US Leaves Gold Standard to increase tax base

When the Government developed Fannie Mae aka FHA they were intended to be one of the first  government stimulus programs designed to increase home ownership in America and stimulate the economy by guaranteeing loans for the loan originators after they were as long as they were written to Fannie Mae guidelines the originators would be insured against default on a whole sale level. This was the beginning of what we know today as our current mortgage market. Prior to FHA the lending industry didn’t have standard operating procedures or regulations so a large portion of it had an unsavory reputation and they were not commonly used by anyone other than the affluent as loans were a minimum of 50% down and sometimes 80% down payment required with a short duration not usually more than five years. This is part of what propelled the United States out of the great depression. It involved leaving the gold standard allowing for inflation of United Sates currency. Leaving the gold standard for our currency allowed for the government to create more money and for the wealth to be funneled from the top to the bottom of the wealth classes through investment in real estate. Before that most people bought their houses in cash or had almost all the money in cash which obviously restricts who and how many people can buy a house even though everyone needs a place to live. The first large companies to lend money for mortgages were not banks they were insurance companies and they didn’t loan 80% to people they loaned maximum 20% to people and were notorious for making most of their fortunes from ruthlessly repossessing entire houses from those 20% loans not being paid back on their terms until Fannie Mae stepped in banks considered it too risky to give home mortgages they had only loaned on farms and building projects as there bread and butter.

Kris Kellar Coldwell Banker
18801 E Mainstreet
Parker, CO 80134

Author: Kris Kellar Coldwell Banker

I have always loved houses I first got my real estate license in 2006. I love being a Buying Agent and a Selling Agent equally. My favorite part of the buying process is crunching the numbers and it is personally satisfying when you can find your customers home buying criteria in the real estate market. My favorite part of the house selling process is pointing out the benefits and the beauty that you sometimes forget because you have them every day and forget that someone else is looking for what you have. I try not to make you fall in love with your house all over again since you are leaving but it is easy to point out why the next owner is going to fall in love with your home the same way you did. Kris Kellar Coldwell Banker 18801 E Mainstreet Parker, CO 80134 303-250-7841

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