Thought I had seen at all on this foreclosure mess. I’ll bet the city had no trouble with “inflated” property values at the time these loans were given. There was no discrimination at this time – if you bought a home you couldn’t afford, it was foreclosed on just like everybody else. Want to put the test to this ridiculous lawsuit – reduce the interest rate from the “implied” black/latino rate down to the non-discriminatory rate and these homeowners would still not be able to pay for these loans.
This is a prime example of government meddling …. up an industry. In the 70’s and 80’s, the feds accused banks of “red-lining”, or the refusal of financial institutions to issue mortgage loans in certain areas, mostly minority populated. They coerced the banks into lowering their credit standards, so that unqualified borrowers could obtain loans. Now, the banks are again cast as the villains, just because they did what the government forced them to do. It’s the famous “damned if you do, damned if you don’t” ideology that government represents. Incompetence at its best.
Thought I had seen at all on this foreclosure mess. I’ll bet the city had no trouble with “inflated” property values at the time these loans were given. There was no discrimination at this time – if you bought a home you couldn’t afford, it was foreclosed on just like everybody else. Want to put the test to this ridiculous lawsuit – reduce the interest rate from the “implied” black/latino rate down to the non-discriminatory rate and these homeowners would still not be able to pay for these loans.
This is a prime example of government meddling …. up an industry. In the 70’s and 80’s, the feds accused banks of “red-lining”, or the refusal of financial institutions to issue mortgage loans in certain areas, mostly minority populated. They coerced the banks into lowering their credit standards, so that unqualified borrowers could obtain loans. Now, the banks are again cast as the villains, just because they did what the government forced them to do. It’s the famous “damned if you do, damned if you don’t” ideology that government represents. Incompetence at its best.