article wrote:
It is hard to blame CRA for the mortgage meltdown when CRA doesn't even apply to most of the loans that are behind it. As the University of Michigan's Michael Barr points out, half of sub-prime loans came from those mortgage companies beyond the reach of CRA. A further 25 to 30 percent came from bank subsidiaries and affiliates, which come under CRA to varying degrees but not as fully as banks themselves. (With affiliates, banks can choose whether to count the loans.) Perhaps one in four sub-prime loans were made by the institutions fully governed by CRA.
Most important, the lenders subject to CRA have engaged in less, not more, of the most dangerous lending. Janet Yellen, president of the San Francisco Federal Reserve, offers the killer statistic: Independent mortgage companies, which are not covered by CRA, made high-priced loans at more than twice the rate of the banks and thrifts.
Last edited by CameronPoe (2008-09-19 11:47:31)
If I built my own home it would look like a 2000 sq ft porta potty, props to your old man. I was introduced to financial investing early fortunately, when I was a teenager. My mom being a financial guru for Prudential is how I got turned on to investing. Ya know, not for nothing but I probably wouldn't be able to afford my own home either if I didn't play the market like I do. I make a little shy of 80 per year and my wife is a nurse so she does about the same with OT but after the mortgage is paid and the savings account is fed there isn't a whole lot left. If it werent for me hitting big in the market back in '02 we probably couldn't afford to buy our dream home we live in now. But I am convinced that in these tough times there is still money to be made and shame on you to folks who don't save and use the economy as an excuse. People are so fucking irresponsible with their money and they are to quick to blame their government for failing them when they cry poor but drive $40,000 SUV's. I'm 29 years old and I see people my age or in their 30's and 40's who have no assets, no property, no collateral, no savings and no fucking plan for their retirement. It makes me sick. They need to stop looking to others for solutions and look in the mirror at their own fiscal irresponsibility. That is 90% of why I am Republican. I want a small govt who will allow me to take my money and improve my quality of life on my terms. Social services do nothing for me, absolutely nothing. I pay my property taxes however, the only two services I probably use are the trash pick up and the roadways. My child is going to be in private school, we own our own cars so no need for trans (suburbs), I have more firearms than the police perhaps, etc. I just wish people would start taking care of themselves for once.CameronPoe wrote:
Wow what a retarded piece of legislation. People across the world are now paying for that legislation, put forward by the supposed bastion of free market economy. What is even more galling is that there were 31 years of government following it that never reversed the fucking thing. My dad would never have qualified for a mortgage - he had to build his house with his own money and his own two hands.
McCain
Federal Housing Enterprise Regulatory Reform Act of 2005Bill Summary"I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole"
1/26/2005--Introduced. Federal Housing Enterprise Regulatory Reform Act of 2005 - Amends the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 to establish: (1) in lieu of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development (HUD), an independent Federal Housing Enterprise Regulatory Agency which shall have authority over the Federal Home Loan Bank Finance Corporation, the Federal Home Loan Banks, the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac); and (2) the Federal Housing Enterprise Board. Sets forth operating, administrative, and regulatory provisions of the Agency, including provisions respecting: (1) assessment authority; (2) authority to limit nonmission-related assets; (3) minimum and critical capital levels; (4) risk-based capital test; (5) capital classifications and undercapitalized enterprises; (6) enforcement actions and penalties; (7) golden parachutes; and (8) reporting. Amends the Federal Home Loan Bank Act to establish the Federal Home Loan Bank Finance Corporation. Transfers the functions of the Office of Finance of the Federal Home Loan Banks to such Corporation. Excludes the Federal Home Loan Banks from certain securities reporting requirements. Abolishes the Federal Housing Finance Board.
Change.Obama
http://cbs2chicago.com/topstories/Barac … 22408.html
Let's have a hearing to see if predatory mortgage fraud disproportionately affects poor and black residents.
yes, i mentioned that in the ATG silence thread. ofc all i get is silence from the left. lulzlowing wrote:
http://en.wikipedia.org/wiki/Community_Reinvestment_Act
This is the reason for the economical crisis.
Thanks to govt. interference it bame law to offer loans to undeserving people...Guess which party pushed for this bullshit? Guess who going to pay for all of it now..
Last edited by CaptainSpaulding71 (2008-09-19 15:28:50)
Last edited by Burwhale the Avenger (2008-09-19 20:49:31)
great bookCaptainSpaulding71 wrote:
Lowing: read Dick Morris' book 'Fleeced'. i just finished it. it has a whole chapter covering the sub-prime mortgage stuff. other chapters related to foreign lobbyists and unions are interesting too. the book is not all clinton bashing either - he picks on mccain as well.
after reading it i got really ticked at both parties because of the blatant theivery and greed going on. what ever happened to integrity? Fortunately most if not all chapters have an 'action agenda' summary that tells you what can be done from the standpoint of an ordinary citizen. mostly it involves writing certain congressmen, etc. he even gives out their addresses and phone numbers! hahah
Ye fucker - how'd you manage to get All Ireland tickets!?IG-Calibre wrote:
"buy to let " rather than to live In is what caused the bubble here, giving people loans to buy more property on equity that they in fact didn't own in the first place inflating the market - in other words GREED! and hell rub it up them because now they are sitting in negative equity up to their eyeballs in debt and as of next year will have to also pay rates on empty properties to add insult to injury, fuck 'em..
He short-sold some Lehman Brothers stock.CameronPoe wrote:
Ye fucker - how'd you manage to get All Ireland tickets!?IG-Calibre wrote:
"buy to let " rather than to live In is what caused the bubble here, giving people loans to buy more property on equity that they in fact didn't own in the first place inflating the market - in other words GREED! and hell rub it up them because now they are sitting in negative equity up to their eyeballs in debt and as of next year will have to also pay rates on empty properties to add insult to injury, fuck 'em..
I was lucky enough in the local clubs lottery..CameronPoe wrote:
Ye fucker - how'd you manage to get All Ireland tickets!?IG-Calibre wrote:
"buy to let " rather than to live In is what caused the bubble here, giving people loans to buy more property on equity that they in fact didn't own in the first place inflating the market - in other words GREED! and hell rub it up them because now they are sitting in negative equity up to their eyeballs in debt and as of next year will have to also pay rates on empty properties to add insult to injury, fuck 'em..
No it's not.lowing wrote:
http://en.wikipedia.org/wiki/Community_Reinvestment_Act
This is the reason for the economical crisis.
Thanks to govt. interference it bame law to offer loans to undeserving people...Guess which party pushed for this bullshit? Guess who going to pay for all of it now..
Last edited by KEN-JENNINGS (2008-09-20 12:25:12)
Last edited by CaptainSpaulding71 (2008-09-21 07:48:52)
You can "borrow" from your 401k for certain items, like buying your first house or if you have come down with an illness which requires some funds in the meantime, all done without incurring a tax hit. It might be a good idea to add mortgage payments to this, but again it may not.CaptainSpaulding71 wrote:
Was watching the news a few days ago and this guy Dennis Prager came up with an interesting concept of allowing people to withdraw from their 401k early (tax free) to pay for their homes and that this might be used to avoid a mortgage bailout. personally i always thought of doing this since i could reduce my mortgage considerably using this tactic and i'm still relatively young (37) so i have time to rebuild retirement through another 401k. i have other investments besides so i'm not too worried there.
on the other hand, this might have repurcussions of mass people withdrawing all that money from mutual fund accounts. and of course how many people who are barely getting by actually have retirement savings to withdraw?
still i think it would be neat to explore
Bullshit...lowing wrote:
http://en.wikipedia.org/wiki/Community_Reinvestment_Act
This is the reason for the economical crisis.
Thanks to govt. interference it bame law to offer loans to undeserving people...Guess which party pushed for this bullshit? Guess who going to pay for all of it now..
I've worked on projects that were almost entirely CRA funded, in an attempt to provide affordable housing and help improve property values - in the targeted area (City/redevelopment district). A majority of these (low priced) homes were not the ones that went bust in the bubble.There has been a tendency to conflate the current problems in the subprime market with CRA-motivated lending, or with lending to low-income families in general. I believe it is very important to make a distinction between the two. Most of the loans made by depository institutions examined under the CRA have not been higher-priced loans, and studies have shown that the CRA has increased the volume of responsible lending to low- and moderate-income households.
Robert Gordon has pointed out that approximately half of the loans were made by independent mortgage companies which were not regulated by CRA at all, and thus had no government obligation to offer credit to minorities.
Ellen Seidman, the former director of the US Office of Thrift Supervision,[2] argues that the CRA did not have an effect on the United States housing bubble. She observes that CRA banks were particularly warned to make responsible investments, citing a speech by herself as an example. She notes that if unregulated independent mortgage companies do make subprime loans, affiliated CRA banks should not be able to count them for CRA purposes, although she does not indicate whether this practice currently occurs.
An analysis by attorneys Traiger and Hinckley concluded that CRA banks were less likely to sell risky mortgages onto the secondary market, and likely mitigated the effect of subprime crisis.
...far fewer applicants are denied credit—rather, they are offered credit at higher prices intended to reflect the greater risk posed by these loans.
Home purchase and refinance lending has the largest origination volume by far (of which about 10 percent is CRA-related).
Perhaps the most significant factor driving the current rise in delinquency and foreclosures is declining house values.
Even though this must be sarcasm, I am sorry you need to identify it as such. It's rather hard to tell the difference from other posters who actually believe bullshit like this.Reciprocity wrote:
So has anything legally changed since these banks were "legally obligated" to give homeless minorities loans? You know, since they seem to have no legal choice but to give junkies and illegal immigrants $300k mortgages, this must still be a problem?
Last edited by topal63 (2008-09-24 13:19:45)