Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
The government should get out of the mortgage business. Owning a home should not be part of the American Dream. It's no less American to rent a home than own one.
With the high rent prices it might make more sense for some people to buy. You have to live somewhere and hopefully it won't be in your car.
Now if the wealthiest country in the world wants a good portion of their population to be homeless that's another issue. Some of you might not care now because you have a roof and a job but when those people get caught in the homeless cycle (can't get a job because they have no home/can't get a home without a job) they will start invading your home, committing robberies in the stores you visit. Criminal gangs will multiply and every business owner will be required to pay a monthly fee to their local criminal gang. Since there will be less homeowners, the police will have to downsized and gangsters will get away with crime. Countries like this already exist and we are heading that way.
Welcome to the third world. I guarantee you, you won't enjoy it.
In 1999, liberals were bragging about extending affirmative action to the financial sector. Los Angeles Times reporter Ron Brownstein hailed the Clinton administration's affirmative action lending policies as one of the "hidden success stories" of the Clinton administration, saying that "black and Latino homeownership has surged to the highest level ever recorded."
Meanwhile, economists were screaming from the rooftops that the Democrats were forcing mortgage lenders to issue loans that would fail the moment the housing market slowed and deadbeat borrowers couldn't get out of their loans by selling their houses.
A decade later, the housing bubble burst and, as predicted, food-stamp-backed mortgages collapsed. Democrats set an affirmative action time-bomb and now it's gone off.
The government should get out of the mortgage business. Owning a home should not be part of the American Dream. It's no less American to rent a home than own one.
With the high rent prices it might make more sense for some people to buy. You have to live somewhere and hopefully it won't be in your car.
Now if the wealthiest country in the world wants a good portion of their population to be homeless that's another issue. Some of you might not care now because you have a roof and a job but when those people get caught in the homeless cycle (can't get a job because they have no home/can't get a home without a job) they will start invading your home, committing robberies in the stores you visit. Criminal gangs will multiply and every business owner will be required to pay a monthly fee to their local criminal gang. Since there will be less homeowners, the police will have to downsized and gangsters will get away with crime. Countries like this already exist and we are heading that way.
Welcome to the third world. I guarantee you, you won't enjoy it.
Yeah, well try clearing your credit with a bill that you should have never gotten or didn't even know about until you applied for a mortgage/credit.
That's not the issue here. That can happen at any credit level.
When you start excluding late payments - you are compromising the validity of the credit report, and will begin lending money to people who can't afford to pay it back.
NEWSFLASH - Bush administration tried repeatedly to sound the alarm that the current system was corrupt and unsustainable. Look it up. Research is your friend.
This was facilitated back in the 1977 during the Carter administration with the Community Reinvestment Act. It was between this repealing the Glass Stegall Act back in 1999.
The CRA focused on the banks putting social criteria over financial criteria. This new effort is about the credit industry putting social criteria over financial criteria.
This was facilitated back in the 1977 during the Carter administration with the Community Reinvestment Act. It was between this repealing the Glass Stegall Act back in 1999.
The CRA focused on the banks putting social criteria over financial criteria. This new effort is about the credit industry putting social criteria over financial criteria.
The Investment Banks that caused the crash were not covered by the CRA.
Greenspan, who is no fan of the CRA or the GSEs, summed it up pretty nicely in his congressional testimony. It was "explosive demand from investors" for subprime loans and not borrowers that led to the crisis.
- THE FINANCIAL CRISIS AND THE ROLE OF FEDERAL REGULATORS
What went wrong with global economic policies that had worked so effectively for nearly four decades? The breakdown has been most apparent in the securitization of home mortgages. The evidence strongly suggests that without the excess demand from securitizers, subprime mortgage originations, undeniably the original source of the crisis,would have been far smaller and defaults, accordingly, far fewer. But subprime mortgages, pooled and sold as securities, became subject to explosive demand from investors around the world. These mortgage-backed securities, being subprime, were originally offered at what appeared to be exceptionally high risk-adjusted market interest rates. But with the U.S. home prices still rising, delinquency and foreclosure rates were deceptively modest. Losses were minimal. To the most sophisticated investors in the world, they were wrongly viewed as a steal.The consequent surge in global demand for U.S. subprime securities by banks, hedge and pension funds, supported by unrealistically positive rating designations by credit agencies, was, in my judgment, the core of the problem. Demand became so aggressive that too many securitizers and lenders believed they were able to create and sell mortgage-backed securities so quickly, that they never put their shareholders' capital at risk, and, hence, did not have the incentive to evaluate the credit quality of what they were selling.Pressures on lenders to supply more paper collapsed subprime underwriting standards from 2005 forward. Uncritical acceptance of credit ratings by purchasers of these toxic assets has led to huge losses.
In the past, it was a flippant smart ass question, but right now, I'm dead serious:
Has this country gone fricken insane?!
Did we NOT just go through this crap?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
