Many low-to-moderate income earners have talked themselves out of owning a home.
At least that's what bank officials said when they met in Orlando last week for the Mortgage Bankers Association convention. The officials say too many worthy candidates dismiss their chances of owning a home. How to lure Americans in this income bracket into the home market was a major issue for lender
"A foothold in real estate is a foothold," says Bank of America's Jackson. "Ownership has to start somewhere, and we need to let people know that it's OK to look around at the possibilities of owning rather than renting."
A foothold is not inherently a positive thing. Without a safety rope a foothold here ( on the left ) would be a very scary thing. For many, having an ARM and Interest Only loans are like climbing a mountain with an avalanche coming downhill. A foothold here is highly problematic.
The members of the Mortgage Bankers Association have done enough damage peddling their toxic loans to ill-informed or greedy homedebtors. They should stop trying to find new groups to lure with toxic mortgages and instead focus on raising lending standards.