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+--- Thread: The government forced these banks to offer bad loans (/showthread.php?tid=62840)
The government forced these banks to offer bad loans - Acer - 09-25-2008
That's what Hannity says. The government was holding a gun to the heads of the banks, forcing them to offer loans to people who could not afford them. Such clarity is refreshing.
Re: The government forced these banks to offer bad loans - kanesa - 09-25-2008
If Sean said it, it must be true.
Re: The government forced these banks to offer bad loans - Gutenberg - 09-25-2008
I'm glad we have that settled.
Re: The government forced these banks to offer bad loans - kj - 09-25-2008
And to continue the thought, the banks were holding guns to the heads of people, making them buy houses they couldn't afford. Again, I don't think anyone who's responsible should be let off the hook, whether it's gov't, bank, or individual. kj.
Re: The government forced these banks to offer bad loans - $tevie - 09-25-2008
"This is my rifle, this is my gun, my rifle's for shooting, my gun is for fun!"
Re: The government forced these banks to offer bad loans - swampy - 09-25-2008
He was talking about Barny Frank's insisting that Banks make loans more available to minorities. It was "everyone should be able to buy a home" mentality. Whether they could afford it or not.
Re: The government forced these banks to offer bad loans - SDGuy - 09-25-2008
"The purpose of the CRA is to provide credit, including home ownership opportunities to underserved populations...The CRA mandates that each banking institution be evaluated to determine if it has met the credit needs of its entire community...The CRA is enforced by the financial regulators (FDIC, OCC, OTS, and FRB )...In 1995...the implementing regulations for the CRA were strengthened by focusing the financial regulators' attention on institutions' performance in helping to meet community credit needs...These revisions with an effective starting date of January 31, 1995 were credited with substantially increasing the number and aggregate amount of loans to small businesses and to low-and moderate-income borrowers for home loans."
http://en.wikipedia.org/wiki/Community_Reinvestment_Act
Re: The government forced these banks to offer bad loans - $tevie - 09-25-2008
The banks were not forced to make loans to people who could not afford them. The banks were required to make a certain amount of loans to people who were normally denied loans for various reasons -- but they were not required to talk these people into buying a house worth three times what they could afford, nor were they required to put false information onto loan applications to make the applicant appear more solvent than they were, nor were they required to bundle the mortgages and trade them like stocks. In short, nobody passed a law that lenders had to be greedy b@st@rds.
Re: The government forced these banks to offer bad loans - Carnos Jax - 09-25-2008
On top of that, no one can force big business to 'make these loans' in such large numbers...big business did it for one reason...GREED. They were hungry for something after the 'dot com' crash, and so thought that they could make a killing on real estate, and so in pursuit of huge sums of money, they gave loans to anyone and everyone.
Re: The government forced these banks to offer bad loans - SDGuy - 09-25-2008
Carnos Jax wrote:
...in pursuit of huge sums of money, they gave loans to anyone and everyone.
That about sums it up. And now we, collectively, get to pay for it. Something stinks in DC (as usual)...