Reply to thread

Message

<blockquote data-quote="squeak9798" data-source="post: 5028175" data-attributes="member: 555320">Neither the government nor special interest groups can force a private lender into making highly risky loans to low income borrowers.&nbsp; You can not discriminate against low income borrowers.&nbsp; But lenders are not required to lose money by handing out home loans to those who truly can&#039;t afford them or are on extremely risky terms.How many of those who have lost their house in the mortgage crisis are &quot;low income&quot; households?&nbsp; I would need to check the statistics, but I would gander a guess that the majority or close there-to of those losing their homes are middle class Americans who would have qualified for a home regardless.....just not as expensive of a home.&nbsp; But with the &quot;new&quot;, flashy products....they could buy more home with a lower (initial) payment.To say you can&#039;t blame the mortgage industry is just ludicrous and highly idiotic.&nbsp; No, it isn&#039;t entirely the industries fault.&nbsp; Blame lies with both the consumer and government aswell.&nbsp; But to let them, and hear you, use the customer and&nbsp; government as a scapegoat is laughable at best.&nbsp; It was greed-driven by the market, devising programs that would maximize growth and allow unqualified borrowers obtain a home loan or over-qualify a borrower for a loan.Yes, the programs were there because the uniformed consumer &quot;fell&quot; for the lenders or brokers sales antics and either 1) didn&#039;t actually understand what they were getting themselves into, 2) didn&#039;t have enough foresight to see what problems might arise with these products, and/or 3) were lied to by the lender/broker about the terms of the loan (i.e. Countrywide).&nbsp; The lenders offered these programs because they wanted quick growth with good income potential.</blockquote>

[QUOTE="squeak9798, post: 5028175, member: 555320"] Neither the government nor special interest groups can [I]force[/I] a private lender into making highly risky loans to low income borrowers. You can not discriminate against low income borrowers. But lenders are not required to lose money by handing out home loans to those who truly can't afford them or are on extremely risky terms. How many of those who have lost their house in the mortgage crisis are "low income" households? I would need to check the statistics, but I would gander a guess that the majority or close there-to of those losing their homes are middle class Americans who would have qualified for a home regardless.....just not as expensive of a home. But with the "new", flashy products....they could buy more home with a lower (initial) payment. To say you can't blame the mortgage industry is just ludicrous and [I]highly[/I] idiotic. No, it isn't entirely the industries fault. Blame lies with both the consumer and government aswell. But to let them, and hear you, use the customer and government as a scapegoat is laughable at best. It was greed-driven by the market, devising programs that would maximize growth and allow unqualified borrowers obtain a home loan or over-qualify a borrower for a loan. Yes, the programs were there because the uniformed consumer "fell" for the lenders or brokers sales antics and either 1) didn't actually understand what they were getting themselves into, 2) didn't have enough foresight to see what problems might arise with these products, and/or 3) were lied to by the lender/broker about the terms of the loan (i.e. Countrywide). The lenders offered these programs because they wanted quick growth with good income potential. [/QUOTE]

Verification