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rewind, you missed the part about suing banks for not issuing subprime loans, I told ya to go slow.
SUING BANKS FOR REDLINING my dear willowtree....FOR not offering or issuing loans to low income buyers in specific neighborhoods....WITHOUT even giving them a chance....they were blackballed.
i think where you have gone astray on your thinking is that you think that low income buyers are the same thing as bad credit or no credit buyers alla subprime buyers....as i have stated before, they are not the same....
fannie mae already got their money at 1% cheaper than the market to cover the risk of these low income buyers....
the financial institutions created these high risk loans, they used them at their own irresponsible and negligent risk.... business decision risks....for the immediate buck in hand and screwed their stockholders in the mean time, and us, who are having to bail them out with our money....!!!!
dumbass ostrich.
nice, but none of that had thing one to do with deregulationLet me see if I can make this easy for you.
There was a lot of money floating around the world, looking for a place to invest.
Wall Street came up with a solution. Mortgage backed securities. What these are, basically, is bundles of thousands of morgages, broken up into pieces and invested in by investors.
All was well for awhile until there were no more regular mortgages to invest in.
So someone dreamed up NINAs...no income, no asset loans that anyone that was breathing, and even some that weren't, could easily get.
NINAs became so popular and profitable for the lending institutions loaning them out that the lending institutions began offering them to everyone. If you actually qualified the old fashioned way for a $200,000 mortage, they'd try to talk you into getting an NINA for $500,000 (and often they did just that). Then people started getting home equity NINAs on top of their mortgages because they could and because they often had no other way to pay off their original debt.
Whoever rated these mortgage backed securities rated them based on the default rate of conventional loans. That was a really stupid and boneheaded thing to do, because it was like comparing apples to oranges.
And then, housing prices began to fall, and fall big time. People started defaulting, and the companies that bought these loans to resell them started being told by the big banks (who they were borrowing money from to buy the loans in the first place) no more money, pay us what you already owe us. But they couldn't, because they'd never used their own money to begin with, they'd only used borrowed money. So they started defaulting on their loans, too.
And here we are.
Except that once upon a time mortgages couldn't be sold in this manner.nice, but none of that had thing one to do with deregulation
thank you for blowing the big talking point for Obama out of the water
nice, but none of that had thing one to do with deregulation
thank you for blowing the big talking point for Obama out of the water
uh, they have for quite some timeExcept that once upon a time mortgages couldn't be sold in this manner.
what can you expect from an ostrich! she's trying hard though!
It would be good if you eased off on the personal slurs and stuck to the point. You invite people to deal with a complex point and when you get an answer, instead of dealing with it you seem to launch into an immediate personal attack. It doesn't take a great deal of mental effort to do that but it's bloody annoying. As are your repetitive remarks about "ostrich". It was funny once. Just once. Now it's not funny.
Feel free to explode now
PI,
redlining IS AGAINST THE LAW....it is discrimination.
NOT in this article you gave as a link, NOT in any ACT or law were banks required to service people with bad credit. this is not redlining....redlining is giving NO ONE in a specific area, a loan....without cause.
the banks created these slick loans themselves and were NEVER MANDATED by any law or act or federal agency to create them or use them in any proportion to their business or in any manner....
end of story.
ROFLMNAO... "Red Lining" is a PC term used to force banks to advance loans to people without the means to service the mortgage... All a bank had to do to be accussed of 'red lining' was to turn down a fair percentage of applicants within a given area and someone would accuse them of this nefarious "Red Lining."
Banks created the relevant loans in order to meet the demands of the ideological left, that they make loans to under-qualified applicants to purchase properties which they were not well positioned to service.
Janet Reno flat out told the mortgage industry that if they did not make loans to the poor people in those areas which were determined to be 'red lined' that she would prosecute their ass... as a means of taking away the Banks sound basis for NOT loaning those people money... that they would be stuck with large quantities of property that they could not sell and that such would cause them to inevitably fail... The ideological left established that Fanny and Freddy would guarantee these liabilities.
Banks are in the business of making money and they do that by charging fees for their services and interests on debt... Once the Feds guaranteed the low rent notes, it was only a function of providing a system by which the unqualified could qualify and it was at that point which the system began to fail... it had to fail; there was no other alternative BUT for it to fail... and such is the case with ALL leftist notions and this without exception.
So enough of the crap that "Banks and Mortgage Companies were greedy and decided to screw themselves by giving away money that they knew they could never get BACK!
It should be noted that a MORTGAGE REQUIRES THAT SOMEONE GETS PAID UPON THE SALE OF A PROPERTY... Lets say that the Mortgage is for a $200,000 home... Upon the sale the bank writes a CHECK GIVING SOMEONE T$200,000.00 . Now kids, the bank HAS GIVEN TWO HUNDRED GRAND OUT and will now begin to receive payments, of, lets call it $1500 a month; of which 99.9% is interests (the return on that $200,000 investment...) but THEY HAVE PAID OUT >100 times the amount... of that monthly installment.
Now how exactly does THAT equate to greed? It was the BANK that paid out the 100% of the principle OFF THE TOP in most of these loans. They are the ones that are exposed to ALL OF THE LIABILITY! Their money is GONE and to get it back a mortgagee has to perform consistantly on their mortgage obligation or they must repo the property and sell it... which comes at even MORE immediate out of pocket expense.
The incentive came in the form of the US Government's gaurantee and the agency that they assigned to support that obligation (Freddy and Fanny) FAILED.
The responsibility for this fiasco is 100% that of the ideological left; unless of course we are willin to take that to the next logical step wherein it is the fault of all of us, becausethose of us that knew better did not slap a coup on the Clinton Admin when it was clear that they were going to ruin this nation with their insipid "Progressive" economics.
Which I suppose is unavoidable... but perhaps we'll know next time; after the US governmet finally fails and the inevitable civil war rinses any scent of the ideological left from the continent.
you really are fucked in the head. good luck.
um, del supports McCain, last i knewNow friends, this is one of the people that is allowed to vote and will be voting for "CHANGE" this November.
They're incapable of forming a lucid argument; they 'feel' they know something, they just can't express it and despite this severe intellectual limitation they're allowed to decide what individual represents them in determining what policy the US government should execute... and THIS is precisely how we got to the point where 19 Muslims cost us the lives of 7000 citizens and a two trillion dollars and how the US mortgage market sits on the brink of collapse...
Again... next time, let's try to remember that just because someone is able to make their mark, that this doesn't mean its a great idea to let them decide who sits in government...
um, del supports McCain, last i knew
And your point here?
Look man, McCain and Hussein have about 2 degrees of seperation between them... the absolute BEST one can say about McCain is he is closer to fascism then Hussein's dedicated socialism... in either case the US government is going to EXPLODE over the next 4 years. This assumes it doesn't collapse well before that.
We're long past doing anything about this, about the only thing we can do now is do direct ourselves to be closer to where we'd like to be when we crash... My only hope is that the survivors will be sufficiently aware of what exactly happened that they'll know better than to ever allow anything approaching a leftists set foot on what grows on top of what was once the United States.
you're really fucked in the head.
i've set up a fund to purchase aluminum foil in your name for other victims like you.
i calculated that $4.00 should cover it (no pun intended)
good luck.
... Banks created the relevant loans in order to meet the demands of the ideological left, that they make loans to under-qualified applicants to purchase properties which they were not well positioned to service...
