Freddie Mac (FMCC)

[955]

Fannie and Freddie provide affordable housing over the long term, yet affordable housing is still a major problem in this country. The root cause of the affordable housing problem is hinted in the quote below from the article linked below. Politicians refuse to acknowledge it since they caused it. Their solution, low income housing and loan forgiveness. It is a problem of shortsightedness on their part.

From the article:

Of course, the problem is the places with lower housing costs tend to have lower wages and less available jobs, which makes it hard for folks to move to those areas.

Over the past half century, HIGHER PAYING manufacturing jobs have been exported to foreign countries, mainly Communist China, where wages are significantly lower netting much greater profits for US companies. Furthermore, for every manufacturing job, there are 6-10 additional jobs needed to support it (lower unemployment). Bring back the higher paying, lower unemployment manufacturing jobs and the people will once again be able to afford housing.

Problem with getting a loan:

Others explained the risk the lender takes on, to showcase why mortgage companies may deny loans applicants think they can afford.

"The HUGE difference is the risk taken by the bank vs the landlord," replied another Redditor. "Landlord risk if you do not pay-kick you out and find someone who will. 12 months lease. Bank risk-15-30 year mortgage ~$200,000 or more. All the possibilities for you to default within 15-30 years."

Banks look at risk. Once again, manufacturing jobs are lower risk in that they are longer term. Job security. Banks definitely take that into account when considering a 15-30 year mortgage. Take this from someone with first hand experience.

skeptic7
43 minutes ago
#750224 RE: 955 #750222

#irony

https://www.msn.com/en-us/money/realestate/millennials-and-gen-z-speak-out-the-real-struggle-to-buy-a-home/ar-AA18b7ey?ocid=msedgdhp&pc=U531&cvid=eebc7aa6d1a14adf81e009e6a0ba8529&ei=10