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A -- for claimants moneymaker on a day where we have a slight ray of hope for the housing industry April's new home sales beating analysts' estimates.
Rising seven point 3% since the prior month but the news may not be as good or bright as -- -- -- -- sales are still 23.
Point 1% lower than they were.
One year ago so will it take another government handout or some type of incentive to get the housing market on its feet again.
My next guess is not necessarily so it should help in some way but.
What is it -- -- -- as president and CEO Hovnanian Enterprises starting -- out of Fox Business exclusive on this day.
When -- didn't get a decent piece of news but.
You still feel the industry's kind of bumping along what would help.
Give it a spark plug moment.
Well one thing that would help is is something that the government shouldn't do and that's talk about mortgage interest deductibility whether they should do -- -- not eliminating Fannie and Freddie.
Those things worry.
But one of the things that's really changed his mortgage qualification.
Has gone from.
Very very lean to in two very very difficult just overly restrictive right.
About what you're talking about is that the back in the day 2000 to 2006 before the housing at at implosion.
There were liar loans galore of anybody could say I don't even work and they get a mortgage now -- it swung too far to the others.
It's gone too far and people with a minor blemish.
May not get a mortgage that are a consumer that's really otherwise -- but but how that's something the government can control when Wells Fargo initiates alone.
Don't they decide what the important metrics are that somebody has to have like -- -- of a down payment they're really the GSE Fannie Mae Freddie Mac FHA account for the overwhelming majority of loans today so anybody that originates ultimately looks to do.
Requirements of idiocy I thought FHA was asking for tiny amounts these days and I -- worry David was -- that.
Working for too lenient at this point that were not making sure people have enough.
Stake in it enough skin in that home there are two different issues one is down payment and -- FHA is a load down payment program right now.
Later -- that's something that could be addressed at this moment in the housing crisis it would be bad policy to address.
But what I'm discussing right now really as to who qualifications.
Such tests what about what should be easier to get a home well the credit scores gone.
-- requires about sixth when he.
Before the sub prime mess is somebody that had a 580 score with other extenuating circumstances.
Could call -- what do you think it should be.
I I think going back to the other low six hundreds makes sense going to 605 -- the in certain circumstances not everybody's credit worthy.
But there are people the kind of low scores that are credit worthy.
That's hurting the economy what else what else should be.
Relax well there is something that used to be called compensating factors today everything is black and white is completely formulaic if you don't Paul fly with the payments to income ratios there's very little flexibility.
So an example.
And in the past if you had tax free payments where they come from alimony child support or other areas.
You could -- those up to determine if you could qualify as mortgage income.
As part of income because income that -- figured on pre tax base and now forgetting you can now you can't do that but it's really silly because it really is an after tax payment what do you say to people.
Out there who say -- happening in his pushing us back to the evil ways that got us into trouble in the first place.
You know all what I'm suggesting is we go.
Not to the standards regardless of trouble to the standards that work for decades before that before it got to lean.
We have a system that worked for decades and we never had these foreclosure problems and delinquency problems this upfront mortgage originators fall.
There are these guys in San Diego at storefronts that we're just giving anybody.
You know there's a lot of finger pointing.
And -- wanna get into that at the moment but clearly there were mistakes made by many many what mistake will you never make again as -- back home opener.
Oh well you know we've got lulled into thinking this is gonna go long for ever.
And not focusing on things like what -- the qualification standards of the mortgage industry.
To do that today I think we're going to be much more careful on every front.
Buying land lever is looking at -- -- his qualifications.
Home prices affordability.
You name it were much more focused on department today.
Era of naming of the hanging in there.
Thank you so much for joining us that your loved to have you here for that perspective.
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