Do You Think That Banks Are Crooks?

[thaiturkey]

Can we keep to a discussion of banking and leave politics out of it, please? I know that the two are partners in crime and it's a subject worth airing but party political exchanges on BYC lead to thread closure and the original discussion being being stopped too.

Better to have some discussion than none.

 

[Stephanie739]

I agree the meltdown began when Bush was in office. That's a fact. But will you agree that he warned that it was coming?

I agree the meltdown began when Bush was in office. That's a fact. But will you agree that he warned that it was coming?

I watched the video Dennis, but the housing crisis isn't the only crisis he saw coming.

 

[hemet dennis]

I can't say how all the bad loan deals happened. I can only say that from my experience. A $150,000 loan was presented to me without a job or money, only the understanding that I would be opening a business soon after moving. I was told I could base the income question on my expectations of income in the future and it was reasonable to expect to be able to cover that loan according to him. I knew I couldn't cover that amount, and he did not seem at all interested in helping me obtain a $40,000 loan. He kind of made me feel that I would be able to get the $150,000 loan but not a $40,000. I walked away and found another funding source.

And if you had went for the $150,000 loan and didn't make the payments and got foreclosed on would it be the banks fault ?

 

[Stephanie739]

Can we keep to a discussion of banking and leave politics out of it, please? I know that the two are partners in crime and it's a subject worth airing but party political exchanges on BYC lead to thread closure and the original discussion being being stopped too.

Better to have some discussion than none.

I think I need to just stick to talking about chickens in this group.

 

[Stephanie739]

And if you had went for the $150,000 loan and didn't make the payments and got foreclosed on would it be the banks fault ?

No of course not. I already stated in my first post that some individual mortgage holders are very much to blame for their mess, but the system was fraudulent and the design allowed for fraudulent mortgages to be untraceable due to the splitting and resale. There is a bigger picture that people seem to miss. I know people were also told they would be able to refinance at a later date to keep the payments lower.

 

[RHRanch]

And if you had went for the $150,000 loan and didn't make the payments and got foreclosed on would it be the banks fault ?

So you are saying that the banks have no fault in this even if they approved loans to people they knew were not qualified?

 

[Stephanie739]

So you are saying that the banks have no fault in this even if they approved loans to people they knew were not qualified?

You are making my point. I believe these loans were pushed. Mortgage brokers made a lot of commission when they made a mortgage deal and banks allowed it to happen, even protected themselves by splitting the mortgages and reselling them. And then the cherry on top, cashing in the insurance policies purchased to cover the loans as they defaulted, paid for by TARP.

 

[thaiturkey]

I think I need to just stick to talking about chickens in this group.

I know how you feel. We need to master the art of the possible.

 

[thaiturkey]

You are making my point. I believe these loans were pushed. Mortgage brokers made a lot of commission when they made a mortgage deal and banks allowed it to happen, even protected themselves by splitting the mortgages and reselling them. And then the cherry on top, cashing in the insurance policies purchased to cover the loans as they defaulted, paid for by TARP.

Perhaps that was possible because of inadequate regulation?

 

[hemet dennis]

No of course not. I already stated in my first post that some individual mortgage holders are very much to blame for their mess, but the system was fraudulent and the design allowed for fraudulent mortgages to be untraceable due to the splitting and resale. There is a bigger picture that people seem to miss. I know people were also told they would be able to refinance at a later date to keep the payments lower.

So you are saying that the banks have no fault in this even if they approved loans to people they knew were not qualified?

Congressman Ron Paul, who serves on the United States House Committee on Financial Services, charged the CRA with "forcing banks to lend to people who normally would be rejected as bad credit risks

CRA=Community Reinvestment Act