Liar’s loans and the mortgage crisis. What do you think the fix should be?
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Comments (2)
Ray451
said:
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... But the Chinese are paying for all this. They are kidding themselves if they thing they'll get their money back. Its the price they have to pay to do business with us. |
LarryE
said:
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Owner A few years ago I was the manager of a mortgage company. I was amazed at how easy it was to get "stated" income or even "no income/no asset" loans. In other cases, if a person was willing to accept the high interest rates, high closing cost they could, unbelievably, qualify for mortage payments as high as 60% of their incomes. Many also accepted variable rate mortgage loans I knew were a disaster if rates went up. We also could qualify applicants just days out of, and in some cases, even still in bankruptcy! The greed of the lenders, the mortgage companies, and borrowers eventually disgusted me to the point of changing careers. The problem was what we were doing was condoned and even forced by congress thru Fannie Mae and Freddie Mac. We still haven't learned our lesson, at least at the congressional level. We were entitling individuals to homes and standards of living they did not deserve and, more importantly, could not afford. The mortgage bubble did not work, the home entitlement push did not work, and now our congress and administration, in their "new found wisdom", have shifted to bailouts and, possibly, the biggest fiasco of all time: ObamaCare. Where does it stop? It ends only with a total collapse of our economy. We have reached a very dangerous point in our democratic process: the point where the majority of voters now pay no taxes and live off the entitlements paid for by the minority. I fear will can never return our system to any sort of sanity. |
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