Who Did What To Whom

People like me, who look for the genesis of this housing problem and subsequent market meltdown, are often stymied by the bureaucrats.

 

In 2007 the bureaucrats at HUD pulled down the copy of the National Homeownership Strategy, written in 1994 under the direction of Henry Cisneros as ordered by President Clinton. President Clinton has already preempted criticism by admitting his and his administration guilt in this crises, but it is interesting nonetheless to track the issue – particularly in light of the attempted cover-up.

 

I am indebted to Joseph Mason, Associate Professor of Finance, Drexel University LeBow College of Business, Senior Fellow at the Wharton School, and Financial Industry Consultant, Criterion Economics, LLC. who brought this to light in Business Week. Fortunately for him, a colleague (Joshua Rosner) had mirrored the National Homeownership Strategy before HUD took it down in an abundance of caution considering the then coming crises.

 

Mason says in his February 26, 2008 commentary, quoting from the currently unavailable National Homeowner Strategy”:

 

(QUOTE)Chapter 4 of the Strategy deals with innovative approaches to mortgage financing that can help borrowers live in homes (I say “live in” homes because non- or negative-amortizing instruments do not help individuals buy homes). In what now appears to be rather startling language, the Strategy advocates, “…financing strategies, fueled by the creativity and resources of the private and public sectors,” to help homebuyers that lack cash to buy a home or income to make the payments,” (The National Homeownership Strategy: Partners in the American Dream, Chapter 4: Financing). It strikes me as reckless to promote home sales to individuals in such constrained financial predicaments.  (UNQUOTE)

October 10 MLS Update

There is a new listing on Alps Way, a 2,973 s.f. 3BR/3/BA  home listed at $614,900 – it is the only Meadows listing among the Zip Code with six other listings.

 

Nineteen homes in the Zip had price reductions, of which two were in the Meadows – Moon View Way is now at $469,000 (A really good price), and Boulder Knolls is now at $749,900 – almost a $50,000 reduction!

 

Five homes in the Zip went into Pending, and two homes closed in the Zip – but nothing in either category was in the Meadows.