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Started By
Message
So, maybe we should force people to pay for stuff...
Posted on 9/29/08 at 1:15 pm
Posted on 9/29/08 at 1:15 pm
with their own money. People who now can't afford their payments will have to rent. Homes that have lost their value can sell to someone at their new value.
What is wrong with that?
What is wrong with that?
Posted on 9/29/08 at 1:16 pm to Chicken
bankers who have lost money will have to admit it...
Posted on 9/29/08 at 1:16 pm to Kolbysfan
Racist? This affected all races.
Posted on 9/29/08 at 1:17 pm to Chicken
How dare you!
That's pretty radical, man.
That's pretty radical, man.
Posted on 9/29/08 at 1:21 pm to Chicken
i try to buy things with cash. if i dont i pay off the credit card the next month. what made me mad about this hole bailout crap is if i was to go bellie up no one would be there bail me out. i would be forced to bail myself out.
the govt hands out to much damn money.
the govt hands out to much damn money.
Posted on 9/29/08 at 1:22 pm to Chicken
By STEVEN A. HOLMES
Published: September 30, 1999
In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.
Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.
In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates
-- anywhere from three to four percentage points higher than conventional loans.
''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''
Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.
''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''
Under Fannie Mae's pilot program, consumers who qualify can secure a mortgage with an interest rate one percentage point above that of a conventional, 30-year fixed rate mortgage of less than $240,000 -- a rate that currently averages about 7.76 per cent. If the borrower makes his or her monthly payments on time for two years, the one percentage point premium is dropped.
Fannie Mae, the nation's biggest underwriter of home mortgages, does not lend money directly to consumers. Instead, it purchases loans that banks make on what is called the secondary market. By expanding the type of loans that it will buy, Fannie Mae is hoping to spur banks to make more loans to people with less-than-stellar credit ratings.
Fannie Mae officials stress that the new mortgages will be extended to all potential borrowers who can qualify for a mortgage. But they add that the move is intended in part to increase the number of minority and low income home owners who tend to have worse credit ratings than non-Hispanic whites.
Home ownership has, in fact, exploded among minorities during the economic boom of the 1990's. The number of mortgages extended to Hispanic applicants jumped by 87.2 per cent from 1993 to 1998, according to Harvard University's Joint Center for Housing Studies. During that same period the number of African Americans who got mortgages to buy a home increased by 71.9 per cent and the number of Asian Americans by
46.3 per cent.
In contrast, the number of non-Hispanic whites who received loans for homes increased by 31.2 per cent.
Despite these gains, home ownership rates for minorities continue to lag behind non-Hispanic whites, in part because blacks and Hispanics in particular tend to have on average worse credit ratings.
In July, the Department of Housing and Urban Development proposed that by the year 2001, 50 percent of Fannie Mae's and Freddie Mac's portfolio be made up of loans to low and moderate-income borrowers. Last year, 44 percent of the loans Fannie Mae purchased were from these groups.
The change in policy also comes at the same time that HUD is investigating allegations of racial discrimination in the automated underwriting systems used by Fannie Mae and Freddie Mac to determine the credit-worthiness of credit applicants.
Published: September 30, 1999
In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.
Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.
In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates
-- anywhere from three to four percentage points higher than conventional loans.
''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''
Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.
''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''
Under Fannie Mae's pilot program, consumers who qualify can secure a mortgage with an interest rate one percentage point above that of a conventional, 30-year fixed rate mortgage of less than $240,000 -- a rate that currently averages about 7.76 per cent. If the borrower makes his or her monthly payments on time for two years, the one percentage point premium is dropped.
Fannie Mae, the nation's biggest underwriter of home mortgages, does not lend money directly to consumers. Instead, it purchases loans that banks make on what is called the secondary market. By expanding the type of loans that it will buy, Fannie Mae is hoping to spur banks to make more loans to people with less-than-stellar credit ratings.
Fannie Mae officials stress that the new mortgages will be extended to all potential borrowers who can qualify for a mortgage. But they add that the move is intended in part to increase the number of minority and low income home owners who tend to have worse credit ratings than non-Hispanic whites.
Home ownership has, in fact, exploded among minorities during the economic boom of the 1990's. The number of mortgages extended to Hispanic applicants jumped by 87.2 per cent from 1993 to 1998, according to Harvard University's Joint Center for Housing Studies. During that same period the number of African Americans who got mortgages to buy a home increased by 71.9 per cent and the number of Asian Americans by
46.3 per cent.
In contrast, the number of non-Hispanic whites who received loans for homes increased by 31.2 per cent.
Despite these gains, home ownership rates for minorities continue to lag behind non-Hispanic whites, in part because blacks and Hispanics in particular tend to have on average worse credit ratings.
In July, the Department of Housing and Urban Development proposed that by the year 2001, 50 percent of Fannie Mae's and Freddie Mac's portfolio be made up of loans to low and moderate-income borrowers. Last year, 44 percent of the loans Fannie Mae purchased were from these groups.
The change in policy also comes at the same time that HUD is investigating allegations of racial discrimination in the automated underwriting systems used by Fannie Mae and Freddie Mac to determine the credit-worthiness of credit applicants.
Posted on 9/29/08 at 1:51 pm to Chicken
quote:
with their own money. People who now can't afford their payments will have to rent. Homes that have lost their value can sell to someone at their new value. What is wrong with that?
Nothing wrong with that at all. People shouldn't have been living beyond their means in the first place.
Posted on 9/29/08 at 2:20 pm to silstang23
non-regulated, the investment market being non regulated makes it prime for greed which has gotten us to where we are today.
Posted on 9/29/08 at 2:26 pm to Chicken
ok, Rahm Emanuel just said that they want to reduce the principle owed by the home owner of those troubled mortgages...that somehow, if they are able to keep making payments, the taxpayer will get a return on the government's investment in these crappy assets.
What is the guarantee that the home owners will still be able to make payments? Are they going to audit every home owner stuck in this mess and figure out what they can afford?
This isn't just a bailout of Wall Street...it is also a bailout of people that shouldn't have been able to get a mortgage in the first place.
We are going to let people foreclose on the same property TWICE?
What is the guarantee that the home owners will still be able to make payments? Are they going to audit every home owner stuck in this mess and figure out what they can afford?
This isn't just a bailout of Wall Street...it is also a bailout of people that shouldn't have been able to get a mortgage in the first place.
We are going to let people foreclose on the same property TWICE?
Posted on 9/29/08 at 2:31 pm to MikeBRLA
Never seen that before. Funny stuff!!
Posted on 9/29/08 at 3:44 pm to silstang23
quote:It's the basic premise of any Dave Ramsey book. He gets bashed on this board - but if more people followed his advice, we certainly wouldn't be in the mess we're in right now.
Never seen that before. Funny stuff!!
I.E., everyone puts 20% down on a 15 year fixed loan, only gets a house where their monthly payment is 25% of monthly net income, pays cash for everything else...
Although I don't agree with everything he says it's hard to argue with the results.
Posted on 9/29/08 at 3:47 pm to Lou
quote:
pays cash for everything else...
if that happened, you'd probably have a whole bunch of jobless people out there as a result. Each side of that debate has its issues. Realistically, people carrying debt and carrying it responsibly is what it takes to make the world go around.
Posted on 9/29/08 at 8:42 pm to Bubba Bexley
quote:
Realistically, people carrying debt and carrying it responsibly is what it takes to make the world go around.
fail.
Posted on 9/29/08 at 8:49 pm to tigeralum06
IF the economy gets slammed how are the people that pay their mortgages, taxes and bills gonna pay now??????
I have worked hard my entire life. I pay my bills, taxes and have a retirement plan( for what that is worth now). I am the one getting F'd now.
I have worked hard my entire life. I pay my bills, taxes and have a retirement plan( for what that is worth now). I am the one getting F'd now.
Posted on 9/30/08 at 7:30 am to tigeralum06
quote:
Posted by Message
tigeralum06
fail.
If you're basing that on a national rather than individual level, you're a complete idiot.
Posted on 9/30/08 at 8:20 am to Chicken
Credit is absolutely essential for our economy. Without it, we're back in the stone age.
Posted on 9/30/08 at 8:33 am to Kolbysfan
quote:
Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.
quote:
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.
''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''
there it is in a nutshell
quote:
In July, the Department of Housing and Urban Development proposed that by the year 2001, 50 percent of Fannie Mae's and Freddie Mac's portfolio be made up of loans to low and moderate-income borrowers. Last year, 44 percent of the loans Fannie Mae purchased were from these groups.
The change in policy also comes at the same time that HUD is investigating allegations of racial discrimination in the automated underwriting systems used by Fannie Mae and Freddie Mac to determine the credit-worthiness of credit applicants.
and there is the reason the Dems fought to keep regulators at bay: vote buying
Posted on 9/30/08 at 8:38 am to Chicken
i think if we had done that 50 years ago it would be fine. the country grew too fast on credit and thats why we are where we are at now. in the toilet with all the credit that the usa owes.
why is growing bigger always the solution. i like small towns with small businesses.
why is growing bigger always the solution. i like small towns with small businesses.
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