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Thread: Top Banker Says Government Caused Housing Crisis

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    Default Top Banker Says Government Caused Housing Crisis

    Top Banker Says Government Caused Housing Crisis

    Bribed by federal bailouts and threatened by lawsuits, top bankers have grudgingly gone along with the narrative that greed and deregulation caused the recession.
    But one prominent CEO is breaking ranks as he leaves the embattled industry.


    Read More At IBD: Top Banker Confirms 'Misregulation' Caused Crisis, Re-Regulation Worsens - Investors.com


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    Default Re: Top Banker Says Government Caused Housing Crisis

    I got a five spot says this puke CEO is on the payroll to now "come clean" about it all.

    Who devised the predatory lending schemes these banks led unwary consumers into? Who inflated property values? The government? Really?

    After the slap in the face these bankers handed the American public after the bailouts they will do and say anything in an attempt to lift themselves back into the good graces of the middle class consumer.

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    Default Re: Top Banker Says Government Caused Housing Crisis

    Quote Originally Posted by 222lifer View Post
    I got a five spot says this puke CEO is on the payroll to now "come clean" about it all.

    Who devised the predatory lending schemes these banks led unwary consumers into? Who inflated property values? The government? Really?

    After the slap in the face these bankers handed the American public after the bailouts they will do and say anything in an attempt to lift themselves back into the good graces of the middle class consumer.
    Who inflated property values? Really? One you need cash, here comes Fannie and Freddie. Read up

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    Default Re: Top Banker Says Government Caused Housing Crisis

    Quote Originally Posted by strapdrager View Post
    Who inflated property values? Really? One you need cash, here comes Fannie and Freddie. Read up
    Fannie and Freddie created all the predatory lending schemes that the lenders sold? Fannie and Freddie completed the apprasials of the property?

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    Default Re: Top Banker Says Government Caused Housing Crisis

    Yes the Gov set the bar on the loans and then bought the loans the banks wrote pushing the never ending supply of money on the streets. The combination of money and easy credit where almost anyone qualified gave way to a wave of buyers pushing the prices up.

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    Default Re: Top Banker Says Government Caused Housing Crisis

    Quote Originally Posted by strapdrager View Post
    Yes the Gov set the bar on the loans and then bought the loans the banks wrote pushing the never ending supply of money on the streets. The combination of money and easy credit where almost anyone qualified gave way to a wave of buyers pushing the prices up.
    Perhaps I am confused here. Aren't you referring to Federally insured loans? I had one FHA loan (my first loan long before any of this) and everything else after that was conventional. No government entity owned my last several notes. That also goes for those suckered into the "interest only" schemes that caused the losses here in Utah.

    Appraisers worked independently and inflated the value of the properties. Crooked bankers wrote loans with the specific intent of reclaiming the surrendered properties after forclosure. This happened before what is claimed in that article. Deregulation rears it's ugly head again.

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    Default Re: Top Banker Says Government Caused Housing Crisis

    Quote Originally Posted by 222lifer View Post
    Perhaps I am confused here. Aren't you referring to Federally insured loans? I had one FHA loan (my first loan long before any of this) and everything else after that was conventional. No government entity owned my last several notes. That also goes for those suckered into the "interest only" schemes that caused the losses here in Utah.

    Appraisers worked independently and inflated the value of the properties. Crooked bankers wrote loans with the specific intent of reclaiming the surrendered properties after forclosure. This happened before what is claimed in that article. Deregulation rears it's ugly head again.
    Appraisers can say what they want but that wouldn't make it so. as long as buyers are getting in line to buy then the price is right.
    In 2000 I bid the asking price on a house and was out bid by someone who offered higher then that. Buyers where everywhere few houses were for sale. Higher prices

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    Default Re: Top Banker Says Government Caused Housing Crisis

    Crooked bankers wrote loans with the specific intent of reclaiming the surrendered properties after forclosure.
    Why, were there hidden things in the Note? What are people too stupid to know they can't afford 10,000 a month.
    What happen was people stopped buying house(credit crunch) followed by losing their jobs which meant they couldn't afford the mortgage.
    I know a lot of people that lost their house in FL and it was all job related.

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    Default Re: Top Banker Says Government Caused Housing Crisis

    Quote Originally Posted by strapdrager View Post
    Appraisers can say what they want but that wouldn't make it so. as long as buyers are getting in line to buy then the price is right.
    In 2000 I bid the asking price on a house and was out bid by someone who offered higher then that. Buyers where everywhere few houses were for sale. Higher prices
    Strappy, appraisers did pump the prices up. It happened over several years but those false values were related to the predatory lending practices that were running rampant in the banking industry. Young and old buyers were lured into the pit with these exotic loans that were nothing but schemes to basically rent them the property for a lifetime. They would never pay anything on the principle balance of the loan. This did not happen overnight. Once again degregulation failed its much touted and intended purpose....Or did it? There was a fox in the hen house and they call them bankers.

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    Default Re: Top Banker Says Government Caused Housing Crisis

    Quote Originally Posted by strapdrager View Post
    Why, were there hidden things in the Note? What are people too stupid to know they can't afford 10,000 a month.
    What happen was people stopped buying house(credit crunch) followed by losing their jobs which meant they couldn't afford the mortgage.
    I know a lot of people that lost their house in FL and it was all job related.
    The ads in the papers told of low interest mortgages, interest only advantage, reverse equity, all sorts of exotic traps. They were running so many schemes it was hard to keep track. Most folks all qualified for these loans. Sometimes there were hidden things in the notes. With crooked real estate agents working together with the loan officers. It was horrible!

    One or two incomes with very little cash needed up front is about all it took to get the ball rolling. These were not FHA loans either. All conventional. It was a war to see who had the lowest down payment required. It all seemed good to these folks buying into their BS. Just one problem though.... One little hiccup in the finances and they soon realized that this budget of theirs was terribly lopsided. They were so strapped (no pun intended) into their homes they could do nothing else. They had no spare change at the end of the month. They were married to their houses.

    Tired of the life they were saddled with, many around here simply walked away because they were unable to sell their property. Or if they did sell they were so upside down in the property they still owed 50- 100 grand after the home was sold! There were thousands of stories out there just like this.

    The qualification proccess I went through just before the time period I spoke of was a nerve racking, stressful time in my life. I had just gone through a divorce and my child support was more than double what some made in this state. The best I could do was a very modest fixer upper that had been a HUD home. It needed a great deal of work but it was in the price range I could afford. I got a modest loan for a modest home.

    The interest rate was 7.5% on a 30 year note. I refinanced twice for lower interest rates going with another 30 then a 15 year term in a 3 year period. No points and no closing fees through Washington Mutual. We nearly had the thing paid off when YRC ran into trouble and I stretched it back out again to 10 years so if anything were to happen we would not lose it. We could still afford it with a low wage job. That 3rd refinance also got us another percentage and a half lower interest rate.

    We continued to make the same payment we had been making all along even though the new payment was much lower and are now back under the 6 year mark with the end in our sights. We took the difference in the payment and applied it directly to the principle. Now I do believe there were many that got into trouble using their equity in the wrong way. I never took more cash out of my home. I simply wanted to get the term down to the lowest number of years/interest rate with no penalty for an early payoff.

 

 
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