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The CRA had nothing to do with it.
Lenders did their due diligence when lending to people until Mortgage Backed Derivatives came along and they no longer had skin in the game and wanted to sell a house to anyone that could fog a mirror.
Then when Brooksley Born came along to put a stop their scam well before the financial crisis, 9 cockroach bankers piled into Summers office to put a stop to it. Then they ostracized her in the media in order to kill her off.
ANY NOT ONE DAM THING HAS CHANGED since then.
The Financial Terrorists are still in charge.
Fannie Mae was created to create a secondary market to increase liquidity...IN 1938!!!
First of all, while presidents signed those bills, they didnt write them, and those bills went through the congress and senate. Who voted for them? Who could modify them? It wasn't a president.
Many of these people belong in jail, and im offended that not enough of them are doing time.
As to your first comment, you are correct, except that you must be forgetting how Obama has made a ton of changes to the Obamacare even though he is not suppose to be able to.
As to your second comment, I agree and believe much of occurred was criminal.
I find it funny how people forget the key figures like Barney Frank who was warned multiple times and still said everything was fine. Then when it went south, the obnoxious hypocrite claimed he was not wrong, and blamed others. He was not the only one, but he certainly was one of the most vocal saying the ship was not sinking, all the while sitting in a lifeboat.
I don't get the mentality of people that cheer for their fellow citizens to be financially punished while giving a thumbs up to these mega-banks that were bailed out by the tax payers. I'm not saying people shouldn't pay back what they legally owe (if they can), but there aren't any real winners in this situation, other than those that took advantage of America to begin with.
I'm not cheering for either. But lenders are not gonna differentiate between Bob who lost his house due to a job loss and a brain tumor or Joe who just blew his equity on boats hookers and coke. As far as the lender is concerned they're both deadbeats.
People walked away. They thought that they were walking away and the bank would have to eat iit. How many people did some bs "strategic default" and now are being served a s**t sandwich they don't particularly want to eat. I'm not defending banks here. I think they should of had a sink or swim YOYO.
( found this out earlier today)
Look up recourse and NON recourse states
Purchase a property California, (which is a non-recourse state) and if you NEVER refinanced, lenders cannot come after you seeking to recoup their losses on a foreclosure. Those who live in recourse states, or California buyers who DID refinance, it's different. Lenders still have the right to pursue these borrowers unless they agreed to a short sale in California after July 15, 2011. And don't forget there are states that have a LONG time that the debt collectors have 25-60 years to collect between statute of limitations, exemptions, time to collect and extensions.
I'm amazed that my California home owner friends didn't have a clue when I mention non-recourse purchase money debt.
Seems everyone, including their Grandmothers was re-financing and in doing so tossed a very significant protection without even knowing it.
There was one exception... a well to do Lawyer that decided to walk on a home he bought before the bubble... he knew exactly what he was doing... bought his replacement home and then walked away and decided 800k he stiffed the bank was worth the credit hit.
The appraisers also played a large part, fraudulently over-stating the value of these properties. MERS was also fraudulent, and denied filing fees for property transfers, to local municpal and county governments.
The way I see it, devious homeowners were colluding with the appraisers. Also, why did local taxpayers/Govts/municipalities agree NOT to collect filing fees for property transfers? Sounds like more group collusion to me; was there a law that forbids MERS from paying?
Quote:
Originally Posted by KaraG
Affordability rates kept dropping in our area - clear down to the 8-11% range.
You would think making homes affordable would be a good thing. Too bad the spendthrift wannabes made their new homes instantly unaffordable by opting for more home then they needed/could afford.
Lastly, if the colluding squatters/strategic defaulters were punished in the beginning, the banks would also have been punished. Too bad the copious amounts of signed-on-the-dotted-line mortgage signatures dissuaded the USGovt from enforcing the law appropriately.
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Too bad the spendthrift wannabes made their new homes instantly unaffordable by opting for more home then they needed/could afford.
