Banks are no longer giving loans to low income families

[tigerred59]

Banks are walking away from low-income home buyers.....leaving high interest, high yield, ie financial predators to pick up the slack... Non-banks have doubled down on volume — particularly through refinances — and now originate 56% of all home loans, according to the CFPB data.

So much for bailing out the banks, bailing out the auto industry which plans to stop making cars and place focus on gas guzzling trucks and SUV's....tax payers get fucked again!!

 

[Pete7469]

I don't expect lenders to make high risk loans.

 

[Dogmaphobe]

So, banks aren't handing out money to people who can't repay it?


What an outrage!

 

[Skull Pilot]

It's never a good idea to lend money to anyone who can't pay it back

 

[pismoe]

the world is upside down eh ??

 

[Silhouette]

Banks are walking away from low-income home buyers.....leaving high interest, high yield, ie financial predators to pick up the slack... Non-banks have doubled down on volume — particularly through refinances — and now originate 56% of all home loans, according to the CFPB data.

So much for bailing out the banks, bailing out the auto industry which plans to stop making cars and place focus on gas guzzling trucks and SUV's....tax payers get fucked again!!

Actually it's the middle class that gets fucked. Lower income first time home buyers are who elevate through ambition and hard work into the middle class. I'm not sure how many politicians have failed basic economics on both sides of the aisle; but you cannot continue to elevate the super rich with a shrinking middle class. The customers that buy their shit that made them rich .....vanish....and then guess what happens?

 

[Mac1958]

I don't expect lenders to make high risk loans.

So, banks aren't handing out money to people who can't repay it? What an outrage!

It's never a good idea to lend money to anyone who can't pay it back

Correct.
.

 

[Silhouette]

It's never a good idea to lend money to anyone who can't pay it back

Correct.
.

Even when the applicant's longtime credit history is solid as a rock? A lower but still adequate income still won't qualify? If that's the case, the US of A is fucked as a whole. This practice will spill out over all echelons of the financial spread. You gut the homebuyer's market, you gut the American economy in short order.

I see the masters of wisdom in politics are at it again.

By the way, this bank practice isn't new. It's been going on clandestinely since the crash in 2008, really picked up speed in 2009 as it became very clear to the banks what was happening to the American economy in general (it's their business to be on the cutting edge). During this period a friend worked at a bank and she said the unofficial policy was to categorically deny anyone but the already fiscally solvent (those who could essentially finance their own loan with savings & assets already in place). The policy was to find any excuse whatsoever as a means to deny the loan. Even if they had to fabricate one.

And, she said that this was the policy in place with all the bank chains in her area. Which means it's the policy and has been of all the banks in the US. So all that Obama shit you heard about "forcing the banks to cooperate" in loans was pure BS. In reality it wasn't happening. And the economy is still pure crap. We can only go on like this so much longer. Uncle Sam may have to step in and do its own lending program to struggling families with good credit until things improve.

The problem is that we have a real estate mogul in charge of the Whitehouse (well, in charge in name only). Naturally he'd want policy to nudge out competition in the housing market because if you can deny otherwise eligible people for loans, less homes sell. With less homes selling, prices start to plummet. A mogul like Trump knows to sit on that fence waiting like a vulture and then swoop in and take some sweet deals.

Methinks that's what the GOP's elite are up to: creating a carcass from whose bones they may strip the finest pieces of meat: the American economy be damned. If that's the case, they should all be hung by the neck until dead, because it's the equivalent of destroying the US from within, for personal gain. Which we identified back in the 1700s as high treason.

 

[Mac1958]

It's never a good idea to lend money to anyone who can't pay it back

Correct.

Even when the applicant's longtime credit history is solid as a rock? A lower but still adequate income still won't qualify? If that's the case, the US of A is fucked as a whole. This practice will spill out over all echelons of the financial spread. You gut the homebuyer's market, you gut the American economy in short order. I see the masters of wisdom in politics are at it again.

The primary elements of a loan are credit history and the ability to pay (which includes income amount, job stability and income to debt service ratio).

This isn't that complicated. It was the combination of subprime mortgages and a complete lack of regulation of the derivatives that supported/enabled them that were at the heart of the Meltdown in 2008.

We either maintain standards or we get what we deserve. Evidently we somehow haven't learned that yet.
.

 

[Silhouette]

The primary elements of a loan are credit history and the ability to pay (which includes income amount, job stability and income to debt service ratio).

.

You may be hard of reading so I'll repeat what I just said in my last post: EVEN WHEN THE INCOME MET THE MINIMUM STANDARD, OR JUST A BIT ABOVE, AND THE CREDIT HISTORY WAS STELLAR, THE APPLICANTS WERE/ARE SYSTEMATICALLY DENIED LOANS USING WHATEVER EXCUSE THE BANK CAN FIND; EVEN IF IT HAS TO BE FABRICATED. THIS WAS OBSERVED POLICY BY A BANK EMPLOYEE HANDLING LOANS AND IS STILL HAPPENING.

I personally know about a dozen people who were some of the most solid people financially in our area, who, for various reasons, needed some capital to start a project. But because their liquid assets couldn't match the amount asked for, they were denied. Banks are simply not lending on bound assets like real estate unless the amount of equity is just absurdly large. If it isn't, they won't lend. Even if it meets minimum standards from an applicant with good credit and adequate income. it just ain't happening.

This is problematic for an economy that depends on new home sales to try to recover. I'm sure you can see this but are trying to sidestep the issue; just like the banks are.....

 

[Mac1958]

The primary elements of a loan are credit history and the ability to pay (which includes income amount, job stability and income to debt service ratio).

.

You may be hard of reading so I'll repeat what I just said in my last post: EVEN WHEN THE INCOME MET THE MINIMUM STANDARD, OR JUST A BIT ABOVE, AND THE CREDIT HISTORY WAS STELLAR, THE APPLICANTS WERE/ARE SYSTEMATICALLY DENIED LOANS USING WHATEVER EXCUSE THE BANK CAN FIND; EVEN IF IT HAS TO BE FABRICATED. THIS WAS OBSERVED POLICY AND IS STILL HAPPENING.

You added to your post.

If a lender can be proven to use different standards for different people, that's illegal, and they have to be punished.

Otherwise, standards need to be maintained.
.

 

[Silhouette]

You added to your post.

If a lender can be proven to use different standards for different people, that's illegal, and they have to be punished.

Otherwise, standards need to be maintained.
.

No that's just the thing. They are applying the systematic denial to ALL applicants who make the minimum hurdles but don't have enough liquid assets to essentially finance themselves...making applying absurd or irrelevant.

 

[Manonthestreet]

housing market us a scam just like education.....

 

[Mac1958]

You added to your post.

If a lender can be proven to use different standards for different people, that's illegal, and they have to be punished.

Otherwise, standards need to be maintained.
.

No that's just the thing. They are applying the systematic denial to ALL applicants who make the minimum hurdles but don't have enough liquid assets to essentially finance themselves...making applying absurd or irrelevant.

If the standards are consistent, then it's up to the lender to decide what the standards are. This (like most everything else) exists on a continuum: The better your ability to pay, the better the chance of getting the loan and the lower the rate. A lender has to protect their financial interests.
.

 

[Silhouette]

housing market us a scam just like education.....

Right. Maybe if you were educated you'd know that "is" is spelled with an "i" instead of a "u"...

And you'd also know how interdependent housing and stable families in said housing is with other branches of the US economy.

 

[TroglocratsRdumb]

We don't want another Democrat Great Recession

 

[Defiant1]

The primary elements of a loan are credit history and the ability to pay (which includes income amount, job stability and income to debt service ratio).

.

You may be hard of reading so I'll repeat what I just said in my last post: EVEN WHEN THE INCOME MET THE MINIMUM STANDARD, OR JUST A BIT ABOVE, AND THE CREDIT HISTORY WAS STELLAR, THE APPLICANTS WERE/ARE SYSTEMATICALLY DENIED LOANS USING WHATEVER EXCUSE THE BANK CAN FIND; EVEN IF IT HAS TO BE FABRICATED. THIS WAS OBSERVED POLICY BY A BANK EMPLOYEE HANDLING LOANS AND IS STILL HAPPENING.

I personally know about a dozen people who were some of the most solid people financially in our area, who, for various reasons, needed some capital to start a project. But because their liquid assets couldn't match the amount asked for, they were denied. Banks are simply not lending on bound assets like real estate unless the amount of equity is just absurdly large. If it isn't, they won't lend. Even if it meets minimum standards from an applicant with good credit and adequate income. it just ain't happening.

This is problematic for an economy that depends on new home sales to try to recover. I'm sure you can see this but are trying to sidestep the issue; just like the banks are.....

Not being able to afford the down payment is a pretty good reason.

 

[Weatherman2020]

Can an OP get any dumber?

 

[Silhouette]

If the standards are consistent, then it's up to the lender to decide what the standards are. This (like most everything else) exists on a continuum: The better your ability to pay, the better the chance of getting the loan and the lower the rate. A lender has to protect their financial interests.
.

Well "better able" has a minimum set of standards. If you make the minimum or even above a bit, they are still denying loans. Are you suggesting that the home loan programs are more like auctions? I would tend to agree.

The economic crash of 2008 was brought on by banks doing dirty crap. So they were to be punished by being forced to loan to minimally-qualified applicants. But ruthless cutthroats 'bottom line" religion like you just cited means in actuality they were and are skirting the terms of their sentencing for malfeasance by simply not "doing the time" they are required to, in order build back up the economy they had a HUGE hand in destroying.

 

[Manonthestreet]

housing market us a scam just like education.....

Right. Maybe if you were educated you'd know that "is" is spelled with an "i" instead of a "u"...

And you'd also know how interdependent housing and stable families in said housing is with other branches of the US economy.

problem is .....if you educated yourself.....Prices are rising at twice the speed of wages....at some point the music will stop and the Pied Piper will clean up.