Chris Dodd doesn’t believe home ownership should be restricted to only those who can afford it

June 6th, 2010 8:00 pm  |  by  |  Published in congress, Economics, Housing, Market Regulation, Money, moral hazard, Politics  |  27 Responses

Wasn’t a major part of the housing bust due to the fact that too many loans were given to those who never really had the means to repay?

In a bid to stem taxpayer losses for bad loans guaranteed by federal housing agencies Fanny Mae and Freddy Mac, Senator Bob Corker (R-Tenn) proposed that borrowers be required to make a 5% down payment in order to qualify. His proposal was rejected 57-42 on a party-line vote because, as Senator Chris Dodd (D-Conn) explained, “passage of such a requirement would restrict home ownership to only those who can afford it.

What’s wrong with these people?

Responses

  1. Gary P Salmon says:

    June 7th, 2010 at 2:04 am (#)

    Okay Sen Dodd, would you approve of giving a home loan to an illegal alien who can't afford a monthly mortgage, but wants to move into the home next door to you in Connecticut?

  2. clarke says:

    June 7th, 2010 at 2:00 pm (#)

    This is nothing more than plain lunacy! Yes, that's the idea, purchase ONLY what you can afford!! Mr. Dodd . . . you are a moron!!!!!!!!!

  3. Rick says:

    June 7th, 2010 at 3:49 pm (#)

    It's not lunacy, it's a joke:
    http://azconserv1.wordpress.com/2010/05/15/presid

    I mean, seriously, it's a joke. Try checking your sources before believing everything.

  4. tom says:

    June 13th, 2010 at 3:35 am (#)

    Chris Dodd is an Idiot.

  5. Phil says:

    June 17th, 2010 at 12:28 am (#)

    This is incredible stupid!! Not everybody can afford or should be able to buy everything they want — nnless, of course, he wants to have the government buy me the boat I've always wanted.

  6. bob says:

    June 17th, 2010 at 4:55 pm (#)

    Rick, I just clicked on the link you provided and it has the same quote by Chris Dodd as is posted everywhere else on the internet. What sources are you referring to?

  7. Brett says:

    June 17th, 2010 at 7:19 pm (#)

    Wanting makes life more exciting. If you are just given something without having to really work hard for it you'll never appreciate it!

  8. steve s says:

    June 17th, 2010 at 9:45 pm (#)

    Under the traditional loan practice when I was just graduating college in 1990 you needed 20% down or 10% but then further financially burdened with mortgage insurance. So, a college educated engineer making 29K per year (gross) would have to save up 20 grand while at the same time paying rent to get “into” a home where his house payment would be about the same as rent. Makes MUCH more sense to me, especially if trying to stimulate the economy, to provide an avenue where such a person (good job, good credit) could get into a home 5 to 10 years sooner! The problem comes from lending to bad credit risks – not from lowering the down payment to make the option to buy a home more accessible to those with good credit.

  9. Skip Chatterson says:

    June 17th, 2010 at 11:22 pm (#)

    This is not a surprise coming from a man who said Fannie Mae and Freddie Mac are in good shape and do not need regulation. The surprise is how is Chris Dodd not in prison? Check out more stories at http :www.redstatereport.com

  10. abi says:

    June 18th, 2010 at 12:42 am (#)

    You may wish to check your source a little more closely — "By John Semmens: Semi-News — A Satirical Look at Recent News." Or perhaps take a look at http://factcheck.org/2010/06/satire-alert-dodds-q….

  11. lisa says:

    June 28th, 2010 at 1:30 am (#)

    That statement is outrageous!!! Why would we want to make more bad debt on top of what is already there !! If you can't afford it don't buy it….. This is why tax bases are inflated and properties are down graded…. If there is someone in your neighborhood that can't afford a house they moved into; they stop paying the mortgage, which means no tax base which leads to foreclosure, which will result in your property value going down…. Isn't this just like bad credit card debt !! Hasn't the government learned that you can't keep lending money to those that have no means of paying!!! Then the guy who is struggling every day to make the money to pay their bills gets the reward of a higher interest rate and told that they can't get help because they aren't behind enough on their payments !!! This is crazy, unless the people make a stand on the government that was put into place to listen to the people and to protect the people and represent the people,, then you will always have taxation without proper representation….. Not a good thing !!! This is suppose to be the United States of America,, Where is our Unity from the government !!!

  12. Lee says:

    June 30th, 2010 at 11:29 pm (#)

    So do you think Factcheck.org has a liberal slant? Maye not as liberal a slant as snopes!

  13. obamanation_ says:

    July 1st, 2010 at 5:46 am (#)

    Good point, Steve S! I was in this situation 5 years ago. I was only able to put 5% down, but as of last month, my mortgage is completely paid off. What the government should really do is get their nose out of everyone's business and let the lenders decide for themselves to whom they want to loan money, and under what conditions.

  14. obamanation_ says:

    July 1st, 2010 at 1:46 am (#)

    Good point, Steve S! I was in this situation 5 years ago. I was only able to put 5% down, but as of last month, my mortgage is completely paid off. What the government should really do is get their nose out of everyone's business and let the lenders decide for themselves to whom they want to lend money, and under what conditions. If a lender makes too many bad decisions, let them go out of business.

  15. Bob says:

    July 7th, 2010 at 10:29 am (#)

    What an idiot, that is what got us in the shape we are in. Thank God he is leaving the Senate.

  16. Steve says:

    July 21st, 2010 at 8:16 pm (#)

    Sorry to burst your bubble, but in 1990 you could by a home with 3.5 per cent down through FHA. It was designed to get people into homes at a higher rate– to mitigate risk– with less down payment. Also, agency loans (Freddie and Fannie) only required 5 per cent down. Also, VA loans required no downpayment. You did, however, pay insurance premiums and higher rates on agency and VA loans— see PMI and MIP as well as tiered pricing due to LTV on any rate sheet.

    Source: 20 years of mortgage banking.

    The problem with Chris Dodd and other morons is they established a sense of entitlement with borrowers today. I should have that house because I should have that house– not because I am a worthy borrower. When FHA tanks– and it will– then you will revert back to 20 percent down like our parents had.

  17. Questioning says:

    August 16th, 2010 at 11:47 pm (#)

    What source did the Dodd comment come from? I've searched for the interview and can't find it. I want to read the entire comment, not just an excerpt.

  18. Jon S says:

    September 13th, 2010 at 11:44 am (#)

    According to Snopes, he did not make the comment. It was made up, although he did oppose the bill on the grounds that it would have disadvantaged home buyers with good credit and income but without the cash down payment.
    http://www.snopes.com/politics/satire/downpayment

  19. Guest says:

    September 17th, 2010 at 2:49 am (#)

    OK, so it was a rumor…but it certainly wasn’t far from the truth. The proposed amendment to raise the minimum down payment to 5% for federally assisted home loans did fail in the Wall Street Reform Bill. I wish that were an untrue rumor, too. The truth is still insane.

  20. Steve says:

    September 23rd, 2010 at 11:41 pm (#)

    tru. tru.

  21. ezrider says:

    October 5th, 2010 at 10:12 pm (#)

    Read congressional record yourself http://thomas.loc.gov/cgi-bin/query/R?r111:FLD001

  22. Jennifer says:

    July 1st, 2011 at 9:14 am (#)

    Chris Dodd did NOT make this comment: http://www.truthorfiction.com/rumors/d/dodd-rejec

  23. Jennifer says:

    July 1st, 2011 at 9:14 am (#)

    Chris Dodd did NOT make this comment: http://www.truthorfiction.com/rumors/d/dodd-rejec

  24. Jennifer says:

    July 1st, 2011 at 9:14 am (#)

    Chris Dodd did NOT make this comment: http://www.truthorfiction.com/rumors/d/dodd-rejec

  25. Jennifer says:

    July 1st, 2011 at 9:14 am (#)

    Chris Dodd did NOT make this comment: http://www.truthorfiction.com/rumors/d/dodd-rejec

  26. Jennifer says:

    July 1st, 2011 at 9:14 am (#)

    Chris Dodd did NOT make this comment: http://www.truthorfiction.com/rumors/d/dodd-rejec

  27. Jennifer says:

    July 1st, 2011 at 9:14 am (#)

    Chris Dodd did NOT make this comment: http://www.truthorfiction.com/rumors/d/dodd-rejec