Posted on 05/15/2014 11:38:03 AM PDT by Lorianne
Yesterday we mocked China for being desperate enough to push its tumbling housing market (which directly and indirectly accounts for some 80% of Chinese GDP per SocGen estimates) no matter the cost, that at least 20 developers were offering the kinds of mortgages that resulted in the first credit bubble crack up boom and collapse, namely "Zero money down."
Little did we know that the US, never one to lag in the financial innovation department had once again one-upped China, by bringing back from the dead the company that according to Housing Wire was "once a poster child for pre-crash subprime lending" - Ditech Mortgage Corp.
Don't remember ditech? Then you certainly were not in the housing market during the peak bubble years last time around: ditech, which hasn’t been in the news in nearly five years, will also be developing co-branded and joint-ventures with financial institutions that want to offer mortgages. Supposedly, ditech is one of the better-known brands thanks to its heavy consumer advertising in the first half of the 2000s – remember the “Lost another loan to ditech!” ads?
(Excerpt) Read more at zerohedge.com ...
History repeating itself.
Don’t these idiots learn ANYTHING?
No, that's pretty much what defines an idiot.
here we go again, along with another round of infrastructure stimulus I guess
Love it!
If Janet Reno, under the direction of Bill Clinton, hadn't forced banks and lending institutions to invent sub-prime loans, the financial disaster of 2007 would never have occurred.
Shovel ready jobs to put Mexicans to work building houses for Chinese millionaires and nice new roads to coddle their new Beemers to and from their new software companies manned by H1Bs.
The agenda is economic destruction. They know this tactic works so they’ll do it again.
Why not go all the way, make it so those who previously went through foreclosure and or bankruptcy, would have no impact on their desire for another mortgage loan, zero down and zero qualifying, just walk in and say “Give Me A Loan”
Hey, it’s nearly FREE money! You can BUY things with it! YIPEEEE!
Who says they ever went away? What do you think HARP is?
Some lenders have the ability to lend under the HARP program to an UNLIMITED loan to value ratio. No matter how far the borrower is under water, if their address qualifies, they get the loan. This has been going on since 2009.
Not saying it’s right, just making the point that this is no big deal and should surprise no one.
OK we see this happening again.
How does the average FReeper become the next John Paulson or Mike Burry?
“Don’t you know? It was all those nasty banksters. You’ve got many people on this forum who believe that. I brought up the Community Reinvestment Act and all the shenanigans under the Clinton admin to these people, but they still want to believe it was all the fault of evil financiers. They did their share, but to blame them as the chief culprits is to put the cart before the horse.
If Janet Reno, under the direction of Bill Clinton, hadn’t forced banks and lending institutions to invent sub-prime loans, the financial disaster of 2007 would never have occurred.”
I love how this works. I was in the mortgage business for years. Back in Ohio, around 1996, I remember cities in Ohio passing laws that stated that lenders were not allowed to charge prepayment penalties to high risk borrowers, and that ALL sources of income had to be counted toward qualification. This included unemployment benefits, food stamps, and welfare. I remember several lenders getting sued in the Cleveland market for refusing to comply with this. They were sued by this little organization named ACORN. Lead counsel for ACORN in many of these suits was some guy named....you guessed it, Barack Hussein Obama. As it turns out, some years later this fella went on to sue those same lenders who were forced to make those loans for “predatory lending”. And, a new bureaucracy was formed under his direction (the CFPB) that made a bunch of rules governing how lenders were supposed to lend their money using the newly minted Qualified Mortgage rule.
Talk about a racket...
It’s not that I’m letting off bankers and other lenders for passing on or selling “toxic assets,” it’s just that they never would have been in the position to screw over people if not for the Clinton admin.
I see your point however I ask myself, when did the bankers ever let bought and paid for politicians tell them how to run their banking cartel?
never is the answer I get. So that tells me they are all in cahoots and the politicians are only given a little leeway to make them look responsible for ordering bankers around.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.