Well looks like we're back to the Bush real estate bubble era as President he Barack Obama has decided that many of the rules he implemented in 2011 through the Dodd Frank financial overhaul were apparently a bad idea now that he can't get the economy moving fast enough.
Expect 2013 to include relaxing the rules for lenders as the real estate market continues to hit walls with higher interest rates and even tighter banks.
When you spend so many trillions of dollars and still haven't produced jobs or a thriving economy you only have one choice as the money starts to run out and that's to go back on what you first said needed to be fixed.
The government will end up relaxing how appraisers value property and what verification is actually needed to document the income for qualified buyers. This will inevitably start to create another bubble of buyers who are not qualified.
Everything they're doing today is working to keep buyers who are not financially ready to purchase a home out of the market and this is the way it should be. On the other hand if you have the actual job and down payment qualifications to buy a house the process is still pretty painless.
Pres. Obama will also continue to look at relaxing refinance rules as much as possible, but he's going to run into one thing which is going to make it impossible to refinance and that's going to be higher rates. Once rates get near 5% you're probably looking at a 90% reduction in refinances after so many years of low rates anybody who needed to refine has already done so.
The government needs to stop looking for ways to artificially stoke the economy as all they are doing is creating the biggest bubble ever recorded.