Edward J. Pinto is a resident fellow at the American Enterprise Institute (AEI), where he specializes in housing finance and the effect of government housing policies on mortgages, foreclosures, and the availability of affordable housing for working-class families. He is currently researching policy options for rebuilding the US housing finance sector and writes AEI’s monthly FHA Watch.
At a Capitol Hill luncheon event, Westchester County Executive, Robert Astorino, will present his first-hand experience with HUD's demands to sue localities over common zoning regulations in an effort to dismantle local zoning as it is known today.
The FHA’s mortgage insurance practices qualify as predatory under the definition set out by the FDIC inspector general. The reasons for this qualification include overcharging of lower-risk borrowers, the FHA's counting on borrowers' lack of understanding of FHA insurance, and the FHA offering abusive loan insurance terms to high-risk borrowers.
Editor’s Note: In a recent “Eye on the Market” outlook, Michael Cembalest of JP Morgan cited the work of AEI Resident Scholar Ed Pinto as forming the foundation of the analyses used in “The Course of Empire”: a retrospective on the US housing crisis
The National Association of Realtors has been steadfast in its support of subprime loans and undeterred by the loans’ demonstrable harmful impact on working-class families and neighborhoods. But the safe operation of the US mortgage market over the long term depends on the preponderance of loans being prime—loans with a low risk of default under stress conditions.