Mortgage brokers,offered less-credit-worthy home buyers subprime, adjustable rate loans with low initial payments and exploding interest rates.
Real estate agents, most of whom work for the sellers rather than the buyers, earned higher commissions from selling more expensive homes.What piece of legislation forced mortgage brokers to do thinks like sell a $400,000 home to people who could?The Housing Act (from 1994!!!) DIDN'T force any bank to make sub-prime loans, in fact sub-prime loans are not mentioned anywhere in the Housing Act.
They were an invention of the Banks, whose internernal memos claimed (there is NO risk in the Housing Market) and instructed its officers to start making loans to anybody and everybody even with no pay stubs, regardless of the price.
The Fannie Freddie talks were about TRYING TO GET THE BANKS TO STOP MAKING THESE LOANS!!!
THEY REFUSED!!!! And kept right on giving them AGAINST the advice of regulators.
The idea that Barney Frank had anything to do with this is just blatant right wing poppycock.What piece of legislation forced mortgage brokers to do thinks like sell a $400,000 home to people who could?
I am frightened by the level of lying the right wing media is comfortable with.
We are all in big trouble if something's not done to bring fairness and balance back to media.
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What piece of legislation forced mortgage brokers to do thinks like sell a $400,000 home to people who could?At one time, buyers were required to have a percentage of the value as a down payment. Government regulations removed this requirement so that buyers could borrow up to 120 percent of the homes value. That was a bad move on governments part. But really, buyers, banks, and realtors bear the largest blame, they knew the risks, but they didn't care since they profited.LOL at attempts to blame this on one political party. That is a losing argument.
D's %26amp; R's in Congress pushed home ownership in light of studies that demonstrated that poor folks who owned their own home did a better job raising their kids and were more productive members of society. As a result, both parties, led by Clinton and then Bush, push home ownership as a way to elevate the poor.
Greedy banks and lack of regulation (WS) caused our problems. That also was a bipartisan failure.What piece of legislation forced mortgage brokers to do thinks like sell a $400,000 home to people who could?the community reinvestment act dod NOT .."force" lenders to :
run loans thru w/ out documentation, or verified income...or hire former fast food employees w/ NO finance background...
no..that was ALL on the CEO's of the lenders who were looking at a housing boom and wanted fast cash, not stable homeowners...
had they in fact acted responsibly, NONE of those loans you are talking about would have been for such large amounts and would have been relative to the borrowers income....
sorry...business people blew this one....not the Gvt...What piece of legislation forced mortgage brokers to do thinks like sell a $400,000 home to people who could?
Clinton took Carters crap bill and injected a move that made it mandatory that welfare be considered means to pay back a loan for a house that the minority owner could never possibly pay back. Another gem given to us by the loony left.
Why did 0bama himself sue Citibank??
http://iusbvision.wordpress.com/2008/09/鈥?/a>What piece of legislation forced mortgage brokers to do thinks like sell a $400,000 home to people who could?
The Community Reinvestment act by Jhimmi the Dhimmi, placed on steroids by Bill Clinton.
What kind of an idiot applies for a 400K mortgage when they can't afford it?
The Community Reinvestment Act. Look it up.
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