Large Scale Central

Dems Blocked Financial Reforms that McCain and GOP Proposed in 2

General Discussion
#21
Ralph Berg said:
It is pure bunk to blame the housing crisis on "poor" people who bought homes beyond their means. Many of the failed mortgages are from investors, flippers, speculators and slum lords. Typical Republican bull crap............blame the poor instead of the greedy SOB's responsible. Ralph
http://realestate.yahoo.com/promo/americas-surprising-foreclosure-hot-spots.html;_ylc=X3oDMTFwbjlvYmxlBF9TAzI3MTYxNDkEX3MDOTc2MjA0NjUEc2VjA2ZwLXRvZGF5BHNsawNmb3JlY2xvc2UtaG90c3BvdA

High income communities with high foreclosure rates. Certainly not “poor” people living beyond their means.
Ralph

#22

Ralph, you don’t have to be poor to live beyond your means.

#23
Ken Brunt said:
Ralph, you don't have to be poor to live beyond your means.
Very true. But the recent spin put on the mortgage crisis by some blames the government for forcing loans to poor and minority borrowers. I'm just pointing out this isn't the case. The banks lent money to investors to "gamble" in the real estate market. When values dropped below the amount owed, these investors bail out leaving the mortgage company holding the bag. Now, our President wants to bail out these banks and mortgage lenders to the tune of 700 billion. Rather than require lenders to negotiate interest rates and payments with borrowers, we are going to "buy out" their loses. Ralph
#24

What it puts the blame on is giving loans to people with bad credit or risky credit at best, with an ARM and when the interest started going up on the ARM they couldn’t afford the payments.

As for the spin about forcing loans, that’s exactly what CRA does, making banks prove they aren’t discriminating in their lending policies or risk penalties.

#25
Ken Brunt said:
What it puts the blame on is giving loans to people with bad credit or risky credit at best, with an ARM and when the interest started going up on the ARM they couldn't afford the payments.

As for the spin about forcing loans, that’s exactly what CRA does, making banks prove they aren’t discriminating in their lending policies or risk penalties.


If a bank holds an ARM that the borrower can’t refinance, why does the bank not negotiate a fixed rate the borrower can afford? This is what the government should be requiring the lenders to do, rather than pay the banks and cover their losses.
Ralph

#26

Ralph?

“If a bank holds an ARM that the borrower can’t refinance, why does the bank not negotiate a fixed rate the borrower can afford? This is what the government should be requiring the lenders to do, rather than pay the banks and cover their losses.”

Is that logic you are using when talking about why the govrnment does or doesn’t do something?

Oh, my.

#27
Ric Golding said:
Ralph?

“If a bank holds an ARM that the borrower can’t refinance, why does the bank not negotiate a fixed rate the borrower can afford? This is what the government should be requiring the lenders to do, rather than pay the banks and cover their losses.”

Is that logic you are using when talking about why the govrnment does or doesn’t do something?

Oh, my.


Ric,
I think the problem is that only a portion of these problem loans are owner occupied housing. I think a big portion of the problem loans are LLC’s walking away from properties whose values have fallen below what is owed.
The government has made it very hard for individuals to file bankruptcy. But it is still very easy for LLC’s and other corporations. They can just walk away when the liabilities grow larger than the assets.
Ralph

#28

In a logical world, the government wouldn’t be in the home loan business to begin with…:wink: