Mortgages to Come With Equity Lines Attached [muslim mortgages mentioned]

Washington Post ^ | Saturday, July 27, 2002 | Kenneth R. Harney

[palmer]

Still another concept American home buyers might see in the months ahead: a major move toward customizing loans aimed at new immigrants and minority renters. Spurred by President Bush's pledge to turn 5.5 million African American, Hispanic and immigrant households into homeowners during this decade, mortgage companies and banks are rolling out "cross-cultural" lending campaigns designed to accept nontraditional credit standards for mortgage approvals.

Freddie Mac offers a special two-part home loan tailored to meet the religious dictates of Islam for Muslim borrowers who are prohibited from paying interest

[palmer]

This is just an excerpt. They have no details on how Islamic "no interest" mortgages work.

[hsmomx3]

How can these new (or illegal!) immigrants afford a mortgage? I'd like to see a mortgage specially designed for me based on our income-ha!

[Shermy]

Just more subsidies for the real estate industry.

[Squawk 8888]

I read about it a few years ago- it goes through lots of legal hoops to disguise the interest as other items, but in the end it's the same thing.

[palmer]

Maybe you can emigrate and then illegally immigrate

[steveo]

meet the religious dictates of Islam for Muslim borrowers who are prohibited from paying interest

What investors do they think are going to purchase these mortgages?

[AngryJawa]

Just great. More multicultural BS. Guess who'll pay for this wonderful idea?

Fist through monitor in 3...2..1...

[palmer]

Most funds will buy the mortgages in the form of Freddie Mac corporate debt.

[INSENSITIVE GUY]

This is bad news.Don't we have enough people in this country who damage property and don't pay their rent!

[Black Agnes]

The divisiveness just keeps on and keeps on and keeps on. If they want to have their culture it's still in their former country. Now *I* have to pay to bring their culture *here*. What joy, What bliss. Karl Marx would be proud! Divide and then the great workers revolution can happen on its own!

[palmer]

Better yet, start your own religion in which you don't have to pay interest or principal.

[Black Agnes]

Nah, I think I'm gonna change my last name to Martinez and see if I can qualify for one of these...

[white trash redneck]

Freddie Mac offers a special two-part home loan tailored to meet the religious dictates of Islam for Muslim borrowers who are prohibited from paying interest

Hmmm. So if my religion prohibits me from paying more than $.50/gallon for gasoline, the government will devise a program for me?

;-)

Actually, I think that Muslims are forbidden from charging interest. As for killing Jews, well that's an entirely different story.

[07055]

The program will aggressively "reach out to people who normally think they couldn't qualify" for a mortgage to buy a house, Nettles says. It will recognize nonstandard income sources -- part-time jobs, cash-payment jobs and employee assistance.

So, what happens when it turns out that the people they are "reaching out" to, can't pay their mortgage?

Uncle Sugar to the rescue.

[palmer]

Uncle Sugar to the rescue.

Seems inevitable, although rising rates and falling prices will get all of us in the meantime.

[Black Agnes]

What I take out of this ultimately is that real estate really *is* the last bubble and they're trying *desperately* to keep it afloat.

[palmer]

You are probably right. And clever of them to do it multiculturally.

[PBRSTREETGANG]

Most funds will buy the mortgages in the form of Freddie Mac corporate debt.

Fannie Mae? Freddie Mac? They'll have to set up a new designation for these Muslim mortgages.

Fadi Malik?

[PBRSTREETGANG]

What I take out of this ultimately is that real estate really *is* the last bubble and they're trying *desperately* to keep it afloat.

Well, diversity is the "strength" of our bubble anyway.