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| Home Front Economy |
| THE REAL SCANDAL |
| 2008-02-08 |
| Posted by:anonymous5089 |
| #2 STARS-N-STRIPES > CREDIT [Lending] STANDARDS TO BE TIGHTENED. |
| Posted by: JosephMendiola 2008-02-08 18:46 |
| #1 I have been waiting for this analysis, because I remembered reading about the "dire plight of those discriminated redlined neighborhoods" in the Chicago Trib. You also had a glimpse of the future anytime you bought or refi'd your home or financed a car, when the broker might say "Um, we can't do this loan, but I know another company that can". So then the standards were lowered, not by your named "brand" you had heard of, but by some other unknown entity with slightly to vastly higher rates. Standards were replaced, from the lending institutions perspective, with the lure of higher closing fees and interest rates. Then, with housing pricing escalating to cover all sins, after about the 200th mail solicitation to refinance, the house you couldn't get a mortgage on before now was an ATM machine. The story of the "little old inner city lady" who owned her tiny house outright in 1997 that is now being forclosed on for a mortgage debt of $125,000 is the result of foolish behavior all the way around. But it sold newspapers then, with Jesse Jackson calling us racists for not loaning her money and sells newspapers now, with Jesse pointing to the greed of the same mortgage bankers he strong armed before. |
| Posted by: Capsu78 2008-02-08 15:49 |