Arizona Real Estate Notebook

“Fannie Mae Eases Credit To Aid Mortgage Lending,” New York Times, September 1999.

In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

Hmm, making loans easier to get eventually led to higher demand and higher home prices which hurt “minorities and low-income consumers.” All in all, home ownnership went from the mid 60% to the high 60% range but that was enough to let housing prices to take off.

The current housing “correction” is doing more for housing affordability for minorities and low income consumers than any government program, even the best intentioned ones.