Housing emerges as economic bright spot after years in the dark | Page 3 | TigerDroppings.com

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BugAC
LSU Fan
Baton Rouge
Member since Oct 2007
19308 posts

re: Housing emerges as economic bright spot after years in the dark


quote:

You obviously haven't bought a house in the last 15 years.


I bought one in November






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BigBoyTiger
LSU Fan
Chicago
Member since Aug 2005
8758 posts

re: Housing emerges as economic bright spot after years in the dark


quote:

But they laid off the worst stuff


So they laid off of negative amortizations...big fricking deal.

You make it act like they didn't accept anything but conventional. They were a large part of the problem.

quote:

They were not governed by the same rules as banks per CRA. And in 2006, FNM / FRE only held 24% of the sub prime loans


I don't give a shite who they were governed by. 24% is 24% too much.






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BugAC
LSU Fan
Baton Rouge
Member since Oct 2007
19308 posts

re: Housing emerges as economic bright spot after years in the dark


Also, does anyone else notice the similarities between the fannie/feddie gov't lending to our current debt?

We keep on increasing debt, increasing debt, increasing debt, yet we make no steps to reduce the debt. And bull shite all you want, but the left doesn't want, or doesn't even give the public appearance that they believe spending is the problem. And right now, the left is in control of the government, and is bullying a weak GOP House, with a cheerleader media. It all leads to one thing. DEPRESSION.

Does no one see that a great depression is in the works if spending isn't reigned in, now?






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NukemVol
Tennessee Fan
Atlanta
Member since Jan 2010
1487 posts

re: Housing emerges as economic bright spot after years in the dark


quote:

More good news


The DC area was never really hit by the recession. Home values actually went up in the area. To use this as a basis is stupid. "All animals are equal, but some animals are more equal than others."






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WildTchoupitoulas
Member since Jan 2014
Member since Jan 2010
16186 posts

re: Housing emerges as economic bright spot after years in the dark


quote:

I bought one in November

I should have clarified before the housing downturn.

I bought two from 1998-2000 and in NEITHER case did the bank verify my employment, much less my income. Just a credit check. Both times the banks were trying to get me to borrow more than I felt I could afford, both times banks were pushing their ARMs. The government did NOT require banks to stop verifying employment/income. At one sale the lender told me I could borrow my downpayment at the act of sale - from the 'equity' I had in the difference between the sale price and the appraised value. I couldn't believe it. You'd be amazed at what a 810-820 credit rating will do to a lender.

Any time you start to see infomercials for buying houses with no money down, the market is going to bust.

You look like you just want to blame the government, but the banks were just as complicit.






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BigBoyTiger
LSU Fan
Chicago
Member since Aug 2005
8758 posts

re: Housing emerges as economic bright spot after years in the dark


quote:

Does no one see that a great depression is in the works if spending isn't reigned in, now?


Significant trouble is on the horizon.






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BigBoyTiger
LSU Fan
Chicago
Member since Aug 2005
8758 posts

re: Housing emerges as economic bright spot after years in the dark


quote:

You look like you just want to blame the government, but the banks were just as complicit.


Fair points. But you are a responsible adult who knows what he could afford.

I put more of the blame on individuals who are terrible at managing their own money and buying things they can't afford. It's really the issue, in my opinion.






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BugAC
LSU Fan
Baton Rouge
Member since Oct 2007
19308 posts

re: Housing emerges as economic bright spot after years in the dark


quote:

You look like you just want to blame the government, but the banks were just as complicit.


Reread my posts. I said the blame is 3-fold. Government, Banks, Irresponsible idiots.

I hold Gov't most responsible, and second goes to the banks, 3rd goes to the less than knowledgable lendees.

Gov't started this mess with Fannie/Freddie. Private banks followed suit due to a) Community Reinvestment Act b) subsequent community organizers protesting banks. These protests were a mark against a bank seeking expansion. c) banks trying to keep up with competition (fannie/freddie). However, private banks didn't have the safety net fannie/freddie did (at least not yet).
And then the idiots who did not catch any red flags, such as you did, when applying for a loan.



This post was edited on 1/29 at 9:42 am


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WildTchoupitoulas
Member since Jan 2014
Member since Jan 2010
16186 posts

re: Housing emerges as economic bright spot after years in the dark


quote:

I put more of the blame on individuals who are terrible at managing their own money and buying things they can't afford. It's really the issue, in my opinion.

I think it's more a case of individuals buying things they don't understand. I wasn't buying houses, I was buying financial instruments.

Borrowing against the equity for the down payment, with an equity loan under different terms/adjustable rates than the mortgage adjustable rates, combined with the lack of undestanding in the market forces that can affect your rate and the value of the home when you go to re-fi (which they alwys told the borrower, "Oh, you can just sell or re-fi before the rate jumps up" - yeah, right) and you have the recipe for a disaster. The borrowers were relying too much on the lender for their information and not getting a guarantee in writing that the lender would re-fi the house before the rates 'adjust'.

And while we're on the subject, if I don't have a real estate agent, and the seller does, how in the world can that agent claim that they represent the buyer and the seller? How can any agent working on commission from the sale represent MY interests as a buyer? Bastards.






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a want
LSU Fan
North America
Member since Oct 2010
10111 posts

re: Housing emerges as economic bright spot after years in the dark


quote:

I put more of the blame on individuals who are terrible at managing their own money and buying things they can't afford.


What culpability do the banks have?

If the banks aren't responsible for losses when their risks don't pay off, why should they reap the benefit when they do pay off?

Also: poor people getting loans subsidized by Fannie and Freddie is not the same thing as private Banks forgoing traditional credit checks in leiu of "self reporting", and the bigger institutions knowingly repackaging these questionable loans as AAA.

These are 2 different things. It's all bad (and I don't think anyone is defending Fannie/Freddie). But suggesting that the root of the financial collapse was the Community Reinvestment act is simply false.






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WildTchoupitoulas
Member since Jan 2014
Member since Jan 2010
16186 posts

re: Housing emerges as economic bright spot after years in the dark


quote:

What culpability do the banks have? If the banks aren't responsible for losses when their risks don't pay off, why should they reap the benefit when they do pay off? Also: poor people getting loans subsidized by Fannie and Freddie is not the same thing as private Banks forgoing traditional credit checks in leiu of "self reporting", and the bigger institutions knowingly repackaging these questionable loans as AAA. These are 2 different things. It's all bad (and I don't think anyone is defending Fannie/Freddie). But suggesting that the root of the financial collapse was the Community Reinvestment act is simply false.




(Is that appropriate for the PolyRant?)






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Taxing Authority
LSU Fan
Houston
Member since Feb 2010
23250 posts
 Online 

re: Housing emerges as economic bright spot after years in the dark


quote:

But the government NEVER incisiveness approving fraudulent loans.
I don't know what else to do but







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Taxing Authority
LSU Fan
Houston
Member since Feb 2010
23250 posts
 Online 

re: Housing emerges as economic bright spot after years in the dark


quote:

If the banks aren't responsible for losses when their risks don't pay off, why should they reap the benefit when they do pay off?
Ask the government. Since the TBTF banks were implicitly (and in fact, were explicitly) backstopped by the US government, why shouldn't they take unwarranted risks in underwriting?






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WildTchoupitoulas
Member since Jan 2014
Member since Jan 2010
16186 posts

re: Housing emerges as economic bright spot after years in the dark


quote:

Ask the government. Since the TBTF banks were implicitly (and in fact, were explicitly) backstopped by the US government, why shouldn't they take unwarranted risks in underwriting?

Did these banks know they would get bailed out before the bailout (beyond the FDIC/NCUA Fannie/Freddie assurances)?






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Poodlebrain
LSU Fan
Way Right of Rex
Member since Jan 2004
15617 posts

re: Housing emerges as economic bright spot after years in the dark


quote:

The number of homes for sale is at its lowest level since before the recession
Somehow I think this number is analogous to the number of unemployed not counting those no longer looking for work. It does not count a significant number of existing homes that will never be occupied, so they aren't counted as being for sale. There are places that are practically ghost towns in California.






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Taxing Authority
LSU Fan
Houston
Member since Feb 2010
23250 posts
 Online 

re: Housing emerges as economic bright spot after years in the dark


quote:

Did these banks know they would get bailed out before the bailout (beyond the FDIC/NCUA Fannie/Freddie assurances)?
Pretty much. The TBTF designation was known since the deregulation induced consolidation push.






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CITWTT
LSU Fan
baton rouge
Member since Sep 2005
31765 posts

re: Housing emerges as economic bright spot after years in the dark


So you see a pausity of homes for sale as a bright spot on the horizon. Does it enter the wanting brain that the owners are holding out of the markets for fear of losing the money they invested some years ago at the inflated prices of the housing boom that went BOOM in thier faces?





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Aristo
LSU Fan
Baton Rouge
Member since Jan 2007
2843 posts

re: Housing emerges as economic bright spot after years in the dark


quote:

that's what got us into the mess in the first place


Is that you Obama?






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Poodlebrain
LSU Fan
Way Right of Rex
Member since Jan 2004
15617 posts

re: Housing emerges as economic bright spot after years in the dark


quote:

Did government force financial institutions to repackage risky loans as AAA?
The financial institutes selling the packaged loans did not rate them AAA. That was done by independent ratings agencies. They are another group with culpability who got off without any accountability.

To summarize the whole mess, under pressure from the Community Reinvestment Act, banks did not perform the necessary due diligence to ensure they were making good loans. Government agencies, encouraged by Congress, bought loans from banks and bundled them for sale to investors without properly assessing the risks on individual loans within the bundles. The ratings agencies did not perform the necessary due diligence to accurately rate the bundled loans. When loan originators learned banks weren't performing the necessary due diligence when analyzing loan applications they assisted borrowers in making loan applications that would get approved taking advantage of the poor due diligence of the banks. Realtors would assist homebuyers in finding homes that were beyond their means knowing that loans could get approved.

So everyone took advantage of the circumstances. Realtors and loan originators got their money when the housing transactions occurred. Rating agencies and banks got their money when loans were sold to govenment agencies and rating agencies got paid when they rated the bundled packages of loans. But when borrowers couldn't pay notes they couldn't afford everything collapsed and those who still had skins in the game were left to take losses.






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ljhog
Arkansas Fan
Lake Jackson, Tx.
Member since Apr 2009
10210 posts

re: Housing emerges as economic bright spot after years in the dark


quote:

I'll ask you the question, too. Did government force financial institutions to repackage risky loans as AAA?


No. Government forced the granting of risky loans to start the process. The lenders then laid off the risk to greedy financial institutions and dumbass governments.






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