screwed up. If you came in late, read about the subprime mortgage mess here.

    https://en.wikipedia.org/wiki/Subprime_mortgage_crisis

    If I were a believer in conspiracy theories, I might suspect the liberal left -- the Democrats -- are handing out party favors to gain votes to ensure Hillary's election this fall. After all, we have a flood of people coming across the southern border and as refugees from the IS/ISIS/ISIL/Daesh war-torn regions. Nah... never happen. I am imagining things.
     
  2. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I'd wager that this is being pushed by big govt - just like the corporate min wage hikes WalMart and others have done, along with some states.

    I've come across articles in the last year or 2 that indicate that the government has again been pressuring lenders to lower lending standards so that more poor, minorities, credit and budget challenged, etc can buy. :rolleyes:
     
  3. baudwalk

    baudwalk Senior Investor

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    JR, our think-alike minds are flat-out scary. :)
     
  4. JR Ewing

    JR Ewing Super Moderator Staff Member

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    What's such a travesty is that when the government enforced cavalier lending standards lead to another bubble and bust, the big government socialist party will turn around and blame Wall Street again.

    Then you'll have the heads of the investment banks once again calling up those same big govt socialist politicians to institute short selling bans against their stocks, which will lead to those CEO's donating to and singing the praises of those same politicians (who caused it all in the first place) in the next election cycle... :rolleyes:


    http://video.foxbusiness.com/v/4283714937001/john-mack-standing-by-hillary-clinton/?#sp=show-clips
     
  5. longtermbull

    longtermbull Administrator Staff Member

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    Yip, and who will feel the heat? Those who took up these 3% deposit mortgages and could not keep up with their payments. Do politicians never learn?
     

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