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Mortgage Bailouts Are a Really Bad Idea
Exhibit A for why the Federal government should NOT bail out individuals defaulting on mortgages:
In the second quarter of 2007, 83 percent of Freddie Mac-owned loans that were refinanced resulted in new mortgages with loan amounts that were at least five percent higher than the original mortgage balances, according to Freddie Mac’s quarterly refinance review. The revised share for the first quarter of 2007 was also 83 percent.
People taking money out of their homes for purposes other than buying a home are not the victims of predatory lending that many Democrats are portraying them to be.
