The Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development, has recently adopted new guidelines widening the scope of condo purchases eligible for lower down payment loans insured by the government. While that could lead to more members of certain social groups buying a first home, critics fear a new subprime mortgage crisis could be in the making, given the current state of the residential property market.
Also read: Passing the Burden of Negative Rates to Bank Clients Opens Door for Cryptocurrencies
Another Trump Card Pulled Out
Upcoming elections have a strong influence over politicians which makes ‘end justifies the means’ decisions irresistible. President Trump’s second term is at stake in 2020 and that has already led to increased pressure from the White House on the Fed to further lower interest rates. With almost no inflation, the United States is “needlessly being forced to pay a MUCH higher interest rate than other countries only because of a very…