The mortgage regulators are stretching the removal of mortgage qualifications to the limit in an effort to keep the housing party going. The Consumer Financial Protection Bureau (CPFB) is recommending the removal of the DTI as a factor in qualified mortgage underwriting. Ironically, tighter mortgage finance regulations were the purpose for the formation of the CPFB in the first place. Wash, rinse, repeat. I have no doubt the mortgage and housing market is headed for another catastrophe.
Note that Blackrock, one of the first companies to dive head first into the buy-to-rent market, recently dumped the rest of its shares in Invitation Homes – one of the large single family rental operators which Blackstone took public in 2017.
Phil Kennedy (Kennedy Financial) hosted Aaron Layman – one of the rare realtors willing to discuss the truth (Aaron Layman Properties), Jimmy Morrison – who produced “The Bubble,” an impressive film housing bubble/collapse – and me to discuss why the housing market will implode again – we also include a brief discussion of gold and silver and why the precious metals sector is going to a lot higher:
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