Quote:
Originally Posted by aegsm76
jf - it was not the private market that did this. If that had happened and they could have justified it with market analysis, then so be it.
However, it was the government program that did this, to keep and promote segregation.
That is what I find reprehensible.
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Doesn't matter. When you are in the business of insuring mortgage loans (whether government or private) you can't take on the risk that your policy or lack of policy could systematically lead to all your properties losing value when defaults will inevitably happen. We are talking about a chance for a loss in the hundreds of billions that was easily mitigated. Personally in the 1930's I'd put the chance of that large loss happening as very high without that policy.
In other words, without that policy there would be no mortgage loan insurance program because it would have been seen as costing way to much.