So it appears that the federal government is implementing another destined-to-default high-risk mortgage plan. This new move is wrong-headed and dangerous, and only places more risk on the heads of American taxpayers and their children. Its simply not credible that those in charge of devising and implementing a program like this don’t see what a huge risk this program really is. At some point a reasonable person could wonder if it’s being done intentionally to help bring about a new “better” economic system. All I know is that the folks in charge seem to be ignoring not only history, but also basic economic principles.
The Obama regime is rolling out a new low-income mortgage program that, for the first time, lets lenders qualify borrowers by counting income generated by non-borrowers living in the household. What could go wrong?