Conspiracy theorists, can you form a good theory on this one.?
In 2001ish, the FHA controlled about a 30% market share in the mortgage business. Then the sub prime lenders came and knocked the FHA down to about a 5% market share. In 2006ish the FHA went to congress and asked to change their charter, so they could compete. Quickly, they were turned down. In succession, the bankruptcy laws were changed, then the minimum credit card payment was raised, and by coincidence, the three largest sub prime lenders were "investigated for fraud" which coincidently dropped their stock price 75%, which coincidently was how they got their lines of credit to fund mortgages. When the numbers come out for the first quarter this year, FHA will hold a 75% market share or so.
I think something is going on here, but I am not sure what. Can you help me out?
Also, there are a lot of 2/28 and 3/27 sub prime ARMs that would not be in foreclosure if there were still sub prime lenders to refinance into sub prime fixed, or even another ARM.
- Anonymous1 decade agoFavorite Answer
" just another act of opression perpitrated by the Man to keep a brother down"Source(s): Homey D. Clown
- zzoneLv 71 decade ago
Democrat Racketeering, Clinton is the one who said "do it", even to people that could not afford it. Blame Clinton.
- DilligasLv 61 decade ago
It was the Bush twins that did this on their dads orders. It was payback for getting busted for drinking underage.
- 1 decade ago
They will just say Bush caused it all.
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- Anonymous1 decade ago