Loan Industry Fighting Rules on Mortgages »
Posted By Aidenag 1 year, 6 months ago in Business & FinanceThe mortgage industry, facing the prospect of tougher regulations for its central role in the housing crisis, has begun an intensive campaign to fight back.
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Aidenag
Photographer by day, news junkie by night. My main areas of interest are politics and the environment.
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DropkickaLib1 year, 6 months ago
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I used to work in the mortgage industry and there's a simple way to deal with bad quality loans. Make it mandatory for financial institutions that originate loans to service them for one year before they can sell them on the secondary market. The complete removal of loan origination from servicing has directly led to a lack of incentive to make loans based on traditional measures of creditworthiness. Make the originating lender bear some risk up front. Some poorer quality loans souldn't even be eligible for the secondary market.
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saintetienne1 year, 6 months ago
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"they caused a recession and still they don't want to be regulated."
WHO "caused" a recession??
Let's not make moronic, broad-stroke statements like that, marshx. It shows your lack of intelligence, and the idiots on Nutscape are extremely gullible.
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Charlson1 year, 6 months ago
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We know how this will play out during the time left to Bush. Limit the scope of the regulations or gut it of any real bite. Another toothless regulation propagated by those who are to be regulated and promoted by the Bush regime to pretend they are actually doing something about the mortgage crisis. When will the public rise in anger and disgust at how this administration has always helped their rich and powerful friends at the expense of the rest of us.
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saintetienne1 year, 6 months ago
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"When will the public rise in anger and disgust at how this administration has always helped their rich and powerful friends at the expense of the rest of us."
More to the point, when will the public finally accept personal responsibility and exercise restraint when it comes to signing their lives and their futures away on mortgages they KNEW they couldn't afford, all while running up their credit cards into the stratosphere?
But it's O.K. There's always hard-working, responsible taxpayer chumps like me around to pick up the bill. So go ahead. Take out another loan for home improvement. Buy those lead-poisoned toys from China so your little brats can keep up with the Jones' little brats. Keep your Starbucks habit and keep filling your SUV up with gas like there's no tomorrow. Why change your habits? We're all here to bail you out because personal responsibility is no longer in vogue, and Socialism is.
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joeblowe1 year, 6 months ago
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Here's what I think might help: Any person working for a bank or mortgage company found to be guilty of misleading, bamboozling, misdirecting, fine-print swindling or flummoxing any borrower, should be taken out and shot dead. Soon, the industry would be MUCH cleaner and this type of crap wouldn't be likely to happen. Not that the sudden extinction of their buddies in the industry would necessarily discourage anyone, mind you (I know that the greedy are incorrigible), but at least the guilty wouldn't be able to do it again (and again, and again and ...)
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saintetienne1 year, 6 months ago
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How about the borrower's educating themselves a little, taking some personal responsibility and showing some restraint?
Nah. That would mean we would have to rely on the intelligence, the responsibility and the good judgement of the general public. And God knows, THOSE qualities went the way of the dodo a long time ago.
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normallysilent1 year, 6 months ago
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I refinanced right before the market started going bad. I was a general contractor and had been dealing with this bank exclusively for a few years yet when I went in I was hit with this hard sell for every type of bad loan out there. They all knew me yet they still pushed this stuff. Knowing them I just laughed and said No. Eventually they showed me the fixed rate loan I had asked for. If they did this to someone they should have known,knew better. I have no pity what so ever for them getting bit in the A$$ for giving out these loans. There were the get rich quick jerks out there taking these loans thinking they would turn them around and dump the homes before the money came do, and those people do deserve to fall Hard but so do the lenders which were pushing these loans.
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saintetienne1 year, 6 months ago
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I agree, normallysilent. There should be no bailout of these lenders, and no bailout for the borrowers. PERIOD. Let them all take their hard knocks, and let the market be the ultimate decider. When government steps in, it mucks everything up, and ultimately it's going to be unfair for SOMEBODY - - namely the responsible taxpayer who wisely chose not to get suckered in to the real estate game, yet is ending up paying for everybody.
Thanks, government!
Thanks, lenders!
And most of all, THANKS buyers! Good job there, showing restraint, responsibility and good judgement. We'll all be paying for YOU for a long, long time!
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texangelwings1 year, 6 months ago
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If the mortgage lenders have to tighten the rules, there will be fewer loans! Fewer loans means less profits!
Some of the main rules for a mortgage loan for the past 30 years was;
The monthly payment for the house, adding all Long term debt monthly payments, not to exceed 39% of a person's gross monthly income! (Long term debt is considered a loan and credit cards, that will take more than a year to payoff.) A down payment of a substantial amount. This was according to a Realtor that I know!
Thanks Mark!
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nostalgia1 year, 6 months ago
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This is interesting
New York Times carried a front-page article chronicling the many warnings the former Federal Reserve chairman Greenspan received about aggressive subprime lenders luring unsuspecting customers into crazy mortgages they never could afford. ``Where was Washington?'' the newspaper asked. And where was Alan?
here was Edward Gramlich, the late Fed governor, who urged Greenspan in 2000 to have Fed examiners investigate the industry. Greenspan said no. Activists from a California housing group, the Greenlining Institute, met with Greenspan in 2004, urging him to press lenders for a voluntary code of conduct. Greenspan wasn't interested and didn't give a reason.
http://www.bloomberg.com/apps/news?pid=20601039...
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jumpmaster1 year, 6 months ago
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I knew a person who ultimately paid $1800 for a smog check and emissions repairs to her car. I had a similar car with the same symptoms and I paid about $100 which included new oxygen sensors.
The difference? I did my homework before I took my car into the smog check station. I educated myself about the process before I went in. I am a pretty good mechanic now but I didn't know jack at that time so it was all new to me. Nobody came to my house to teach me and there was no government watchdog to make sure I didn't get hosed. I educated myself to protect myself and this was just a car repair.
People spend more time researching their plasma tv purchase than they do studying real estate law or loan documents. What's up with that?
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