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Geeze Edward. Of course I know the data. My point was that though the government program was meant to target minorities, why not target those minorities that have good credit and not exploit those that don't. Of course I know that on average, minorities have lower credit scores. But again, the banks didn't care and went after the ones that didn't have good financial stability like a, well, predator. Probably because there weren't enough minorities with good credit to fill their fat pockets. No one told them to go after people with 520 credit scores and sell them ARMS that reset in 5 years on a $300,000 mortgage. The developers wanted to build, build, build, then unload as fast as possible. Tons of supply meant that they needed anybody and everybody to fill those homes. Perfect storm.
Adelphi folks like you need to start acknowledging some realities. The goal is to close the gap in home ownership. In order to do that you're going to have to make loans that are not traditional, to a riskier pool of borrowers. There is no way around that.
Adelphi folks like you need to start acknowledging some realities. The goal is to close the gap in home ownership. In order to do that you're going to have to make loans that are not traditional, to a riskier pool of borrowers. There is no way around that.
I do acknowledge the realities. But since when was the private banking sector so gung ho on a government program that benefited less than optimal consumers UNLESS THEY COULD CASH IN WITH NO REGARD FOR THE CONSEQUENCES? The banks knew what would happen. Hell they spend billions on computers that run algorithms night and day to try to squeeze out as much money as they can. They saw this coming a mile away which is why the set up the rules and the products to protect them after the crash. Why do you think they took out insurance on those secondary mortgage pools? They created products that rigged the system knowing full well that when it all came crumbling down, even with the good intentions of the program, they could be bailed out by the government. "Well you said you wanted us to help spread home ownership." I don't believe for a second that the banks didn't see this coming. As much as they lobby against congress to get what they want, they could have lobbied that what they were asked to do would come to bite the government later. But no, they saw a cash cow and decided to get while the gettin was good. The bank's number one motive has always been profit at the expense of public interest. Even when they say their intentions are to help the public.
I'm sure everyone will agree. Some of those people should have never gotten those loans. No documented asset and income loans? Come on. The banks knew they were garbage. They stamped their approval on them anyway and passed that garbage into the market.
So typical. Half of what you say is subjective and that is why you are on CD with your hillbilly ramblings as opposed to working in the financial field.
So, PG homes which are already half of what neighboring, comparable, area home prices are should be even lower? Every city and county in this area benefits from Washington, DC proper - even your aforementioned Arundel and Howard counties and definitely Northern VA.
The "black man", as you put it, was not the only one under the illusion that they were living the "American Dream". I've read countless stories on Money, Forbes and WSJ showing whites who CHOSE to walk away from their homes, without being behind on payments, and go and either have their parents buy them a home, or rent from a relative until the 3 year period is over. But, you won't comment on those folks who skipped out on their obligation to pay their debts, you'll praise them for being financially savvy and creating a work-around. However, if it was the "black man" who did this, you'd call him shiftless, irresponsible and typical.
And, Fairwood is not some dirty neighborhood that you think an entire county (Arundel or Howard) is cleaner than. It just goes to show your perception of blacks.
You and EdwardA are perfect for each other. A union forged by the anonymity of the Internet.
My point is if I have almost 600k to spend on a home , why spend it in PG when I could spend it in Crofton or Annapolis and get a comparable single family home? Crofton has at least built up Waugh Chapel shops and eateries. Annapolis has the Mall, the water and nice restaurants etc. within the area. If I live in Bowie and want something decent to eat I have to leave the city. Perhaps you view TGI Fridays and Texas Roadhouse as acceptable fine dining, I don't.
Add to the fact that I would most likely have to pay for private school for my kids if I live in PG vs sending to public schools in some other counties that far surpass the PG County school system and the answer is a no brainer.
I'm not the one who is narrow minded and chooses to highlight blacks. Many others on here and articles constantly boast about how PG County is the richest and most affluent county for African Americans. Yes, that's a positive. Now because some objectivity in regards to poor financial decisions are brought to the forefront about a county that is predominately African American, you want to get offended and say "hey, why aren't you guys talking about other races in PG County?"
I never said that Fairwood was dirty, neither did I give a poor perception on the living habits of African Americans.
You dont know anything about me, my race or where I live that's why your reply is comical. You sound like one of those PG County is just as good as other counties supporters however I guarantee you don't even spend your hard earned money in good ole PG, shop or dine in the County and you make the trip to Annapolis Mall to view a movie instead of Bowie or Magic Johnson Theaters. Hypocrite.
My point is if I have almost 600k to spend on a home , why spend it in PG when I could spend it in Crofton or Annapolis and get a comparable single family home? Crofton has at least built up Waugh Chapel shops and eateries. Annapolis has the Mall, the water and nice restaurants etc. within the area. If I live in Bowie and want something decent to eat I have to leave the city. Perhaps you view TGI Fridays and Texas Roadhouse as acceptable fine dining, I don't.
Add to the fact that I would most likely have to pay for private school for my kids if I live in PG vs sending to public schools in some other counties that far surpass the PG County school system and the answer is a no brainer.
I'm not the one who is narrow minded and chooses to highlight blacks. Many others on here and articles constantly boast about how PG County is the richest and most affluent county for African Americans. Yes, that's a positive. Now because some objectivity in regards to poor financial decisions are brought to the forefront about a county that is predominately African American, you want to get offended and say "hey, why aren't you guys talking about other races in PG County?"
I never said that Fairwood was dirty, neither did I give a poor perception on the living habits of African Americans.
You dont know anything about me, my race or where I live that's why your reply is comical. You sound like one of those PG County is just as good as other counties supporters however I guarantee you don't even spend your hard earned money in good ole PG, shop or dine in the County and you make the trip to Annapolis Mall to view a movie instead of Bowie or Magic Johnson Theaters. Hypocrite.
What are the upscale restaurants at the Waugh Chapel Shop? Please list them i'm dying to know lol. Especially compared to Bowie Town Center, what upscale eateries are located in Annapolis? Cheese Cake Factory? Bowie has tons of NON CHAIN restaurants which is why i'm assuming you have never heard of them. Even the so called Bethesda row has never impressed me at all...its Chain restaurant city and I dont consider any of the stores high end or upscale.
My jaw was dropped almost the entire time reading this. I can summarize this article in one word: Greed
This family had at least 3 times from my count where they should have simply sold the property and they kept holding on to it. It was obvious that they could not afford it, but what made it worse was their poor decision making. The amount of loans that they were taking out reminded me of me and NBP have been talking about with the line of just straight up stupidity/ignorance. At times I think the decision making was going one way or another on that line.
One thing that really stood out to me that at least in this case debunks the notion of predatory lending is their mortgage broker both times was a church member. Yes you can argue that those church members could have still have been predatory and taking advantage of their ignorance, but clearly this isn't a case of any type of racist agenda, this at worse, was two lenders who saw two naive and very ignorant individuals that they could take advantage of.
I could not believe they did not sell their townhouse. They received some awful advice. Their townhouse was valued almost $200k more than what they purchased it for. I didn't see the benefit of them refinancing if they were considering moving out, but they did it several times!!!!! Just like the housing counselor said, how were they able to get a loan that large when they already had a mortgage, especially considering how many times they refinanced???? Unbelievable.
Irresponsible lending might have been one of the many causes of the financial crisis -- but not just irresponsible lending to poor people, according to a new study.
"The large majority of mortgage dollars originated between 2002 and 2006 are obtained by middle- and high-income borrowers (not the poor)," the authors write. "In addition, borrowers in the middle and top of the distribution are the ones that contributed most significantly to the increase in mortgages in default after 2007." Rich people tend to take out larger mortgages, of course, but the fact is that the amount of money poor borrowers failed to pay back was just never that significant, as this chart from the paper shows.
Thanks. The study isn't contradicting what we are saying though. Obviously in the case of PG for example few people that bought during bubble were poor.
My jaw was dropped almost the entire time reading this. I can summarize this article in one word: Greed
Yup.
Quote:
This family had at least 3 times from my count where they should have simply sold the property and they kept holding on to it. It was obvious that they could not afford it, but what made it worse was their poor decision making. The amount of loans that they were taking out reminded me of me and NBP have been talking about with the line of just straight up stupidity/ignorance. At times I think the decision making was going one way or another on that line.
They should have walked away or file for bankruptcy. I don't understand holding on to these homes if you can't afford it. They make $100K they can rent a decent townhouse somewhere and call it a day. Who needs the stress?
Quote:
One thing that really stood out to me that at least in this case debunks the notion of predatory lending is their mortgage broker both times was a church member. Yes you can argue that those church members could have still have been predatory and taking advantage of their ignorance, but clearly this isn't a case of any type of racist agenda, this at worse, was two lenders who saw two naive and very ignorant individuals that they could take advantage of.
I'm Ghanaian American, I saw this play out in my family and beyond. Often times as with this couple the mortgage and real estate people were other Ghanaians.
Quote:
I could not believe they did not sell their townhouse. They received some awful advice. Their townhouse was valued almost $200k more than what they purchased it for. I didn't see the benefit of them refinancing if they were considering moving out, but they did it several times!!!!! Just like the housing counselor said, how were they able to get a loan that large when they already had a mortgage, especially considering how many times they refinanced???? Unbelievable.
It's crazy at least their house is nice and the kids have their own rooms.
Thanks. The study isn't contradicting what we are saying though. Obviously in the case of PG for example few people that bought during bubble were poor.
I didn't post it to show contradiction. It was just an interesting article that I ran into during my morning news reading time and thought it would add to the discussion.
What I will say is that the article points to those that should be better educated than the poor on financial matters since they are wealthy to rich (wealth as an indicator of educational attainment). We'll probably never know just how many of those knew what they were doing or were totally oblivious to the consequences. Did the rich take on greater risk simply because they were rich?
A more important question would be how many rich people walked away from their mortgage, because they can afford to, as opposed to the low to middle class who got foreclosed on and/or subsequently evicted because they were underwater and couldn't afford to relocate?
It appears in the four part series that though the people are solidly middle class, they weren't wealthy enough to walk away to cut their losses - the financial ability to locate when and where they choose as the rich do.
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