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Politics : Liberalism: Do You Agree We've Had Enough of It? -- Ignore unavailable to you. Want to Upgrade?

To: Catfish who wrote (47703)	9/19/2008 9:44:08 AM
From: sandintoes	1 Recommendation Respond to of 224705

That's why all the democrats are skipping out of town as fast as they can.

To: Catfish who wrote (47703)	9/19/2008 10:25:27 AM
From: cirrus	Respond to of 224705

I agree 100%. Banks should not be lending to unqualified home buyers. I could never understand the logic of extending a variable rate loan to a person barely able to meet payments at 1% interest, knowing that the rate would rise to market rates in 3 to 5 years. However, the vast majority of defaults came from areas outside the redlined areas that the CRA required banks address. Just look at where the foreclosure rates are highest - its not the inner cities. As the University of Michigan's Michael Barr points out, half of sub-prime loans came from those mortgage companies beyond the reach of CRA. A further 25 to 30 percent came from bank subsidiaries and affiliates, which come under CRA to varying degrees but not as fully as banks themselves. (With affiliates, banks can choose whether to count the loans.) Perhaps one in four sub-prime loans were made by the institutions fully governed by CRA. amid all the recent recriminations, even lenders have not fingered CRA. That's because CRA didn't bring about the reckless lending at the heart of the crisis. Just as sub-prime lending was exploding, CRA was losing force and relevance. And the worst offenders, the independent mortgage companies, were never subject to CRA -- or any federal regulator. Law didn't make them lend. The profit motive did. prospect.org Almost all of the financial problems we see today are based on bad mortgage lending. That would be lending money to people to buy homes who didn't qualify for a loan.