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To: sandintoes who wrote (40060)	12/30/2009 9:14:14 AM
From: Peter Dierks	Respond to of 71588

Lenders should be rewarded for risk. Lending practices like that tend to be decried by proponents of socialism as redlining. For example: If a couple applies for a loan and the lowest mortgage rate is 6% applicants with different qualifications might pay different rates. Take the Browns who both have well paying jobs and have both been at their jobs for more than five years and no substantial loans. They are applying for 80% of the value. they might get the 6%. Take the Smiths the wife works at a low paying job she has held for two years with three years at her last job. The husband has had a moderately paying job for a year and a half and his last two jobs he lasted less than two years. They owe blue book on two cars, etc. They are applying for 90% of the value. They might get offered 9% or more. This would be pricing in risk.