How will the limits on SUBPRIME MORTGAGES affect Immigrant Los Angeles? (mortgage, refinance)

[Dingler]

The subprime and exotic mortgage industry is one of the reasons places like LA have gone down hill. Five Immigrant Families will poor income and FICO scores could move into a single family home previously owned by the Cleaver Family and then bring in more friends and family members and destroy the neighborhood.

Now that interest rates and defaults are rising and exotic mortgages are being phased out I expect many LA immigrants will be out in the street. Is this true?

[TrojanDLA]

False.

LOL where do you get your information? Your comments are pretty ignorant, but I'll address what I can.

Most of the victims suffering from the subprime meltdown are WHITEs living in Ohio, Michigan, Indiana, etc.

Immigrant families who move in together have a large cash resource and can pool their incomes in order to avoid losing their home. Although their FICO score may be low, their cash flow is very high so they can afford to pay for their homes.

Where did the Cleaver Family go? Well, they too took advantage of the generous subprime/ARM programs and moved uptown, only to lose their homes because they financed beyond their means. The Cleaver Family will be out of a home unless they already refinanced into a fixed rate prior to the credit crunch.

Now that interest rates and defaults are rising, I expect many NON-immigrants to be out in the streets because most of the people who took advantage of exotic mortgages were regular Joes born and raised in America but wishing they could own the American dream and stretched their finances.

True, immigrants also took out exotic loans, but they did not constitute over 50% of these loans. Go to a mortgage forum and ask people in the business how many Whites took out exotic loans. I suspect the breakdown is a reflection of the ratio of ethnicities living in that region.