Banks are no longer giving loans to low income families

[miketx]

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!!

Good, now tell us all how it's all white peoples fault.

 

[Manonthestreet]

We are at almost zero population growth in US. Baby Boomers are starting to shuffle off the scene and into nursing homes which they are building as fast as they can around here. Now you would expect that to start translating into housing surplus at some point which would seem to be compounded by fact they are still building single and multi family dwellings like there is a shortage. Now either they are importing ton more people than they are letting on or something bad this way comes.

 

[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.

And btw that's been going on for quite some time...didnt just start so we are well into the game.........part of the reason for their $15 minimum wage bleat....they know whats happening....

 

[Silhouette]

We are at almost zero population growth in US. Baby Boomers are starting to shuffle off the scene and into nursing homes which they are building as fast as they can around here. Now you would expect that to start translating into housing surplus at some point which would seem to be compounded by fact they are still building single and multi family dwellings like there is a shortage. Now either they are importing ton more people than they are letting on or something bad this way comes.

Nothing like empty homes with no people being given loans to occupy them to spur a sick economy...

 

[Moonglow]

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!!

They have to go by rules set during Oblama era reforms.

 

[Moonglow]

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.
.

Compound interest is the most powerful force in the universe-Einstein..

 

[Manonthestreet]

We are at almost zero population growth in US. Baby Boomers are starting to shuffle off the scene and into nursing homes which they are building as fast as they can around here. Now you would expect that to start translating into housing surplus at some point which would seem to be compounded by fact they are still building single and multi family dwellings like there is a shortage. Now either they are importing ton more people than they are letting on or something bad this way comes.

We are at almost zero population growth in US. Baby Boomers are starting to shuffle off the scene and into nursing homes which they are building as fast as they can around here. Now you would expect that to start translating into housing surplus at some point which would seem to be compounded by fact they are still building single and multi family dwellings like there is a shortage. Now either they are importing ton more people than they are letting on or something bad this way comes.

We are at almost zero population growth in US. Baby Boomers are starting to shuffle off the scene and into nursing homes which they are building as fast as they can around here. Now you would expect that to start translating into housing surplus at some point which would seem to be compounded by fact they are still building single and multi family dwellings like there is a shortage. Now either they are importing ton more people than they are letting on or something bad this way comes.

Nothing like empty homes with no people being given loans to occupy them to spur a sick economy...

Try stepping out of the gotcha game and address whats posted eh......

 

[Dont Taz Me Bro]

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!!

Would you loan money to someone who you don't think can repay it?

 

[Mac1958]

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.

The goal of a lender, or a business, or any business, in any country, is to maximize profit for its owners/shareholders. And up to the Meltdown, mortgage lenders and banks both did some pretty horrific shit and we all paid the price for it.

But I'm not going to criticize a lender now for creating and maintaining lending standards, as long as they hold everyone to the same standards. Every lender can create and maintain its own set of standards based on its own business strategy. And shit loans are bad things.

Had lenders been maintaining standards from 1998 to 2007, had they not been able to load the shit loans into CMO's and sell them with mystical, phony AAA ratings, if lenders had no motivation to aggressively go bottom-fishing, had standards been maintained on the credit default swaps that multiplied everything, we would not have had the Meltdown.

The Meltdown should have taught us that lowering standards is a recipe for disaster. It clearly did not.
.

 

[Skull Pilot]

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.

If his income, credit score and more importantly his debt to income ratio were deemed adequate and he had a sufficient down payment he would have got a loan.

It has nothing to do with politics and everything to do with not losing money

 

[Silhouette]

If his income, credit score and more importantly his debt to income ratio were deemed adequate and he had a sufficient down payment he would have got a loan.

It has nothing to do with politics and everything to do with not losing money

Keep telling yourself that and it'll all be fine. Mmm hmmm. I'm telling you the banks are freezing loans to any but people who have enough liquid assets to finance the loan themselves. You don't see that as problematic. You see the economy as independent fragments.

 

[georgephillip]

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!!

Finance is bleeding the global economy dry; there will be no improvement until the FIRE sector (finance, insurance, and real estate) are returned to their proper role of funding and supporting production instead of extracting wealth from producers and labor:

The Rise of Finance and the Fall of American Business - RAI with Rana Foroohar (1/6)

"In her 2016 book 'Makers and Takers: The Rise of Finance and the Fall of American Business,' Rana Foroohar describes how financialization is bleeding the global economy to make a handful of elite investors very, very rich while holding back innovation and productive investment in the real economy.

"She writes that the financial sector represents only 7 percent of the U.S. economy, but takes around 25 percent of all corporate profit while creating only 4 percent of all jobs.

"According to Ms. Foroohar, even companies associated, as associated with research development and creativity as Apple borrow to invest more in stock buybacks and acting like a financial institution than they do developing qualitative leaps in their products."

 

[ThunderKiss1965]

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!!

Do you want another crash because that's how the last one happened.

 

[Skull Pilot]

If his income, credit score and more importantly his debt to income ratio were deemed adequate and he had a sufficient down payment he would have got a loan.

It has nothing to do with politics and everything to do with not losing money

Keep telling yourself that and it'll all be fine. Mmm hmmm. I'm telling you the banks are freezing loans to any but people who have enough liquid assets to finance the loan themselves. You don't see that as problematic. You see the economy as independent fragments.

Funny how I had no trouble getting 2 construction loans in the past 3 years and I didn't have the liquid assets to cover the loans.
What I did have was a very high credit score, a very low debt to income ratio and the income to prove I could pay the loans off.

There is no sense in taking unnecessary risk when lending money.

 

[tigerred59]

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

High risk loans? 47% of workers in this country, thrive beautifully paying high rent to slum landlords such as the likes of Trump.....the guy that wrote off a billion dollars in real estate loss on year on his tax returns, the same guy that stiff's contractors and the same guy who had to borrow billions from Russians because US bankers turned him down.....if anybody is high risk, its your orange president.

 

[tigerred59]

If his income, credit score and more importantly his debt to income ratio were deemed adequate and he had a sufficient down payment he would have got a loan.

It has nothing to do with politics and everything to do with not losing money

Keep telling yourself that and it'll all be fine. Mmm hmmm. I'm telling you the banks are freezing loans to any but people who have enough liquid assets to finance the loan themselves. You don't see that as problematic. You see the economy as independent fragments.

Funny how I had no trouble getting 2 construction loans in the past 3 years and I didn't have the liquid assets to cover the loans.
What I did have was a very high credit score, a very low debt to income ratio and the income to prove I could pay the loans off.

There is no sense in taking unnecessary risk when lending money.

I could explain to you that being a WHITE MAN, kinda gets you through the door, but you wouldn't understand.

 

[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!!

Do you want another crash because that's how the last one happened.

Uh, PBS did a documentary and I can assure you, poor homeowners did not cause the crash, if you care to watch it....but you won't...bye felicia

 

[Fang]

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!!

So lenders aren't repeating the mistakes that caused the issues in 2008-2009? Wow. What a concept. This thread just proves which party was really at fault then. Let's loan money to people who can't pay it back. smh

 

[Silhouette]

Funny how I had no trouble getting 2 construction loans in the past 3 years and I didn't have the liquid assets to cover the loans.
What I did have was a very high credit score, a very low debt to income ratio and the income to prove I could pay the loans off.

There is no sense in taking unnecessary risk when lending money.

Good for you. You are a rarer and rarer bird these days. I saw many families go right from where you are to "not qualifying" because jobs disappeared along with the housing industry/sales. I'm sure the economy can still balance on the backs of the white rhino.

 

[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!!

Finance is bleeding the global economy dry; there will be no improvement until the FIRE sector (finance, insurance, and real estate) are returned to their proper role of funding and supporting production instead of extracting wealth from producers and labor:

The Rise of Finance and the Fall of American Business - RAI with Rana Foroohar (1/6)

"In her 2016 book 'Makers and Takers: The Rise of Finance and the Fall of American Business,' Rana Foroohar describes how financialization is bleeding the global economy to make a handful of elite investors very, very rich while holding back innovation and productive investment in the real economy.

"She writes that the financial sector represents only 7 percent of the U.S. economy, but takes around 25 percent of all corporate profit while creating only 4 percent of all jobs.

"According to Ms. Foroohar, even companies associated, as associated with research development and creativity as Apple borrow to invest more in stock buybacks and acting like a financial institution than they do developing qualitative leaps in their products."

The bail out banks and auto industry, both proprietors of bad deals, were saved by the very tax payers they now want to shit on. Both industries are now nothing but money hungry profit machines.