They were redlined because their credit history and risk was bad news. None of these stories ever mentions that. It's always the racial discrimination angle!
Everybody needs some skin in the game. Everybody needs to put 20 % for the down payment. Only an idiot buys an adjustable rate mortgage.
IIRC, Rush made these comments on Tuesday, May 10, 2011. There are some other commentaries at the source from Rush's "Stack of Stuff."
>> Everybody needs to put 20 % for the down payment.
If that were mandatory, there would have been no housing catastrophe.
Their stupid is so extreme that it feels like a nefarious plan to destroy middle America.
This stupidity by the DOJ is unreal. There is no constitutional right to a sub-prime mortgage. Some people, many people today, just don’t have the steady income needed to make the payments on a mortgage year after year. Those people have to rent. End of story. Forcing banks to lend to people who don’t have steady reliable income and a good credit score is just going to put us back in a bigger mess than we were in two years ago.
The federal government just needs to go cold turkey and completely stop trying to pump up and prop up the housing market. It’s futile and costly to the Treasury and the taxpayers. They need to just let the housing market drop until prices stabilize and home buyers believe the risk of a significant price decline is gone. Only then will the housing market make a real sustained recovery.
Dear God!
We always hear that if we don’t learn from our history we are doomed to repeat it, but this is nuts! This is exactly what helped sink the banks, and it happened like, yesterday.
IIRC reading an article about a year, maybe more than a year ago the Subprime Mortgages, the assaults on the Mortgage Industry actually never ceased even during the hooplah over the housing bubble bursting. The CRA was never rescinded, and the “Community Organizers” continued unabated throughout that period of time, and to this day.
I’d say Rush is probably pointing out a newly conceived Community Mortgage Aggressor more than a restart of the ongoing, existing Leftist/minority assault on the mortgage industry.
Just like our POTUS the Left is using minorities as shields to gain their ground in this war.
“And this group, the name of the group, the St. Louis Equal Housing and Community Reinvestment Alliance. What do you bet that’s just ACORN under a new name?”
Why, of course! See here: http://slehcra.wordpress.com/contact-us/
Bottom right of page it says:
Member Organizations
* ACORN St. Louis
So there you have it!
20% down required would screw everyone who already owns a home. People who DID put 20% down would be upside down due to the resulting drop in values (due to far reduced demand).
10% is a reasonable compromise IMHO. Still some skin in the game (and IIRC, historically, defaults drop way off at the 10% equity level).
Regardless, why is nobody stating the obvious - they’re not being turned down for loans because they’re **insert protected minority group here**, it’s because they DON’T PAY THEIR DAMN BILLS!
Somehow I don’t think a guy like Herman Cain would have trouble getting a mortgage.
Obama: I know what will fix the economy! ANOTHER HOUSING BUBBLE! Who cares what happens in 10 years, I won’t be president anymore!
Lather. Rinse. Repeat.
I bet that obama and friends have no understanding of the what the subprime is all about. They just think that it is all the man making money off the poor.