FHA Bombshell?

Discussion in 'Current Events' started by eagleseven, Sep 5, 2009.

  1. eagleseven
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    eagleseven Quod Erat Demonstrandum

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    It seems the Federal Housing Administration is in critical condition...and is threatening to smite this recovery before it even starts. Can we afford to bailout this disaster-waiting-to-happen?

    Not good.

    See also:
    Loan Losses Spark Concern Over FHA - WSJ.com
    The Coming FHA Bail-Out | Cato @ Liberty


    On the other hand, the FHA bureaucracy says there is nothing to worry about:
    U.S. FHA says won't need congressional support | Markets | Markets News | Reuters
     
  2. ba1614
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    ba1614 Silver Member

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    [ame=http://www.youtube.com/watch?v=LFYYrQLro9c]YouTube - A Bailout Song[/ame]
     
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  3. KittenKoder
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    KittenKoder Senior Member

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    Just another government run flop.
     
  4. WillowTree
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    WillowTree Diamond Member

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    Shit's gonna hit the fan on Tuesday! :lol:
     
  5. RodISHI
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    RodISHI Gold Member

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    It was defunct a long time ago. No one was taking it serious and those that were, were crushed. It's time to cut the apron strings to the banks. Tell them sink or swim. If they cannot quit paying their multi-million dollar salaries without taxpayers bailing them out screw the whole system. Trash it and start over again.

    The Myth of the Rule of Law, by Catherine Austin Fitts, Nov 2001
     
  6. KittenKoder
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    KittenKoder Senior Member

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    So ... Rod, you are for letting people who lived beyond their means off the hook to?
     
  7. veritas
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    veritas OBKB

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    By definition, anyone that takes out a mortgage is living beyond their means, they assumed a debt. The government and business have a keen interest in furthering this cycle though. It keeps the machine moving and the churn stable and produces taxes and monthly income. The whole tax structure is built on borrowing and not saving. You get a tax break if you borrow and are penalized for saving. But the truth is, FHA loans are not the ones that were in high default, they have a purchase ceiling. It was the non-conforming loans that were rated high when they shouldn't have been. But a mortgage is a secured loan. The FHA can and does offer foreclosed homes for sale, as does the VA. Bear Stearns had no such corporeal collateral.
     
  8. RodISHI
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    RodISHI Gold Member

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    KK, it has not all been people living beyond their means. I am for courts not letting crooked bankers who alter documents to get these loans approved and through federal programs so they have guarantees going to jail. That is not the case. SBA and FHA have been had by crooked asshole bankers. I KNOW I AM ONE THAT STOOD THERE AND SCREAMED BLOODY MURDER WHEN THEY DID IT TO ME.

    I could have walked away and let SBA/the taxpayer pay for the bank's fraud. I did not. We were stripped, threatened and left to die a slow miserable financial death. NO ONE, I mean no one stopped them. When a bank can use creative accounting to ruin a valid business and then go to court and use their own sole created documents to completely finish off a little ole nobody like me and a nobody like Rod with the courts assisting and compounding that fraud, what do you think they are doing and have been doing on a daily basis for years?


    It is solely up to those banks to determine if a person is a viable risk. They have the authority to make unilateral decisions. They are supposed to follow guidelines, they do not. When a creditor fails the bank collects it's losses from the taxpayer. When the bank made a bad decision or if they altered docs to make that loan taxpayers foot the bill. "Standard banking practice" are the exact words used by the bank attorney at the Iowa Court of Appeals. It is standard banking practices to alter documents, overcharge accounts and then threaten someone if/when they refuse to sign off that they will not sue that bank, their employees and their CEO's. Fraud was detailed and exact in my filing, it was detailed in the banks documents and the bankers testimony, the courts tossed it and ignored fraud by the bank. That is the way it works and I do not agree with it in any manner whatsoever. LET THEM FAIL.

    Normally one would assume that a bank/bankers would be charged with fraud at the very least for altering documents. It is after all against the law. They have not been charging these guys in those banks for their erroneous papers, erroneous 1099's, charges and/or their erroneous balance sheets that were created so these creeps could and can strip off a nice yearly salary.

    If a bank loaned money on a home and altered documents what is that? If that bank overcharged an account without authorization that cost the account holder a weeks wages and then claimed that person "is a no good that simply won't pay their bills" what is that when a bank created that situation?

    It all happens just exactly like I stated. I know that from personal experience. I was retired before I hit forty. We did not just pay bills a bill at a time. I paid our bills in advance from anywhere to 6 months to a year. We owed no one a dime. I had borrowed money three times from a bank. Twice for a new truck or car, paid for them in less than two years. Once I had a contract that I could not cover the payroll the second month until I got paid, the banker gave me a line of credit for five grand. It was all paid for before the mine experience.

    Hold everyone responsible for their own actions but when you do you hold them all responsible bankers, lawyers, politicians, judges and the borrower included. If anyone of those commit fraud then the one who committed fraud loses. That is the way it is suppose to be. It was never the intentions of any sane person to pay crooks to steal from the public.
     
  9. garyd
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    garyd Senior Member

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    Veritas you are fairly close to correct for once. But still a 2% increase in the number of defaults -a number that had been stable for years - is not a good sign. And when people stop getting paid to buy cars and hoses what happens t those markets?
     
  10. veritas
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    veritas OBKB

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    It's not good but hardly surprising considering the rate of unemployment and the inflationary gap that occurred. But the houses remain and are tangible assets and they are at the price point of lower to average buyers so the market for their resale is much larger.
     

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