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.
Conservatives have been trying to push the “mortgage crisis was the fault of blacks and Hispanics” ever since 2008. It’s a big ass lie and they know it. They’re just LOATHE to indict their rich banking buddies...most of whom are white.
The other big lie is “the banks were forced to give blacks and Hispanics home loans by the government because of the CRA.” Thats also a conservative lie and an attempt to smear minorities. Nevermind how inventive the banks got in some of their loan products. They weren’t forced...they LOVED making those loans. And a helluva lot of people (mostly white again) made a fortune and even left the crisis as rich people.
And they wonder why African Americans hate the GOP. It’s crap like this.
This was nothing new. Banks targeted black single mother homeowners with sub prime loans that they could not afford and lost thier home. Banks a decade later now have to atone for their sins for being racist. Like hiring black male convicts, no more background checks on hiring minorities and so forth.
Also the tweet is very bias and most likely created by a Twitter sjw lefty. Housing laws passed by Reagan, Clinton and Bush Jr are all causes for what happened in 2008. Clinton caused harm by replacing glass stegale act.
He didn't complain about me... like you, I paid my mortgage.
Now the banks steering us towards subprime loans - that's where the complaint should be.
I do have a cousin and his wife in northern VA who purchased an expensive house without the income from their jobs to support that purchase. Some of the blame has to fall on them for making that purchase. They are no longer at that house.
Nonsense. He made this thread to crap all over African Americans, and you’re so badly wanting to be in these folk’s good graces that you’re doing everything you can to avoid seeing it.
The subprime mortgage crisis was NOT caused by African Americans, and if you’re willing to go along with the lie that it was, then I’ve gotta say that you’re one very strange black person.
Location: New Albany, Indiana (Greater Louisville)
11,974 posts, read 25,473,841 times
Reputation: 12187
Maybe increasing minority home ownership is worthwhile enough that it is worth the risk of a mortgage crisis? Rent vs own ratios by race are the main driver in the massive gap in net worth averaged out by race. Incomes gap is much smaller. 2008 recession was complex and caused by way more than a fairly small number of subprime mortgages given to a few people.
A nothing down loan shouldn’t exist. The government needs to stay out of the loan business. They caused the mess.
The first Zero Down mortgages were VA Loans, ultimately guaranteed by the Federal Government. Worked reasonably well for 60 years.
Lenders, over time, offered zero down loans to qualified buyers independent of the VA. Often times, a second mortgage for 10% of the purchasing price would piggyback on a first mortgage for 90% of the purchasing price. These too generally performed reasonably well, over time.
Zero Down Loans were often sought by high income earners, who have adequate net worth to pay cash. Instead, they prefer to put that money to better use in other investments.
Where things went sideways was when Zero Down mortgage terms were combined with other terms like stated income/ assets ( no verification) and adjustable rate terms.
There are no laws that prevented or will prevent lenders from combining terms.
Nobody forced the guy I know from D&T who retired a millionaire in his 30's to create phony junk investments and sell them as prime ones, or the ratings agencies to conspire. These were all mostly white guys who got very rich. Basically no one went to jail and fines were paltry compared to the money that was made.
And right wing white guys who gorge themselves on talk radio and Fox News will post a thread, almost without fail, every month about how minorities and liberals were solely responsible for the crash. Yes, there were Dems in the government who were part of the problem, but my goodness you guys with your partisan nonsense and go to of "blame the blacks". It's absurd.
Nope! Wrong again. Blame Carter. the Community Reinvestment Act created the crisis. That's because it pushed banks to lend more to poor neighborhoods. That was its mandate when it was created in 1977.
IIRC, that legislation said if the banks were taking deposits in low income neighborhoods, they also had to make loans in that same neighborhood. Nothing about it said the banks had to make loans to anybody who was unqualfied.
Nobody forced the guy I know from D&T who retired a millionaire in his 30's to create phony junk investments and sell them as prime ones, or the ratings agencies to conspire. These were all mostly white guys who got very rich. Basically no one went to jail and fines were paltry compared to the money that was made.
And right wing white guys who gorge themselves on talk radio and Fox News will post a thread, almost without fail, every month about how minorities and liberals were solely responsible for the crash. Yes, there were Dems in the government who were part of the problem, but my goodness you guys with your partisan nonsense and go to of "blame the blacks". It's absurd.
I’m glad that you see this garbage for what it is...racist.
Quote:
Originally Posted by middle-aged mom
The first Zero Down mortgages were VA Loans, ultimately guaranteed by the Federal Government. Worked reasonably well for 60 years.
Lenders, over time, offered zero down loans to qualified buyers independent of the VA. Often times, a second mortgage for 10% of the purchasing price would piggyback on a first mortgage for 90% of the purchasing price. These too generally performed reasonably well, over time.
Zero Down Loans were often sought by high income earners, who have adequate net worth to pay cash. Instead, they prefer to put that money to better use in other investments.
Where things went sideways was when Zero Down mortgage terms were combined with other terms like stated income/ assets ( no verification) and adjustable rate terms.
There are no laws that prevented or will prevent lenders from combining terms.
Bingo. My grandparents got one of those zero down mortgages in 1950 when my grandpa left the Navy on disability. They had no money for a down payment. Most Americans didn’t.
IIRC, that legislation said if the banks were taking deposits in low income neighborhoods, they also had to make loans in that same neighborhood. Nothing about it said the banks had to make loans to anybody who was unqualfied.
Correct. If the CRA was the cause, why didn’t it crash the banks until 2008 although it had been in existence for decades previously?
Maybe increasing minority home ownership is worthwhile enough that it is worth the risk of a mortgage crisis? Rent vs own ratios by race are the main driver in the massive gap in net worth averaged out by race. Incomes gap is much smaller. 2008 recession was complex and caused by way more than a fairly small number of subprime mortgages given to a few people.
The bubble had nothing to do with putting minority owners into homes. As the bubble inflated, a majority of new purchase loans were subprime. Then there were the tens of millions of people who sucked the equity out of their homes often times to live beyond their means.
Example: Family buys home for $300,000 in 1995 with a $40,000 down payment. By 2005, the value of the home had doubled. Owner owes about $250,000 on the property worth $600,000- $350,000 in home equity.
He withdraws the equity and buys a vacation home, new furnishings , a few cars, renovates kitchens and baths. Life is good, so long as he can cover the monthly nut.
What happens if he loses his job or business? What happens if, for whatever reason, he wants or needs to sell and realizes he owes substantially more than the net proceeds of the sale? No way is he going to use the $3 million he has in his 401k. Oops. The value of his 401k is half of what it was at one time because the stock market took a nose dive.
Like most folk, the first thing he does is blame throw.
Fortunately, most people did not lose their jobs or businesses during the Grest Recession. Most people remained in their homes. While it was a nasty recession, it was nothing like the Great Depression where half of all homes entered into foreclosure, and did so despite having to put 50% down.
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.
