Do away with appraisals, 'blanket affordability' rules

A plan to jump-start housing

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The first article in this series argued that a rollback of Fannie/Freddie lending terms to where they were before the financial crisis was needed to prevent a second round of home-price declines. In addition to benefiting homeowners and the economy, this would reduce Fannie/Freddie losses on both old and new loans, which makes it a requirement of responsible conservatorship.

This article and the one that follows will discuss a few of the many specific changes in underwriting rules that are needed.