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Today, House republicans proposed 8 new bills that would wind down Fannie Mae and Freddie Mac. One would put an end to the "affordable housing goals" for low-income and minority borrowers.
If the legislation becomes law, banks will only make mortgage loans people who can actually afford to repay them. Brace yourself for the shocked cries of RACISM!
Why would anyone cry racism? A HELL-OF-A-LOT of those loans went to white folks and everyone knows it!
Today, House republicans proposed 8 new bills that would wind down Fannie Mae and Freddie Mac. One would put an end to the "affordable housing goals" for low-income and minority borrowers.
If the legislation becomes law, banks will only make mortgage loans people who can actually afford to repay them. Brace yourself for the shocked cries of RACISM!
Today, House republicans proposed 8 new bills that would wind down Fannie Mae and Freddie Mac. One would put an end to the "affordable housing goals" for low-income and minority borrowers.
If the legislation becomes law, banks will only make mortgage loans people who can actually afford to repay them. Brace yourself for the shocked cries of RACISM!
I was in the mortgage industry for over 10 years. I finally got out in 2008 when I decided that it was just time to move on. Sub prime was not available even back then. It was and still is FNMA conforming or FHA only.
Today, House republicans proposed 8 new bills that would wind down Fannie Mae and Freddie Mac. One would put an end to the "affordable housing goals" for low-income and minority borrowers.
If the legislation becomes law, banks will only make mortgage loans people who can actually afford to repay them. Brace yourself for the shocked cries of RACISM!
How about a bill to stop from selling these toxic debts loans to investors?
I believe sub-prime were maybe 6-8% of the loans. Seems they are tackling the small problem, not the big one. THE BANKS!!!
In other words, we'll be doing business they way we did before the federal government decided to "improve" things. Sounds like a good idea to me.
Not even close. Back in those days the bank which made the loan had to hold the loan over it's entire life. That means they were very careful who they gave loans to because it was their money in the game. Even under the proposed bills originators/banks can still give loans to anyone they want (the more the better), securitize the loans, and then sell them to someone else. As long as the folks making the loan can off load all the risk on to other people then they will keep making as many risky loans as possible since they're not on the hook when things go bad.
Securitization of loans needs to stop but bankers don't like that because it would mean they couldn't push bad loans off on investors.
High debt to income ratio was always a factor in not getting a loan. It was my understanding the main scheme that changed was a large down payment was no longer required for the normally "unqualified". Maybe I'm wrong but I did not think the credit score level to qualify was lowered.
The borrower's overall credit rating or "FICO" score was adopted by Fannie and Freddie in the mid 90's as the primary basis for approving loans. Some of the criteria that previously would have disqualified a borrower were buried or obscured in the FICO score. After adopting the FICO score it was MUCH easier for previously unqualified borrowers to get a mortgage loan.
And all the toxic assets on the Freddie/Fannie books go where? You and I get to pay that bill.
Under the proposed legislation private investors not taxpayers will purchase the subprime loans. Even if the loans go bad the investors will lose, not the taxpayers.
Today, House republicans proposed 8 new bills that would wind down Fannie Mae and Freddie Mac. One would put an end to the "affordable housing goals" for low-income and minority borrowers.
If the legislation becomes law, banks will only make mortgage loans people who can actually afford to repay them. Brace yourself for the shocked cries of RACISM!
I find this statement racist. Why should it be assumed that blacks, Hispanics and Asians can't get a mortgage on their own merits?
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