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Mortgage Lenders Still Aren't Lending...GOOD!

Discussion in 'Political Discussion' started by PatriotsReign, Dec 7, 2009.

  1. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    I can't believe CNNMoney has an article COMPLAINING that mortgage lenders haven't eased restrictions (aka - Qualifications)! Are you kidding?!!! We don't want them to lend unless they are CERTAIN an applicant is qualified.

    This is what eff'd up the real estate sector and sent the economy into a tailspin and these bozo's are complaining? I honestly wish they would go back to their old, conservative ways of not allowing ANYONE to buy a home unless they qualify AND have a 20% down payment!

    As it stands today, you can still get a mortgage with as little as 3% down. That is what we should be complaining about.

    "Not exactly. The latest Federal Reserve survey of senior bank loan officers in October finds mortgage lenders are still plenty grumpy. Just 3.6% of lenders reported they had they had eased their mortgage qualifying standards “somewhat” over the past three months. WTF? Do NOT ease standards....PAH-LEEZ!! But that was more than wiped out by the 25% who said they had tightened their standards. That said, the 25% who recently tightened are well below the record 75% who reported tightening in July 2008. But what we’re not seeing is any meaningful easing."

    Has everyone taken stupid pills since the recession began? All of us should be urging our gov't officials to force the lending industry to make it more difficult to qualify for a mortgage.

    Maybe Barney Frank will stand before the nation once again a proclaim "Everyone should be able to buy a home of their own"

    No BARNEY, they shouldn't!

    http://moneyfeatures.blogs.money.cnn.com/2009/12/07/mortgage-lenders-still-arent-lending/
     
    Last edited: Dec 7, 2009
  2. Real World

    Real World Moderator Staff Member

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    I'm mixed about lending regs, but I am not about what I personally think is best, and that's tough standards. My "mixed" point is about whether or not someone should tell person A, what he can or cannot do with his money, if he wants to lend it to person B. This is a general sentiment I hold of course. I understand that it's a lot more complicated that though. Anyway, only people who can afford to pay it back, should get a loan.

    I do like the down payment. Were I lending, I'd want that. Collateral is important with such a large loan like a mortgage. If a prospective buyer stands to loose $10k, $50k, or say $100k of their own money, they are less likely to make an irresponsible buy, as they would stand something to lose, outside of credit.
     
  3. alvinnf

    alvinnf In the Starting Line-Up

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    3% down is the new 20% down of old. I think in comparison to the ease of which people were able to qualify for junk loans. 3% with tight credit and available reserve funds certainly should do the trick for now. What we don't want to do is make attaining a loan impossible, we unfortunately still need for the housing market to turn around. That means we need buyers and sellers and we need to move some volume to turn this thing around. With the lack of liquidity and reliance on creditor debt, most individuals will probably struggle to meet these standards anytime soon. At least we are heading in the right direction by tightening up requirements.
     
  4. Wolfpack

    Wolfpack Banned

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    Don't worry. It is just a matter of time before the government discovers they are disproportionately giving out loans to people that actually have, like, money and jobs. Then they will force mortgage companies to give more loans to poor people and minorties.

    Certainly I cannot imagine anything that may possibly go wrong with such a governmental mandate, can you?
     
  5. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    Turning around the housing market is more about pricing than it is lending standards. Prices are still too high, especially in the eastern Massachusetts market. Another 10% would be a good, solid bottom.
     
  6. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    Talk to Barney Frank. He thinks everyone should own a home of their own.:rolleyes:
     
  7. Real World

    Real World Moderator Staff Member

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    Saw this today.


    President Obama to urge banks to lend more

    President Barack Obama walks into a room before presenting his new jobs plan on Tuesday. He will meet with bank CEOs next week to urge them to lend more money.

    POLITICO 44 - President Barack Obama will meet with chief executives of major banks on Monday and is expected to urge them face-to-face to lend more money to help promote economic recovery, banking sources tell POLITICO.


    A source familiar with the planning said invitations went out to CEOs last weekend for what will be a morning session at the White House.


    The CEOs expect to hear from the president about why banks ought to be lending more, why they shouldn’t oppose his financial reform initiatives, and why they ought to hold the line on bonuses and compensation, the sources said.
     
  8. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    "If" Obama does that, he will officially transform himself from sitting US president to standing fool.

    NONE of the above is either the right thing to do, or the smart thing to do. Banks MUST hold fast to tight lending standards. What got us into this mess is lax lending standards...particularly in the housing sector.

    This is getting ridiculous!
     

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