The consequence of lax regulation in the housing market
gnice123
2011/12/02 15:33:46
"One memory particularly troubles Theckston. He says that some account
executives earned a commission seven times higher from subprime loans,
rather than prime mortgages. So they looked for less savvy borrowers —
those with less education, without previous mortgage experience, or
without fluent English — and nudged them toward subprime loans.
executives earned a commission seven times higher from subprime loans,
rather than prime mortgages. So they looked for less savvy borrowers —
those with less education, without previous mortgage experience, or
without fluent English — and nudged them toward subprime loans.
These less savvy borrowers were disproportionately blacks and Latinos,
he said, and they ended up paying a higher rate so that they were more
likely to lose their homes. Senior executives seemed aware of this
racial mismatch, he recalled, and frantically tried to cover it up."
Taken from:
http://www.nytimes.com/2011/12/01/opinion/kristof-a-banker-sp...
Before any of you teabagging morons say it, Chase Home Finance Regional VP James Theckston is clearly NOT part of the vast "left wing conspiracy" you are dumb enough to believe exists.
Greg P.
Top Opinion
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charlotte kavanagh 2011/12/02 16:05:40
"Fannie and Freddie spewed out $1 trillion worth (face value) of subprime mortgages between 2005 and 2007." (US NEWS)
http://www.usnews.com/opinion...
Unfortunately there are those who will always blindly believe that everything a business does is a good thing. That they can do no wrong.
They will blame government for all problems forgetting that our country is great because of our government. Thomas Jefferson and Ben Franklin are our heroes not John Rockafeller.
While they are correct in some respects that government contributed to this issue, through the allowance of less regulation etc., they fail to admit that the overbearing influence of business on our government is the true cause of this.
Greg P.
http://www.law.fsu.edu/journa...
Congress saw fit to end the practice of "red-lining" areas that were unfit to lend money to. While the Fed was complicit in this as well. Financial institutions were threatened that their ability to borrow over night funds, if there balance sheets didn't include areas that were formerly red-lined.
So you can blame lack of regulation all you want, but it is a government caused issue and you cannot blame the financial institutions for profiting from unintended consequences of what dullards in Washington propose.
I'd also like to add that the problem during the Bush years wasn't the absence of regulation it was the absence of the ENFORCEMENT of those regulations.
Greg P.
www.zimbio.com/Freddie+Mac/ar...
http://youtu.be/63siCHvuGFg
G.W. Bush tried 17 times to increase regulation on Fannie and Feddie but was blocked every time...(US NEWS)
"Fannie and Freddie spewed out $1 trillion worth (face value) of subprime mortgages between 2005 and 2007." (US NEWS)
http://www.usnews.com/opinion...