“In an attempt to increase homeownership, particularly by minorities and the less affluent, an attack on underwriting standards was undertaken by virtually every branch of the government since the early 1990s,” Liebowitz writes. “The decline in mortgage underwriting standards was universally praised as ‘innovation’ in mortgage lending by regulators, academic specialists, (government-sponsored enterprises) and housing activists.”
As I’m not a conservative (I am anti-liberal and pro-traditional) I am skeptical of this source, but it seems they’ve done their homework. The goal was, as always, benevolent through pity: get more minorities owning homes. The method was as usual to assume that business money is free money, and to force them to lend to people who couldn’t sustain the loans, thus resulting in more minorities out of homes, but now they’re also broke.
While none of us love the idea of an economy dominating us, we need to deal with the fact that some resource — even if only intelligence — will be scarce, and we need to figure out how to divide it up logically. One way is to take care of those who are basically competent, and let everyone else do the best they can, knowing that no one plan will work for every person, group or area.
Obviously, as we’re fond of pointing out at this blog, multiculturalism denies this fact and continually pits ethnic groups against each other, since they can’t coexist and retain their natural traits and cultural values — they get merged into a grey race that seems popular with Christians and liberals. Yet another failing policy in contradiction to this fact has not done anything to alleviate our pluralistic society’s path to failure.
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.
Fannie Mae, the nation’s biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.
Fannie Mae officials stress that the new mortgages will be extended to all potential borrowers who can qualify for a mortgage. But they add that the move is intended in part to increase the number of minority and low income home owners who tend to have worse credit ratings than non-Hispanic whites.
That’s retarded, in the old school sense of “not fully developed.”
We cannot subsidize the confused and less able by forcing the more sensible to cater to them. That’s against natural selection and against common sense, which is that we should invest in our best, not those who are doomed to be an underclass by lack of natural ability, by confused lifestyles, and/or by addictions. This is who always make up the underclass: the dumb, the strung out, the neurotic, etc. Why is this? Because anyone with a modicum of intelligence + hard work can escape this situation. It is not rocket science.