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Do you think very low interest rate over a long period of time and the lack good legislation had anything to do with the current housing crash?
Should the Bush Admin take any blame?
Should the Bush Admin take any blame?
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- Don't let negative things break you, instead let it be your strength, your reason for growth. Life is for living and I won't spend my life feeling cheated and downtrodden.
- Don't let negative things break you, instead let it be your strength, your reason for growth. Life is for living and I won't spend my life feeling cheated and downtrodden.
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Tiefin = fraud at the local levels. Even with the legislation in place it was the 'buyer' and the loan officers who colluded to take and to give respectively...loans that could not be serviced.Originally posted by Assasin View Post
...pure nonsense about borrowers not knowing what they were doing! Crap!
...when you make a dollar and your monthly expenses are too close to that dollar such that if you sneeze you are f!@#$%kkked... ..both borrower and loan officer knows you are entering into a crappy situation!
...there were and still are tons of those loans! Would be surprised if there is not another melt-down in the real estate market!!!!
The low interest rates by themselves was a GOD send. The lack of oversight argument is nonsense. It was human failings at the lowest of levels.
Loan Officers created credit reports, jobs and income...and borrowers read the docs and willingly became involved in the illegal dealings.
The numbers it would take to enforce the current regulations....forget the call for new or additional legislation...and the cost to manage that system would drive affordability of loans through the roof...it would kill the real estate market and profoundly affect associated and allied businesses.
Sass: Do you know that as it is in all financial industries the real oversight is internal? ...will that incestuous relationship of the loan officers, underwriters and compliance depts makes for....
Just think of and on the numbers, Sass?
A Maudib, Lazie an di res wid dem less dan di whole truth bout the need for FINSAC mek yuh ova-luk dat part of di mess dat caused FINSAC? Dem a 'poli-tricks-tah dem!"Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has." -
The people wouldn't be rushing to buy the house if the interest rate was 10% so it plays a role in getting them to the table and the brokers took advantage.
Karl do you read every line of the mortgage contract? I didn't and in most cases the regular man have to trust the banker and lawyers so if them corrupt then you get screw. You don't feel interest rate pay any role? as it makes one of the biggest difference on how much your monthly payment gonna be.- Don't let negative things break you, instead let it be your strength, your reason for growth. Life is for living and I won't spend my life feeling cheated and downtrodden.
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- Don't let negative things break you, instead let it be your strength, your reason for growth. Life is for living and I won't spend my life feeling cheated and downtrodden.
-
No!Originally posted by Assasin View Post
...interest rate plays a role how?
You either can afford the payments or you don't.
All buyers must answer one question - Can I afford to make the payment for the number of years I shall be in the house or until I fully satisfy the debt?
End of story!
btw - We have had past market meltdown when interest rates were in the 15% range."Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has."Comment
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Lower interest rate make people more likely to afford a mortgage. Am I wrong? I know when you selling you alway mention and give people the low interest rate, right?
What is the cost of finance for a house of 150,000 at 12 percent and 6 percent interest rate?- Don't let negative things break you, instead let it be your strength, your reason for growth. Life is for living and I won't spend my life feeling cheated and downtrodden.
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- Don't let negative things break you, instead let it be your strength, your reason for growth. Life is for living and I won't spend my life feeling cheated and downtrodden.
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Sass, I am not saying lower interest rates and therefore cost of servicing a loan does not make purchasing of homes available to more persons.Originally posted by Assasin View Post
I am saying the matter of high rates of default is not linked to those low interest rates but rather to number of persons receiving mortgage loans they cannot afford.
It is the 'not being able to afford' the mortgage loan servicing that causes defaults. You know once the person or persons borrowing cannot afford to service the mortgage loan the systems in place disqualify them from receiving the loan.
Even the 'no doc loans' are backed with a system that depend on the loan officer and the underwriter to weed out those who cannot afford the mortgage payments.
It is when those 'on the front lines' do not follow the guidelines/flout the regulations and borrower(s) knowingly enter into those arrangements that default rates increase. It is collusion by those parties and sometimes others (compliance and or underwriting supervisors) that allow those loans to be made. It is not the interest rate that is the problem. It is the approval and giving of an affordable loan contrary to loan guidelines or the taking of that loan on a 'wing and a prayer' by the borrower that is the problem."Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has."Comment
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Well then low interest rate could be considered fuel to the fire as this is one of the main tool the policy maker and the central bank have to control everything.
With a 7 percent interst rate over the last two years there would not have been so much opportunity for the "leach" bank to take advantage of.
The government can't be blame for it all but it is their duty to oversee and monitor things properly so they have a major role to play, they can't pass off the blame.- Don't let negative things break you, instead let it be your strength, your reason for growth. Life is for living and I won't spend my life feeling cheated and downtrodden.
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- Don't let negative things break you, instead let it be your strength, your reason for growth. Life is for living and I won't spend my life feeling cheated and downtrodden.
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As long as you have humans giving the 'go' or 'no'...flouting of the rules will occur. Somehow you have to get it through to the person on the frontlines that the risks/reward ratio is overwhelmingly in favour of terrible punishment being received if they flout the rules or 'bend' the regulations if caught. Hopefully the number of persons willing to do so...trus mi some still a guh doit - will fall dramatically...and that percentage willing to flout the rules or 'bend' the regulations would be so low that another meltdown would not occur...but even as I am saying that would be a possibility...I am thinking man. is man. is man...and there shall be enough willing to take the risk that...Originally posted by Assasin View Post
"Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has."Comment
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so who is suppose to regulate that? nuh the government fi minimize it?- Don't let negative things break you, instead let it be your strength, your reason for growth. Life is for living and I won't spend my life feeling cheated and downtrodden.
Comment
- Don't let negative things break you, instead let it be your strength, your reason for growth. Life is for living and I won't spend my life feeling cheated and downtrodden.
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..at the base level - the individuals - loan officer and potential borrower (individual accountability) ...then each 'mortgage company' or 'bank'...then the government - city, state and central. Nuff-nuff levels supposedly to prevent the rot.Originally posted by Assasin View Post
...but the risk takers and manipulators of rules and regulations go...
"Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has."Comment
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