Too bad the billions will not come out of the pockets of the greedy bankers that took it to begin with and will eventually trickle down to the borrowers in raised rates and fees.
So…the federal government mandated that banks give mortgages to previously unqualified customers via the Fair Housing Act, Congress threatened them for non-compliance when they didn’t, and then they get sued when the market crashes. Perfect!
A real shame is that they can’t put Barney Frank in prison who was one of the causes for this as he pushed Freddie and fannie to take on loans from people who could not afford to buy a house let alone pay for one. This guy should have his personal assets siezed and he should be in jail.
Hi Libby, not sure I follow you on the trickle down. There are a lot of crooks in this pot.
First, the mortgage brokers were basically gangsters in ties and only lied when the filled out the application.
Mortgage lenders who bought the mortgage contracts and then packaged and sold them as investment vehicles.
The banks for having these loan portfolios which many knew would not mature if the housing market dipped let alone collapse.
AIG for very aggressively insuring the loan portfolios to the point that they had to be bailed out by the government.
Barney Frank who pushed Fannie and Freddie into buying deals and guarentees on loans to people who could not afford a house let alone pay for one. A recent article has Frank pushing Fannie on a portfolio where a third of the loans in the package were to people who had no job at the time of the mortgage application.
The Democartic Congress at the time, which allowed Barney Frank, Charlie Rangel and others to ride rough shod over Fannie and Freddie when audits were telling them this is bad practice.
In the end, even if we collect the bailout money or any other money we the people are in the whole. Trickling this down to higher borrowing rates and fees to people who really qualify for a lone is penalizing good taxpayers twice. The deadbeats are forclosed on and gone. In fact, I know of instances where people let a high end home forclose (on purpose) just to buy a larger house because the housing market collapsed and they could buy the new home and then let the old home go into forclosure.
That’s what I meant by trickle down, Sarge. The banks are paying these large settlements, but they will make up the money by raising fees and rates on borrowers. They will not take it in the shorts like they should. And the crooked bankers that created this entire mess will still have the millions they stole from the American people. It sucks.
I agree 100%. Those of us who do what’s right, try to follow the rules, and live within our means, get the shaft. I get to sit in my $110,000 home and hear about the problems of those poor souls who are struggling with their $500K homes.
P.S. I do believe I see Sargent Major and Libby agreeing on something here. Outstanding!
Where’s the millions and billions that were paid in the settlements? Who gets that money? I havent seen a cent, and I had Countrywide!
Too bad the billions will not come out of the pockets of the greedy bankers that took it to begin with and will eventually trickle down to the borrowers in raised rates and fees.
Why are you entitled to part of the settlement?
So…the federal government mandated that banks give mortgages to previously unqualified customers via the Fair Housing Act, Congress threatened them for non-compliance when they didn’t, and then they get sued when the market crashes. Perfect!
TARP
$700,000,000,000
FHA so far has sued banks for about
$3,000,000,000.
So 95% of the loans were OK with FHA, Fannie, Freddie etal?
Sounds like sombody should be suing FHA.
A real shame is that they can’t put Barney Frank in prison who was one of the causes for this as he pushed Freddie and fannie to take on loans from people who could not afford to buy a house let alone pay for one. This guy should have his personal assets siezed and he should be in jail.
Hi Libby, not sure I follow you on the trickle down. There are a lot of crooks in this pot.
First, the mortgage brokers were basically gangsters in ties and only lied when the filled out the application.
Mortgage lenders who bought the mortgage contracts and then packaged and sold them as investment vehicles.
The banks for having these loan portfolios which many knew would not mature if the housing market dipped let alone collapse.
AIG for very aggressively insuring the loan portfolios to the point that they had to be bailed out by the government.
Barney Frank who pushed Fannie and Freddie into buying deals and guarentees on loans to people who could not afford a house let alone pay for one. A recent article has Frank pushing Fannie on a portfolio where a third of the loans in the package were to people who had no job at the time of the mortgage application.
The Democartic Congress at the time, which allowed Barney Frank, Charlie Rangel and others to ride rough shod over Fannie and Freddie when audits were telling them this is bad practice.
In the end, even if we collect the bailout money or any other money we the people are in the whole. Trickling this down to higher borrowing rates and fees to people who really qualify for a lone is penalizing good taxpayers twice. The deadbeats are forclosed on and gone. In fact, I know of instances where people let a high end home forclose (on purpose) just to buy a larger house because the housing market collapsed and they could buy the new home and then let the old home go into forclosure.
That’s what I meant by trickle down, Sarge. The banks are paying these large settlements, but they will make up the money by raising fees and rates on borrowers. They will not take it in the shorts like they should. And the crooked bankers that created this entire mess will still have the millions they stole from the American people. It sucks.
I agree 100%. Those of us who do what’s right, try to follow the rules, and live within our means, get the shaft. I get to sit in my $110,000 home and hear about the problems of those poor souls who are struggling with their $500K homes.
P.S. I do believe I see Sargent Major and Libby agreeing on something here. Outstanding!
That should have been- “we are in the hole” not whole, heavy fingers I guess