Posted on 08/05/2005 11:39:24 AM PDT by Andy from Beaverton
No one would invest in a bad deal on purpose.
The owners of Freddie Mac are investors.
These types of loans probably make more money for the investors.
So if I go get some Muslim garb, and go apply with Freddy Mac, I'll get a no interest loan?! Where do I sign up? How do they verify that I'm not a Christian? Can we sue them for religious discrimination?!
Again, we're talking about the government.....the same geniuses who gave you Social Security and federal flood insurance. Think about it for a moment.
I've represented lenders who have given these "no-interest" mortgages to Muslims investment groups. Lenders love these transactions because once you run the numbers you realize that the bank makes more money off of this than they do off of a regular mortgage.
This IS a government bunch we're talking about here
Not really. Freddie Mac is run like a regular business, more or less. It is not a government agency. It's interested in turning a profit, and these Sharia-compliant deals are big money-makers.
you are correct.
The system is sure to be gamed, however.
I know about how these loans work.
The lender profits, trust me.
Basically. There are imams in the Gulf States that make a good living off of "blessing" these types of deals. For a fee, of course.
Why don't they just waive the credit and residency check, and give away everything to these "religious of peace".
These loans are open to anyone stupid enough to take them.
I don't care. We have a government/business alliance practicing special targeted treatment of a religious group. This is no different that all of the other social engineering conducted in the form of targeted taxes, targeted tax cuts & targeted laws.
Where is the ACLU and their usual church/state whining??
And this is the type of civilization the Islamists are trying to foist on the rest of the world - a world where there is no profit, no technology (not in the Koran, ya know) better than a camel's back, and no individual liberty.
By participating, isn't Freddie Mac approving of such a world? Isn't this directly contrary to what we're trying to do in Iraq? Develop a pluralistic society where none existed before?
I wonder sometimes what these people are using for a brain. It certainly isn't something capable of logic.
This is just a different type of lending instrument.
It has nothing to do with social engineering.
I am certain that this type of borrowing option is available to you.
And, Freddie Mac is NOT a Government agency, it's a private corporation.
Yup, Islamic Banking 101 ... needing to find Allah approved ways around the concept of the riba - which encompasses both usury and interest, makes for some interesting financial products :). The basic idea of Islamic banking is to spread cost / profit / loss around in a shared manner.
Although definitely not a very efficient instrument from classical capitalist POV :)
Anyone can take these loans, if they want. Most people have no interest in doing so as there are several disadvantages to structuring a mortgage this way (you don't get interest deductions on your taxes and the actual interest rate is higher than on a regular mortgage)
Where is the ACLU and their usual church/state whining??
This has nothing to do with the 1st Amendment nor the separation of church and state.
Correction: If Muslims decided that Allah or Mohammad didn't want them paying taxes, the ACLU would be all over the IRS.
"The act of engaging in criminal activity as a structured group is referred to in the U.S. as racketeering." = Wikipedia. Engaging in favoritistic kick backs of benefits based on membership in a class (in this case, Islam) is a crime. Replace "Islam" with "The Mafia" and you'll see what I am getting at. And of coure, Fannie Mae is in no way immune to prosecution if they are determined to be doing this, which appears to be the case.
"... the Muslim enters into a "lease with option to buy". You can be sure the intermediary is making a few bucks on each deal."
Yup. You'd have to be crazy to enter into a Rent-to-Own contract. Sort of like buying one of those tv's or Washer/Dryer units for people who can't get a credit card.
Someone who can't qualify for a mortgage or get a loan...can they get this, I wonder?
The US Government usually creates things that fall into The Law Of Unintended Consequences.
I believe it to be illegal.
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