Realty Check

Drive-by media not doing its job again, and not looking beneath the surface. The mortgage crisis was caused by Barney Frank (the Banking Queen), Chris Dodd, protecting FNMA and FHLMC and requiring, under pressure from ACORN, that Banks loan to diverse groups. Talk to any Bank Compliance Officer about these types of federal rules. The states that have the biggest problem, Florida, California, Arizona, and Nevada are also safe havens for illegal immigrants, who took out a number of these “no-doc” and “zero down” mortgages. The politicians are still unapologetic, and want to throw more money at people who are poor at managing their affairs. With all the talk about Ponzi schemes (Madeoff) let’s look into the biggest Ponzi of them all, the federal government’s unsustainable future obligations. If it was an insurance company, the federal government would be shut down due to lack of reserves and actuarial unsoundness.

You neocons can try mightily to blame this on Democrats, ACORN, or whoever else sounds good this week. No government pressure forced any banks to loan anyone any money, period. It was actually the Bush administration that started this with its spend, spend, spend and cut taxes, cut taxes, cut taxes approach to government. Well guess what, you have to have money coming in on one end to spend it on the other, gee what an idea! Republican greed got us in this mess, so learn to live with the facts and not some fantasyland right wing BS.

I distinctly remember the news articles at the time as various special interest groups pressured the banks to make risky loans. Any banks that didn't comply were accused of discrimination.

Yeah, the banks were definitely greedy. All thanks to W's stay-rich-at-all-costs economic policies. And don't forget all those rich real estate investors who bit off more than they could chew. They bought and bought and bought houses they couldn't even live in, let alone afford to keep. And tried to flip them. Look where that has us now.

Thank goodness Barack is here.

Spread the blame around - government greed, banking industry greed, personal greed. The mess we are in today has its roots in many places. But what about the individual's responsibility to educate himself or herself before making financial decisions and commitments? I am no fan of the government, nor the financial sector, but I am sick of the excuse that someone just didn't know any better.

Greed and irresponsibility all around, on all fronts.

Colonel Rebel, this article was written expressly for people like you. Step away from the Kool-Aid and educate yourself.

The homeowner, no matter how much it seems they can't afford the house, is not to blame in my opinion. The supposed EXPERTS are the bankers. The are the one's who qualify those applying for loans. Until financial education is part of the public school system, then the public is not to blame. Most people have no clue how to handle their money and it is because they are not taught! It is left up to their parents to teach them, when most times, the parents don't know either! When Suze Orman becomes part of the classroom cirriculum, THEN we can blame both sides. Until then, I place the blame squarely on those who are SUPPOSED to know and have been TREAINED and EDUCATED on handling money!

Yes and No.

The USA was considered the most fortunate country in the world due to the large number of real estate lending 'instruments' available to both homeowners & investors.

Indeed, in one of his epic works, entitled MAVERICK REAL ESTATE FINANCING, Steve Bergsman, a nationally recognized financial and real estate writer claims as much

BUT once banks began seriously leveraging their lending by way of no-doc loans, etc., racial, ethnic, social and even age discrimination were potential backlashes for banks that then did not make similar loans available to all who THEN met the guidelines, which it seemed were not worried about any bubble bursting -- WHAT BUBBLE.

All share in this disaster, which will not likely recur in our lifetimes.

Let's say a bank opened all its vaults and safety-deposit boxes, disabled all its security cameras, fired or blindfolded all its armed guards, and flung open its doors while offering warm doughnuts to the first few million visitors. And was quite open--aggressive, even--about promoting its friendly ways and, ah, largesse. And eventually, as you'd expect, criminals came in and helped themselves to all the money, deposits, jewelry, and doughnuts.

Of this uou can be certain: customers wouldn't be complaining about what dreadful, irresponsible people those robbers were--oh no! They'd be calling for the heads of every single bank employee who orchestrated, or had a hand in, the ridiculous ease with which the robbers could come in and take everything. Q.E.D.

Vicki, I served as an officer of a national mortgage bank than was licensed in 46 states (there are a few not worth the effort i.e. North Dakota). We were under reserved and therefore very tight on criteria. Our foreclosure rate was among the lowest in the nation. Guess who got investigated for discrimination. The fines wiped out our reserves and our licensed was revoked by a major east coast state despite the fact we never had a discrimination complaint from a borrower and no offensive behavior was ever alleged. The evidence was "outcome based". All states require fines be reported at or before renewal. Within 18 months we were out of business for doing exactly what you say all banks should do. Col. Reb. is spot on. You need to dig a bit.

Vicki, I served as an officer of a national mortgage bank than was licensed in 46 states (there are a few not worth the effort i.e. North Dakota). We were under reserved and therefore very tight on criteria. Our foreclosure rate was among the lowest in the nation. Guess who got investigated for discrimination. The fines wiped out our reserves and our licensed was revoked by a major east coast state despite the fact we never had a discrimination complaint from a borrower and no offensive behavior was ever alleged. The evidence was "outcome based". All states require fines be reported at or before renewal. Within 18 months we were out of business for doing exactly what you say all banks should do. Col. Reb. is spot on. You need to dig a bit.

Vicki, I served as an officer of a national mortgage bank than was licensed in 46 states (there are a few not worth the effort i.e. North Dakota). We were under reserved and therefore very tight on criteria. Our foreclosure rate was among the lowest in the nation. Guess who got investigated for discrimination. The fines wiped out our reserves and our licensed was revoked by a major east coast state despite the fact we never had a discrimination complaint from a borrower and no offensive behavior was ever alleged. The evidence was "outcome based". All states require fines be reported at or before renewal. Within 18 months we were out of business for doing exactly what you say all banks should do. Col. Reb. is spot on. You need to dig a bit.

E. Zach:
Give me the name of the institution and I will gladly dig deeper and report back in this space.

I was always taught that if you can't
afford it; it's not for you. What ever happened to personal responsibility and really investigating before signing your name on the dotted line?

Most people want at least a chance to realize a dream. It's hard for many to resist an opportunity to own a dream home when it is presented by professionals who can be very convincing in their support. There is the American creed of "use other peoples money" to get what you want. And again, there is always a chance that it might work.

E. Zach:
If I am understanding you correctly, the mortgage bank you worked for was penalized for doing it's job when lending money to home buyers that could afford to pay their loan back keeping the bank solvent. But then the powers that be changed the rules and began placing fines on the bank for not taking more of a risk and lend money to low wage earners in order say the bank are not discriminating agains the poor.

High wage earners qualify for loans and low wage earners don't. The scale is tipping because low wage earners were paying rents that were as high as a house payment. The difference between renting a house and buying a house is you have property taxes and insurance to pay as well as up keep of your property, throw in high gasoline ($4.00's a gallon with long commutes) food and utilities, of course they couldn't make the payment on their mortgage. All of these things factor in when applying for the loan. Once the gas went up to unreasonable prices is when everything began to reach its tipping point.

blame we have made a wrong judgement.we never know it was so bad,it would become so bad so never give up whenever there is chance to save go for it never be a quiter to all moms.we chinese always say rice has become porridge we cannot change it so the next time add less water.

I would like to thank President Chenney and his dimwitted sidekick Dumbya for destroying the economy and allowing their backers steal our GNP.

E. Zach,
You claim you were put out of business for not loaning money to Blacks (or enough blacks) and the reason you didn't do this is because all Blacks are low wage earners? Maybe if you had pulled your head out of Rush's b_tt long enough to find Blacks like me, my family and all my friends who have household incomes of over $250k, you'd still be in business!

Do you know that Trump organization and partner Irongate developer started a Trump-Baja Resort in Rosarito, took lot of money from the purchaser of the condos and continued taking money from them until June of 2008 and abandoned the project in Dec,08. Every one is very angry at their scam. Look into this more on Sandiego Business Journal. I can not believe that every one bought the condo because of the Trump and now they have lost all the deposit. What a another Ponzi scheam like Madoff.