Started in 1998 by Clinton. 50% of all foreclosures are Black families. Clinton wanted the poor to be able to own homes, so no down payments, ARM's started, loaned money on the whole home value, not 80 or 90%, etc. Good goal, but the poor have to learn how to budget before they can own a home. Bush allowed it to continue, although his administratiion warned congress to do something about it through some type of banking regulation 6 times, but it fell on death ears.
Side issue, my grandparents never had a mortgage, and never had a credit card, never owed anyone anything. They rented, worked in cotton mills, and saved, bought some land, built a home on the land one room at a time, used an outhouse until the 60's. I remember they started with one big room 18'x18', added an 8'x18' on the back, then added a 12'x18' on the front, then added two 10' rooms the 38' length on the side. Heated with a wood stove, which they cooked on. Used an out house until the 8'x18' was divided and part was made into a bathroom. Never owed a dime.
My parents, borrowed to buy a house, and cars, but always had at least one car paid for before buying another, but never used credit cards.
My generation went credit card crazy, now my kids are even worse with credit. I owe no credit cards, but have a mortgage. Vehicles are paid for.
