Author Topic: Who Owns Your Mortgage? Well you might be shocked-  (Read 9173 times)

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CreditCardSlayer

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Re: Who Owns Your Mortgage? Well you might be shocked-
« Reply #15 on: November 20, 2011 04:05:43 AM »
Our current crisis can be traced to certain groups and politicians using the Community Reinvesment Act (CRA) to force banks to take on loans that they would otherwise not have taken. Every step taken from there was the banks reaction to the greatly increased risk.

Now not every decision they made to handle the increase in bad debt was a winner but the roots all go back to that act. And of course there were many other factors but that was the first big stepping stone

This may be true, but the reason the government did nothing to fix the situation is they did not want to interfere with wall street's involvement or that of their "investors". If it were just up to the government, it would have been a no brainer to give people another five years to sell their homes.

The difference being the interest rate would have very slowly started to ratchet up every three months.
This would have given people time to sell their homes without being desperate or to foreclosure.

This would have been a no brainer for the government because it allows people to keep working as they take time to figure out what to do.

cbarnett97

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Re: Who Owns Your Mortgage? Well you might be shocked-
« Reply #16 on: November 20, 2011 04:21:56 AM »
This may be true, but the reason the government did nothing to fix the situation is they did not want to interfere with wall street's involvement or that of their "investors". If it were just up to the government, it would have been a no brainer to give people another five years to sell their homes.

The difference being the interest rate would have very slowly started to ratchet up every three months.
This would have given people time to sell their homes without being desperate or to foreclosure.

This would have been a no brainer for the government because it allows people to keep working as they take time to figure out what to do.
The government is the one that created the situation. Over the past few administrations there was a belief in Gov't that everyone should be able to get a home loan. That belief led politicians to force banks to take on loans that they did not want to take (people w/ bad credit) by using the teeth that the CRA was given in the mid 90's.

deepkimchee

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Re: Who Owns Your Mortgage? Well you might be shocked-
« Reply #17 on: November 20, 2011 04:47:58 AM »
I don't totally buy it.  Clearly, the banks don't a thing a they don't want to do.
I refuse to let a piece of paper intimidate me

My statements are educated/non-educated guesses, not legal advice

CleaningUp

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Re: Who Owns Your Mortgage? Well you might be shocked-
« Reply #18 on: November 20, 2011 02:55:27 PM »

With FHA and Fanny and Feddy assuming the mortgages for the purposes of securitization, the banks had little risk.  And at that time, both the Banking Committees of both House and Senate were in tune with the objective, and the powerful senior members were more than willing to either introduce punitive legislation or hold legislation hostage to assure that the banks went along with the deal.

sylvester37

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Re: Who Owns Your Mortgage? Well you might be shocked-
« Reply #19 on: January 01, 2012 11:38:00 PM »
Our current crisis can be traced to certain groups and politicians using the Community Reinvesment Act (CRA) to force banks to take on loans that they would otherwise not have taken. Every step taken from there was the banks reaction to the greatly increased risk.


This is also ABSURDLY incorrect, and really a much more dangerous lie that works to let the banks that blew the market up (as they've done before) for their own short term gain ... off the hook. It's difficult , if not impossible, to find one example in the entire nation of the government "forcing" a bank to take on a loan. Discrimination laws have nothing to do with the housing bubble, and even less to do with the government "forcing" any bank to do anything. Instead of being forced, the banks actually WILLINGLY negotiated mortgages to the "sub prime" for the people that some insist were giving loans they didn't qualify for. In this way, they contributed even more to the bubble by garnering high interest rates for more short term gain :-/

CleaningUp

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Re: Who Owns Your Mortgage? Well you might be shocked-
« Reply #20 on: January 01, 2012 11:44:44 PM »
I would suggest you do some more reading, and some more thinking.

The Community Reinvestment Act was one of a series of laws and policy changes that ended up in what we know today as the housing crisis.  They were coupled with the rewards of risky investment and failure of banks to have enough in the game to forestall the errors in judgment.

There is more than enough blame to go around between policy makers, law makers, bankers, regulators, and consumers to make every one smell like rotten carrion .

sylvester37

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Re: Who Owns Your Mortgage? Well you might be shocked-
« Reply #21 on: January 01, 2012 11:53:19 PM »
I would suggest you do some more reading, and some more thinking.

The Community Reinvestment Act was one of a series of laws and policy changes that ended up in what we know today as the housing crisis.  They were coupled with the rewards of risky investment and failure of banks to have enough in the game to forestall the errors in judgment.

There is more than enough blame to go around between policy makers, law makers, bankers, regulators, and consumers to make every one smell like rotten carrion .

I would suggest you do the same, and keep it OFF the right wing "sources". There is actually more truth in saying the government owned the mortgages than there is in even implying government regulation created this crisis. As many of us knew then, and are finding more every day, regulation is the solution and NOT the problem. It was the lack of government regulation that caused all this, and those facts are quite clear.

 Like I said, show me one person, just ONE that was sold a mortgage by a bank because the "government forced the bank to do so". I mean, since this is surprisingly still a platitude of some blinded folks in this country - then they should certainly have  a few examples out there. What makes you think that a discrimination law is the same or has the same effect as forcing a bank to make a loan? That's apples and oranges. Banks doled out mortgages for high amounts to anyone and everyone back in the day. I know, I got one of those bum mortgages and mine was "full doc" at the time. Those are facts. The whole blaming the bank-induced housing bubble on a millions of struggling middle classers like me, is the political side and it's patently wrong.

CleaningUp

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Re: Who Owns Your Mortgage? Well you might be shocked-
« Reply #22 on: January 02, 2012 12:04:19 AM »
The entire Community Reinvestment Act was designed to encourage the provisions of banking products...ALL banking products...to what was determined to be "under-serviced areas" of the economy...in other words, those on the lower ends of the the credit score meter and in the lower regions of the socio-economic ladder. It outlawed "redlining".

Couple that with the legislative elimination of the line between banking and investment banking, and the major ingredients of disaster were in place.

You are now being deliberately obtuse, I fear. But's I'll give you the benefit of the doubt one more time.



sylvester37

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Re: Who Owns Your Mortgage? Well you might be shocked-
« Reply #23 on: January 02, 2012 12:09:49 AM »
The entire Community Reinvestment Act was designed to encourage the provisions of banking products...ALL banking products...to what was determined to be "under-serviced areas" of the economy...in other words, those on the lower ends of the the credit score meter and in the lower regions of the socio-economic ladder. It outlawed "redlining".

Couple that with the legislative elimination of the line between banking and investment banking, and the major ingredients of disaster were in place.

You are now being deliberately obtuse, I fear. But's I'll give you the benefit of the doubt one more time.

Well, this isn't a political forum, so I'll refrain from that which I discuss and research most :)

Sorry about my reaction, but what you are saying is wrong and I have personally been severely damaged by these banks and their unregulated actions. However, the neoconservative ideas that blew up this country and the housing market are still surprisingly held dear and true by some. So , I guess we'll leave it at that.

KFMAN

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Re: Who Owns Your Mortgage? Well you might be shocked-
« Reply #24 on: January 02, 2012 12:18:10 AM »
Where do I apply for overnight TARP payments? 

Flyingifr

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Re: Who Owns Your Mortgage? Well you might be shocked-
« Reply #25 on: January 02, 2012 01:16:08 AM »
Quote
Note:  The Federal Reserve was founded in the early 1900s for a very specific purposes, and built on the concepts that Hamilton propounded in the 1830s regarding the necessity of a national bank.

Alexander Hamilton was killed in a duel in 1804, so he didn't do much of anything in the 1830's.
BTW-the Flyingifr Method does work. (quoted from Hannah on Infinite Credit, September 19, 2006)

I think of a telephone as a Debt Collector's crowbar. With such a device it is possible to pry one's mouth open wide enough to allow the insertion of a foot or two.

Debtors Exams are the perfect place for us Senior Citizens to show off our recently acquired Alzheimers.

Founder of the Credit Terrorist Training Camp (Debtorboards)

CleaningUp

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Re: Who Owns Your Mortgage? Well you might be shocked-
« Reply #26 on: January 02, 2012 03:40:58 AM »
You are correct, my error.  But Hamilton was instrumental in setting the frame work for what we know today as a central bank in this country.

My view of the banking crisis is far from right-wing.  It is formed from a study of political, economic, and social interactions between government, business and the consumer.

I again say, there is enough slime in the entire economic collapse of 2008 to make all parties equally denisons of the same swamp.


On a broader scale, no one has yet conquered the boom-and-bust cycle.  This is but the latest of the collapses, but it far from the last. This view is neither right-wing or left, but rather an understanding that as much as the world "changes", it really does not.




« Last Edit: January 02, 2012 03:46:34 AM by CleaningUp »

Fighting Irish

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Re: Who Owns Your Mortgage? Well you might be shocked-
« Reply #27 on: January 02, 2012 04:23:57 AM »
+1.

I am certain that I am to the left of CU, but it doesn't matter; neither side can take full credit for this mess.

Nor is the fact of economic messes something that is likely to just go away.

All any of us can do is our best to protect ourselves from the fallout from this one, and to lessen the impact of the next, if we're lucky enough to be around for it.

One of my favorite teachers, Jim Rohn, was often asked to speak to groups of business people, because he'd been a successful entrepreneur and a  speaker for decades. Asked what the future held for any group's particular industry, he always said the same thing, "There will be good years, followed by bad ones."

The same is true for any industry, any country, and any individual. We're learning at DB to protect our interests against those who lend easy money that's not so easy to get paid back.

Our next lessons, should we be smart or sensible enough to learn them, is to be independent of them, entirely. At that point, their booms and busts will be an anthropology lesson for us, not a personal economic crisis.
Dang it, Jim! I'm a nurse, not an attorney!

(The rest of you, keep that in mind, too.)

cbarnett97

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Re: Who Owns Your Mortgage? Well you might be shocked-
« Reply #28 on: January 02, 2012 10:04:50 AM »
I agree there is no one person or group to blame. The banks were put into a very uncomfortable position and then the way that they decided to deal with it was just about the worst way that they could have possibly done it.

carnegie_IB

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Re: Who Owns Your Mortgage? Well you might be shocked-
« Reply #29 on: September 10, 2014 12:46:11 AM »
here is a great resource about robo signing, chain of title et all.