Shades, this is where Chromatic is conveniently glossing over the fact. One person need not take all the trillion. That is just a number. what if every individual who has taken the home loan defaults?
What if morgan fairchild shows up at my door tomorrow? I bet not all default - some will some wont. Look there was already one poster on real estate thread who said he was thinking about taking the HELOC and burying it in the woods and walking:
Message 22320729
Read all the responses there why this was not gonna work. What do you think of his retirement plan?
The banks have given every house owner 500K loan and the Fed is taking these loans into its books.
Ok.
Knowing that the Fed is going to be tolerant, every house owner is going to say, Oops I'm sorry - but thank you for waiving the loan.
Fat chance - they going after those katrina refugees aren't they? Gubbment not gonna be so nice to the point the gubbment blows up!
Chromatic is implying that the Fed will congratulate the house owner!! Knowing this, the house owner will go and bid a land where a manufacturing plant is going to be built!! why does he care as long as Fed is willing to write off his loan!!
To a point gubbment wants you to spend - but if you get too crazy with it - you get reigned in.
Ofcourse, Banks dont care as they will be passing this loan to the Fed!!
Many loantechs are putting bad loans out there knowingly that can only end in default - but many loans won't.
So tell me, why should people work?
I don't - I sit here and chat about rothbard with you - that isn't work - that is fun!
Are you saying, govt will take only shades' loan and not Jay's
Well oblomov said he did work on credit ratings standard scoring - it is very good system - but loan officers making loans stepping outside of it - but banks looking at that now eh?
Message 22375892
US Regulators Review Proposed Guidelines On EXOTIC Mtges
WASHINGTON (Dow Jones)--U.S. regulators will review public comments to decide if changes are needed to recently proposed guidelines for EXOTIC home mortgage products, the comptroller of the currency said Thursday.
In December, the Office of the Comptroller of the Currency and other federal regulators proposed guidelines addressing unique risks from loan products such as "interest only" and "payment option" mortgages. Compared with traditional loans, these mortgages typically reduce monthly loan payments in the first five years of repayment but sharply increase payments afterwards.
"Our proposed guidance makes clear that these products are perfectly appropriate if underwritten properly with meaningful disclosures - indeed, the essential purpose of the proposed guidance is to help lenders achieve this goal," Comptroller John Dugan said in speech prepared for delivery to a community development conference in Los Angeles.
Many industry commenters objected to the specificity of the proposed guidance, claiming regulators were encroaching on underwriting decisions traditionally left to lenders, Dugan said.
Another concern was that the proposal assumes a worst-case scenario for all borrowers, rather than allowing appropriate assessment of individual borrowers, he said.
But the comptroller defended a cautious regulatory approach to EXOTIC mortgages. "It is in neither the bank's nor the borrower's best interest to have a mortgage amount, or a payment structure, that a borrower is unlikely to be able to afford in the long run," he said.
The guidance tries to ensure that lenders address these issues at the inception of the loan, taking account of "any reasonable foreseeable payment requirements possible under the terms of the loan," Dugan said.
Federal regulators looked at actual marketing material for payment-option adjustable-rate mortgages, and they found in many cases that sales pitches focused mainly on low initial monthly payments, with relatively little discussion of much higher payments due later on, he said.
The comptroller noted monthly payments for a typical payment-option adjustable-rate mortgage can double after the initial five-year repayment period if interest rates rise two percentage points during that period.
Dugan used California as an example of a market where soaring home prices can compel low- and medium-income buyers to use EXOTIC mortgages. From 2000 to 2005, the median price for an existing home in California increased 117% to $524,000, while over the same period household income rose only about 10%, he noted.
-By Campion Walsh; Dow Jones Newswires; 202 862 9249; campion.walsh@dowjones.com
(BTw, that is me) loan?
Where is chromatic - why is he not posting anymore?
How does Fed draw a line - who gets it and who does NOT?
The regulators gonna debate that from the above article eh?
i.e home owners can get loan and default but for the CEOs, there is some limit to which he will be excused.
Yes - ceo's with power and money and connections get special treatment over regular j6p - CEO plays golf with the judge. J6p kid stole judges car - who is judge gonna like better?
Is this documented? You are saying moral hazard can be tolerated with limit. Can you explain how?
I turned in illegal drug gangs Jay - I had hard evidence on them - taped session doing drug deals - making hits on people - they all still running free if still breathing - i think most dead now from bad drug deals or overdoses - I was the one sent to a dumpy fla trailer park to enter witness protection - things don't always turn out like you expect - I didn't have enough powerful friends and money and all the people I was trying to get arrested did - so there you have it - that should teach you all you need to know how things work in this world.
Message 22374888
Prosecutors have alleged that Ahmed fraudulently obtained about $1.4 million from a variety of financial institutions through home-equity loans and lines of credit using the personal identification information of two Staten Island residents. The institutions included units of Washington Mutual Inc. (WM), Wachovia Corp. (WB) and Wells Fargo & Co. (WFC).
The government also has alleged that Ahmed purchased more than $180,000 in goods and services by using stolen identities to obtain credit cards. The cards were obtained from a number of credit-card providers, including units of JPMorgan Chase & Co. (JPM), Citigroup Inc. (C) and American Express Co. (AXP). |
