One of the most articulate and intellectual bloggers in the homeowners rights movement is Deborah Goonan. A critically important recent column of hers is one that’ll be overlooked by most of us, the so-called Housing Opportunity Through Modernization Act. It would force the FHA to ease regulations on mortgage financing for those buying condominiums. On the surface it sounds like a great thing, lowering down payments, reducing the mandated number of owner-occupied units.
But beware! We don’t know what the exact timing is, but there’s a mortgage/credit bubble headed our way that will make 2008 look like a walk in the park. Not a single banking expert is predicting otherwise. All it takes is for one branch to break and the whole tree will fall. Many expect the troubled Deutsche Bank to be the first to fall. Others think the controversial Presidential election cycle could be the trigger.
Regardless of your political persuasion, this is a dangerous time for homeowners, investors and virtually anyone trying to support a family. This bill had unanimous support in the Congress and Senate. But read Deborah’s column. Make your friends read it. And hold your breath because things are going to get interesting.