San Diego could thrive from pain
Wars. Promiscuous printing of money. Could San Diego cash in next year?
Don Bauder, SAN DIEGO READER
Wednesday, December 17, 2014
And real estate? The Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac), which together guarantee 90 percent of new mortgages, are loosening up lending standards, lowering the minimum down payment on a mortgage to 3 percent. That will help housing. But Fannie and Freddie almost went under in the 2008 calamity. Excessively easy home-lending standards were a major cause of the crisis. Looking at that 3 percent figure, Kelly Cunningham, economist for the National University System Institute for Policy Research, harrumphs, “We went through a bubble before, and now they are doing everything they can to reinflate that bubble.”