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  • Comment Detail

  • Date: 07/20/15
    First Name: D
    Last Name: Swanson
    Organization: N/A
    City: N/A
    State: N/A
    Attachment: N/A
    Number: 2015-N-03

  • Comment

    Under no circumstances should the conforming loan limits be raised.

    The GSEs and FHA should go out of business to avoid sticking the taxpayers with a huge liability in the event of another real estate bubble collapse such as happened in 2008. The government should get out of the business of providing guarantees on mortgages. If lenders are not willing to lend for a property and borrower without a guarantee, then the loan should not be made.

    The present program has the the effect driving up real estate prices and making housing unaffordable. If borrowers can not get loans, sellers will have to reduce prices to a level where they are affordable by buyers. The current programs encourage people to buy houses they cannot afford, thereby increasing the percentage of income people have to spend on housing, reducing the income available for other needs and reducing the standard of living.

    The current system has caused runaway housing bubbles in California repeatedly. It encourages people to overpay for houses, driving up prices much faster than the inflation rate, and making housing more expensive for everyone. House prices in the coastal parts of California are now higher than the peak of the 2008 bubble due to government easy lending policies.

    Under no circumstances should the conforming loan limits be raised.