Foreclosure rates surge, biggest jump in 5 years!

[SultanOfSwing]

We all know the primary reason of economic downturn in the US today is the continuous high number of foreclosure and the main reason is the subprime rate that bank offered. People with bad or no credit, no down payment and low income buyers were able to loan a house without verifying if they’re really qualified to buy one. I remember banks were offered on what we called a teaser rate of 1% interest only and after a year, the rate jumps into 10%+ in which they can’t afford to pay their mortgage and just abandoned their houses. Government is finger pointing who’s to blame on this so called subprime lending. My question is who do you think to blame on all of this mess?

http://news.yahoo.com/s/ap/20100415/ap_ ... sure_rates

[Don]

We all know the primary reason of economic downturn in the US today is the continuous high number of foreclosure and the main reason is the subprime rate that bank offered. People with bad or no credit, no down payment and low income buyers were able to loan a house without verifying if they’re really qualified to buy one. I remember banks were offered on what we called a teaser rate of 1% interest only and after a year, the rate jumps into 10%+ in which they can’t afford to pay their mortgage and just abandoned their houses. Government is finger pointing who’s to blame on this so called subprime lending. My question is who do you think to blame on all of this mess?

http://news.yahoo.com/s/ap/20100415/ap_ ... sure_rates

You answered your own question. It's obviously Perry's fault.

[Everett]

We all know the primary reason of economic downturn in the US today is the continuous high number of foreclosure and the main reason is the subprime rate that bank offered. People with bad or no credit, no down payment and low income buyers were able to loan a house without verifying if they’re really qualified to buy one. I remember banks were offered on what we called a teaser rate of 1% interest only and after a year, the rate jumps into 10%+ in which they can’t afford to pay their mortgage and just abandoned their houses. Government is finger pointing who’s to blame on this so called subprime lending. My question is who do you think to blame on all of this mess?

http://news.yahoo.com/s/ap/20100415/ap_ ... sure_rates

You answered your own question. It's obviously neal's fault.

Fixed it for ya

[Lula]

i don't think you can blame one person as it was a spiral. the deregulation was not a good idea. the pradatory lenders were bad. people should never have gotten into mortgages they could not afford to begin with. I place most of the blame with the time bush was in office as it seems the pedal really hit the metal for a complete divide and insanity. the crazy hedgefund money making formula and blah blah blah. gotta get back to work .

[Michigan Girl]

Jimmy Carter would like to share the blame w/Clinton ...thank you!!

BTW~Dixie Carter died!! Where are all you thread starters?!?! Class act, that woman!! RIP!!

[SultanOfSwing]

i don't think you can blame one person as it was a spiral. the deregulation was not a good idea. the pradatory lenders were bad. people should never have gotten into mortgages they could not afford to begin with. I place most of the blame with the time bush was in office as it seems the pedal really hit the metal for a complete divide and insanity. the crazy hedgefund money making formula and blah blah blah. gotta get back to work .

I would say, I'll blame it on both Clinton and Bush administration. I remember when I bought my first house in the early 90's (Clinton administration) I had sub-prime rate at that time. But it's hard to qualify to buy a house at that time and they check everything, credit, income and length of employment. Sub-prime continously offered until Bush, but this time it's easy to qualified. So it started with Clinton and ended up in Bush administration. But also Congress has complete control of all government regulations. And blamed it on lobbyst too.

[Michigan Girl]

i don't think you can blame one person as it was a spiral. the deregulation was not a good idea. the pradatory lenders were bad. people should never have gotten into mortgages they could not afford to begin with. I place most of the blame with the time bush was in office as it seems the pedal really hit the metal for a complete divide and insanity. the crazy hedgefund money making formula and blah blah blah. gotta get back to work .

I would say, I'll blame it on both Clinton and Bush administration. I remember when I bought my first house in the early 90's (Clinton administration) I had sub-prime rate at that time. But it's hard to qualify to buy a house at that time and they check everything, credit, income and length of employment. Sub-prime continously offered until Bush, but this time it's easy to qualified. So it started with Clinton and ended up in Bush administration. But also Congress has complete control of all government regulations. And blamed it on lobbyst too.

You're wrong/incorrect ...Carter started it, affirmative action~Clinton made it worse!!! Bush tried to stop FHLMC and FNMA in '03...Congress stopped Bush!!!

[7 Wishes]

Michigan Girl, you're grossly misinformed.

The first attempt to repeal Glass-Stegall was approved 54-44, along party lines, by Congress, in 1999. The GOP used their powers of reconciliation and cornered the Democrats into passing it the second time it was introduced, later that year - in the House and in Congress. Clinton had no choice but to sign off on it.

Bush did no such thing. He was the master of all degregulators. Attempts to reintroduce legislation to regulate the housing market in the past decade were soundly defeated by Republicans...and then the inevitable wave of foreclosures began as Bush's second recession kicked in.

Without regulation...well, you see what happened to the housing market and the banking sector. Greedy, late-middle-aged, conservative white men tend to have a disregard for convention and the law, because all they truly care about is getting theirs, no matter what the cost.

[S2M]

If CON is the opposite of PRO....

What's the opposite of PROGRESS?

OH, that would be CONGRESS...LOL

[Ehwmatt]

Michigan Girl, you're grossly misinformed.

The first attempt to repeal Glass-Stegall was approved 54-44, along party lines, by Congress, in 1999. The GOP used their powers of reconciliation and cornered the Democrats into passing it the second time it was introduced, later that year - in the House and in Congress. Clinton had no choice but to sign off on it.

Bush did no such thing. He was the master of all degregulators.

Right, Bush was too dumb to even spell his own name according to you people, yet he single-handedly and nefariously masterminded the collapse of:

1) The banking industry
2) The housing industry
3) The auto industry
4) The financial/Wall street sector
5) New Orleans by casting a Biblical hurricane upon the blacks that live there
6) The Twin Towers by sanctioning 9/11

You people can't have it both ways

[Michigan Girl]

Michigan Girl, you're grossly misinformed.

The first attempt to repeal Glass-Stegall was approved 54-44, along party lines, by Congress, in 1999. The GOP used their powers of reconciliation and cornered the Democrats into passing it the second time it was introduced, later that year - in the House and in Congress. Clinton had no choice but to sign off on it.

Bush did no such thing. He was the master of all degregulators. Attempts to reintroduce legislation to regulate the housing market in the past decade were soundly defeated by Republicans...and then the inevitable wave of foreclosures began as Bush's second recession kicked in.

Without regulation...well, you see what happened to the housing market and the banking sector. Greedy, late-middle-aged, conservative white men tend to have a disregard for convention and the law, because all they truly care about is getting theirs, no matter what the cost.

Sorry, 7... I stand as stated, been in the business my entire career~ not that it makes me a master, we just watched
it progress or did I just imagine Clinton pushing HARD for rule changes requiring lenders to make questionable loans.

[Michigan Girl]

Michigan Girl, you're grossly misinformed. He was the master of all degregulators. Attempts to reintroduce legislation to regulate the housing market in the past decade were soundly defeated by Republicans...and then the inevitable wave of foreclosures began as Bush's second recession kicked in.

Yeah, well a gamblers problems don't start when they've lost their home, job and family ...they started Loooong before that!!

Of course there are factors other than the three C's, I just gave a quick summation!! Sorta like you all skipping straight to
Bush because he happened to be in the right place at the right time!!

[7 Wishes]

Clinton himself has said that the repeal was his worst political blunder in his two terms (excepting the Lewinsky scandal, one would assume), and he bears his share of the blame. But it was a measure spearheaded by the GOP, and Bush was fully supportive of legislation that further degregulated the industry.

To say that Bush did anything to attempt to stem the tide is ludicrous, and has already been thoroughly disproven on multiple occasions on this thread. And the Dems didn't regain control of House and Congress until 2006.

[Michigan Girl]

So you're saying that this may never have happened?!?!

WASHINGTON, Sept. 10— The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.

Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.

The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.

[steveo777]

Too many NINJA and liars loans with adjustable rates. When you have 19 year old pizza delivery boys suddenly making $250,000 per year selling mortgages, right there everyone shoulda known something wasn't right. My son was one of those kids who went from making $2000 per month as a personal trainer to $25,000 per month. Fortunately, he saw the end coming and got on with a real bank, instead of a mortgage broker. The gravy train, however, is over.

[Michigan Girl]

Too many NINJA and liars loans with adjustable rates. When you have 19 year old pizza delivery boys suddenly making $250,000 per year selling mortgages, right there everyone shoulda known something wasn't right. My son was one of those kids who went from making $2000 per month as a personal trainer to $25,000 per month. Fortunately, he saw the end coming and got on with a real bank, instead of a mortgage broker. The gravy train, however, is over.

Lowering the standards so every American can own a home is what ended the gravy train!! Bush didn't do that!!

[7 Wishes]

From his radio address in 2002:

"The single greatest hurdle to first time homeownership is a high down payment requirement that can put a home out of reach. So my administration is proposing the American Dream Down Payment Fund. When a low-income family is qualified to buy a home, but comes up short on the down payment, the American Dream Down Payment Fund will help provide the needed funds. We estimate that this fund will open the door to homeownership for 40,000 low-income families annually."

http://www.youtube.com/watch?v=MqR15H0gNBU

http://www.nytimes.com/2008/09/20/business/20prexy.html

http://www.nytimes.com/2008/12/21/business/21admin.html?pagewanted=all

Owned.

Eight years after arriving in Washington vowing to spread the dream of homeownership, Mr. Bush is leaving office, as he himself said recently, “faced with the prospect of a global meltdown” with roots in the housing sector he so ardently championed.

There are plenty of culprits, like lenders who peddled easy credit, consumers who took on mortgages they could not afford and Wall Street chieftains who loaded up on mortgage-backed securities without regard to the risk.

But the story of how we got here is partly one of Mr. Bush’s own making, according to a review of his tenure that included interviews with dozens of current and former administration officials.

From his earliest days in office, Mr. Bush paired his belief that Americans do best when they own their own home with his conviction that markets do best when let alone.

He pushed hard to expand homeownership, especially among minorities, an initiative that dovetailed with his ambition to expand the Republican tent — and with the business interests of some of his biggest donors. But his housing policies and hands-off approach to regulation encouraged lax lending standards.

http://www.nytimes.com/2008/12/21/busin ... wanted=all

[7 Wishes]

Lowering the standards so every American can own a home is what ended the gravy train!! Bush didn't do that!!

Yes, he did, actually. See above.

[The_Noble_Cause]

Sultan, I would add the option of Greenspan's Fed Reserve to the poll.

[SultanOfSwing]

You're wrong/incorrect ...Carter started it, affirmative action~Clinton made it worse!!! Bush tried to stop FHLMC and FNMA in '03...Congress stopped Bush!!!

I believe subprime lending initiated in 1993 during Clinton's first year in office but it was passed in the US House of Representative by Republican controlled congress. These congressmen held their position during Reagan-Bush administration, and after Bush Sr. lost in his re-election because of his famous "read my lips, no more tax" crap plus his involvement in the first gulf war, lost to Clinton. I remember when I bought my first house in '94, not too many people buying houses because of recession. As I mentioned, me and my wife had a hard time to qualify in spite of having a good credit plus 10% downpayment, still they required us to get a co-signer.

So subprime was already active at the time Clinton was in office and became worse until George W. Bush's presidency. In spite of Bush being partly blamed I gave him credit when he signed a bill to help million of Americans who were unable to pay their high interest mortgages because of subprime crisis or modified their loans. Plus he also signed a tax relief bill to help homeowners who lost their homes from foreclosure and not to pay more taxes.

[Michigan Girl]

Sultan, I would add the option of Greenspan's Fed Reserve to the poll.

Excellent idea!!

[Michigan Girl]

You're wrong/incorrect ...Carter started it, affirmative action~Clinton made it worse!!! Bush tried to stop FHLMC and FNMA in '03...Congress stopped Bush!!!

I believe subprime lending initiated in 1993 during Clinton's first year in office but it was passed in the US House of Representative by Republican controlled congress. These congressmen held their position during Reagan-Bush administration, and after Bush Sr. lost in his re-election because of his famous "read my lips, no more tax" crap plus his involvement in the first gulf war, lost to Clinton. I remember when I bought my first house in '94, not too many people buying houses because of recession. As I mentioned, me and my wife had a hard time to qualify in spite of having a good credit plus 10% downpayment, still they required us to get a co-signer.

So subprime was already active at the time Clinton was in office and became worse until George W. Bush's presidency. In spite of Bush being partly blamed I gave him credit when he signed a bill to help million of Americans who were unable to pay their high interest mortgages because of subprime crisis or modified their loans. Plus he also signed a tax relief bill to help homeowners who lost their homes from foreclosure and not to pay more taxes.

But it DIDN'T start w/Bush and neither did affirmative action, 7!!!
You have to start where the problem started, everything else was fuel added to the fire instead of putting it out...
Nothing will change until public policy moves away from the assumptions that homeownership is a right and that banks have an obligation to loan money for that purpose.

[SultanOfSwing]

Sultan, I would add the option of Greenspan's Fed Reserve to the poll.

I agree, he's the guy who controlled the interest rate if it's going up or down, and most of the time suggested to make it much lower, and investors fueled more this evil subprime lending. And the result after all these housing hype, bubble housing.

[Michigan Girl]

You Kanye West's blaming BUSH for starting this cycle of horrible events are insane!!
I hope I'm around in a 20 whatever when this health care reform goes to shit ...you know who will
take the blame for that?!?! NOT OBAMA!!

[Michigan Girl]

You're wrong/incorrect ...Carter started it, affirmative action~Clinton made it worse!!! Bush tried to stop FHLMC and FNMA in '03...Congress stopped Bush!!!

I believe subprime lending initiated in 1993 during Clinton's first year in office but it was passed in the US House of Representative by Republican controlled congress. These congressmen held their position during Reagan-Bush administration, and after Bush Sr. lost in his re-election because of his famous "read my lips, no more tax" crap plus his involvement in the first gulf war, lost to Clinton. I remember when I bought my first house in '94, not too many people buying houses because of recession. As I mentioned, me and my wife had a hard time to qualify in spite of having a good credit plus 10% downpayment, still they required us to get a co-signer.

So subprime was already active at the time Clinton was in office and became worse until George W. Bush's presidency. In spite of Bush being partly blamed I gave him credit when he signed a bill to help million of Americans who were unable to pay their high interest mortgages because of subprime crisis or modified their loans. Plus he also signed a tax relief bill to help homeowners who lost their homes from foreclosure and not to pay more taxes.

But this does sound reasonable!! ^^^meant to be added above!!:wink:

To hear today's Democrats, you'd think all this started in the last couple years. But the crisis began much earlier. The Carter-era Community Reinvestment Act forced banks to lend to uncreditworthy borrowers, mostly in minority areas.

Age-old standards of banking prudence got thrown out the window. In their place came harsh new regulations requiring banks not only to lend to uncreditworthy borrowers, but to do so on the basis of race.

These well-intended rules were supercharged in the early 1990s by President Clinton. Despite warnings from GOP members of Congress in 1992, Clinton pushed extensive changes to the rules requiring lenders to make questionable loans.


Finally found an article ...how do you do it, FF?!?!
Carter ...
The Community Reinvestment Act (CRA) – a Carter-era policy that requires federal financial supervisory agencies to encourage banks to grant loans to people with low income and little credit – played a major role in sparking the sub-prime mortgage crisis the nation now faces, according to economist Russell Roberts, who spoke at a forum on the issue Thursday at the Hudson Institute.

“I see the [current financial] mess as an example of the government’s attempt to engineer housing outcomes,” said Roberts, an economics professor at George Mason University. “People spend other people’s money much less carefully than they spend their own.
http://www.cnsnews.com/public/Content/A ... rcid=38135

Then we have Clinton ...
The report talks about the Clinton administration’s National Homeownership Strategy, citing President Clinton’s directive to “lift America’s homeownership rate to an all-time high by the end of the century.”

The Clinton strategy further said that Freddie and Fannie should reduce down-payment requirements and, according to the report, “called for increased use of ‘flexible underwriting criteria,’ which it said could be achieved in concert with ‘liberalized affordable housing underwriting criteria.’”

“That is the perfect smoking gun that tells how Barney Frank [D-Mass.], the Clinton administration and others would do it in those days,” Rep. Darrell Issa (R-Calif.), the ranking member on the House Oversight and Government Affairs Committee, said Tuesday in a speech at the Heritage Foundation.

“The seeds of the meltdown began with the well-intentioned goal that everyone have a home even if they can’t afford it,” he said. “It led to one of the biggest ponzi schemes ever.”
http://www.cnsnews.com/news/article/50680

[Ehwmatt]

Nothing will change until public policy moves away from the assumptions that homeownership is a right

Forget just home ownership... nothing will change until public policy moves away from telling everybody that every commodity is a right. That's why we have all the people who think they should be entitled to something for nothing today in all facets of life.

[7 Wishes]

An ubiased source next time, please, MG.

[Lula]

An ubiased source next time, please, MG.

ya think?

any site hosting michelle malkin as a commentator is a real winner!!

[Ehwmatt]

An ubiased source next time, please, MG.

lol, says the guy who routinely quotes and links Huff Post. You're too much dude. Thanks for the Friday laugh

[Michigan Girl]

An ubiased source next time, please, MG.

What Democratic sight would you suggest, 7 ?!?!