In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.
Fannie Mae officials stress that the new mortgages will be extended to all potential borrowers who can qualify for a mortgage. But they add that the move is intended in part to increase the number of minority and low income home owners who tend to have worse credit ratings than non-Hispanic whites.
That's retarded, in the old school sense of "not fully developed."
We cannot subsidize the confused and less able by forcing the more sensible to cater to them. That's against natural selection and against common sense, which is that we should invest in our best, not those who are doomed to be an underclass by lack of natural ability, by confused lifestyles, and/or by addictions. This is who always make up the underclass: the dumb, the strung out, the neurotic, etc. Why is this? Because anyone with a modicum of intelligence + hard work can escape this situation. It is not rocket science.