Do you really understand our country's housing/real estate situation?
Sunday, 4. July 2010
On Aug.31, Bush urged Congress to allow the Federal Housing Administration to insure larger loans and to suspend the practice of counting surpluses from canceled mortgages as taxable income.
All of a sudden, even staunch Bushites are crying and whining.
What Bush did was actually too little, too late.
In the 90s, the market for subprime housing loans exploded, and wild growth allowed new and first-time buyers to purchase property, opened lenders to increased profits.
Lenders, (many of them Republicans), believed that home prices would rise interminably, allowing borrowers to pay off their loans with the equity they’d squeeze out of their homes.
Then, borrowers began to default and the market for subprime loans contracted rapidly.
Then, last April, New Century Financial, one of the nation’s largest subprime lenders, filed for bankruptcy.
Up till now, Bush has supported unfettered subprime lending, mostly to benefit his banking supporters.
Now…he’s the homeowner’s "friend."
The glaring truth is that the situation he’s trying to "fix" is one that he, himself helped to create.
Ya, tenthamend…and the lenders were forced at gunpoint to grant the loans. Sheesh.
THANK YOU, Karl M. for that experienced input!.
But, as Karl alluded, the lending institutions were MORE than willing to grant the loans, just like credit card companies want you to borrow money. Just try to pay one off in full some time and SEE what happens…
Does any sane person believe that many of these lenders weren’t Republicans? What were they thinking?
E-Z money?
joeanimal Says:
ya, and you cant blame the subprime homeowners for trying to move up a level and trying to accomplish one of the american dreams!!!
what a lot didnt know is that the economy changes, interest rates rise, the taxes and insurance and maintainance and repairs and heath problem setbacks, loss of income and a couple of paychecks can cause ya to come tumblin down!!!
they should have educated them that you need reserves in case of setbacks wich will happen to everyone eventually!!
then with no health care they have to continue working while sick or injured!!!
man, what a tangled web we weave, in the name of greed!!!
and most these bas***ds have enough money already to last about 10 lifetimes!!!
"mistakes were made"!! "we will look into this"
and these lending companies woill bail out and start somewhere else all over again!!!
Albus_Dumbledore Says:
bush and cronys can’t have it both ways
americanhero_aa Says:
Bush does it again. An unjust war at home.
tenthamend Says:
I guess those people were forced at gunpoint to take out those loans?
a_bush_family_member Says:
Blame Bill Clinton (explained further down), not President Bush. Also, President Bush is providing a much better solution than what Hillary Clinton wants. It is obvious he knows ten times more about real estate and banking than Hillary Clinton does.
Hillary Clinton said the U.S. government should set up a $1 billion fund to help people. Anyone that knows anything knows $1 billion won’t do anything.
The problem is with a shortage of credit. President Bush is addressing that problem.
Blame Clinton. He basically told the banking industry that it was ok to make subprime loans. He also allowed the loans to be sold to the U.S. government’s home loan division.
Clinton Allowed The Government To Enter The Subprime Mortgage Business. Freddie Mac is one of the largest mortgage lenders in the world.
""Freddie Mac, one of the primary government-sponsored enterprises involved in the purchase of mortgages, recently announced plans to enter the secondary market in subprime loans by purchasing significant numbers of "A minus" subprime mortgages by 1998 and the higher-risk "B and C" loans by 1999.(20) "
http://www.ftc.gov/os/1998/03/grass5.htm
The report was generated in 1998.
Quote"Prepared Statement of the
Federal Trade Commission"
http://www.ftc.gov = Federal Trade Commission
Lillian Says:
Yes I understand it, and for you to blame the problems on President Bush is irresponsible and wrong.
A Person Says:
Please. How did any President form or tell existing money lending companies how to run their businesses? And where did you get most people in financial trouble are Reps?
Let these idiot companies and borrowers suffer. You overextend yourself you deserve what you have coming.
Chi Guy Says:
Yes. Its a train wreck in motion
CHARITY G Says:
It’s no more Bush’s fault then the dot.com bust was Clinton’s fault. . . However, I do think this is the "pit fall" of the ownership society . . . some people are just not smart enough to manage their future.
Conan Says:
All I can say if you bought a home in last 4 years "you got Bushed"
Locutus1of1 Says:
Gee, remind me what year in the ’90′s Bush was elected.
Karl M Says:
I’m not sure if Bush supported unfettered subprime lending but nothing was done to curb it (they probably didn’t think these loans would go sour).
The biggest problem was that the company’s that made the loans sold them to wall street so they didn’t care what kind of rates the homeowner was getting. Wall Street loved them because they were promised high returns on these loans that were doomed to fail in the first place.
As a former mortgage broker, I left the industry for just this reason. I couldn’t believe the loans we we making, I thought they were dumb for the borrower and the lenders. We were giving 100% no money down loans to borrowers that literally never paid a bill on time in their lives.
I wouldn’t blame the Bush administration for this. The mortgage industry has been this way for a long time. It just so happens that the chickens are now coming home to roost.
Eric the Great *USA* Says:
Its about the "O" the B.O. in Washington that is. This started when Regan got elected the very first thing, ( well no the very first thing, he traded arms for prisoners first) he did was deregulate the lending industry. Savings and loans and credit unions were doing commercial lending. Yah baby it was party time. If you remember the state of RI credit unions weren’t even FDIC approved or insured. A lot of bankers , lawyers and investors went to prison when the feds closed in on them after the poo hit the fan. Its amazing what you can find when you look for it.
Condor Says:
Real estate sales in US just sucks!