I know exactly what happened in the real estate market as I was a full time realtor from 2002 thru 2010. Yes it was under Clinton that the law was changed in the late 90's to help low income families buy a home. But of course what happened the republicans took advantage of that with deregulation ideology and took total advantage of something that was meant to help poor people reach the American Dream of being home owner and just took it to the next level for their own greedy purposes to make a buck. And I did see the movie!!! The law was not changed so that hack mortgage brokers can prey on strippers that all of a sudden think they are house flippers/real estate gurus. Back in that time the banks were so greedy and so taking advantage of the deregulation policies that they refinanced my HELOC limit to an additional $150k over the freakin phone!! No docs required. No appraisal issued. They asked me a questions what I thought my house was worth. I repeat that: they ask ME what my house was worth and I told them a random figure so I could get that increase. They put me on hold for 10 minutes and then when they came back, they said ok and I was approved. That simple. You have absolutely no idea how much fraud was going on back then. I buddy of mine was a mortgage broker and he would write his niece we was 7 years old as a tenant of an condo when someone was looking to buy a investment unit. No income verification, no job checks, no checking on where down payment money came from, 110% financing with Absolutely no docs needed other than a Fico score. Lenders approving $800,000 to families making $100k HH income KNOWING they couldn't afford it!!
Sorry but that is not what the law was written for and the greedy banks and republicans who where asleep at the wheel and could care less what Wall Street was doing with these sub prime loans could cRe less that the common man was getting ripped off!! As long as Goldman Sachs managers made there quarterly bonuses is what counted.
Try getting a loan now!! You have to provide so many documents that if you can't afford a home, you won't get approved. And thatbisbhow it should be!!! Gov't is in place to protect the people from greedy mutha ****ers like Trump who just a few years ago suckered the middle class again with "Trump University".
So please don't tell me about the real estate market. I not only worked in it, I bought a home in 1999 (after the Clinton law was changed) where I had to show proof of funds and income verification and employer letter). I bought another house in 2004 where I didn't have to show anything other than my ID and FICO score and mortgage broker just wrote in my HH income (no one checked). I bought another house in 2007 for much more than I could afford and without had test selling my previous house and the bank didn't cAre. They approved me anyways on something that I should have never been approved for. I did not have to go foreclosure or short sale route but I lost a tone of equity. I then bought my current house in 2012 and the amount of docs I had to show (3 years tax returns, check stubs, letter from employer, etc, etc) was incredible. But guess what?? It is to ensure that the real estate market does not collapse like it did back then with greedy assholes like Trump and Wall Street A-Holes who had no freakin clue what consequences would come from their greed.