Take a few minutes and watch this video.
Tuesday September 30, 2008
13 Comments
RSS feed for comments on this post.
Sorry, the comment form is closed at this time.
RSS feed for comments on this post.
Sorry, the comment form is closed at this time.
Powered by WordPress
The community reinvestment act was created to help the community. There is ALOT more to it the just the mortgage and loan part. It was set up to ensure that banks loan equally. Based on all aspects of the community, income, race ect. It also tracks how much time and money banks donate. It really is a good thing over-all. Just, the fannie part kinda sux. But, I wouldn’t have a house right now if they didn’t have the first home buyer program.
This is a really scary time to work at a bank. People keep coming in trying to take all their money out.. We don’t keep large amounts on hand. Then they think we won’t give it to them at all. And start yelling….. It’s not good. Please be nice to your tellers.
Comment by Jocelyn — Tuesday September 30, 2008 @ 7:50 pm
But the difference is you actually bought a house you could afford. The problem began when the lending institutions were forced to give loans to people that couldn’t afford them. That’s why we had the foreclosure problem which gave rise to the failing banks problem. And it all happened because of Socialist beliefs.
You can’t run a country using both socialism and capitalism. One or the other but if you try to do both, well, you see what happened.
Comment by Don — Wednesday October 1, 2008 @ 6:28 am
Hmm. That’s one theory. This disagrees with your analysis. It seems the problem is our loose morals, gays and abortion!
Comment by Daryl — Wednesday October 1, 2008 @ 4:39 pm
Where in the world did you find that? You must have spent hours searching.
Comment by Don — Wednesday October 1, 2008 @ 4:50 pm
A lot of other blogs were referencing that blog as an example of crazy religious-right thought.
Like Pharyngula.
Comment by Daryl — Wednesday October 1, 2008 @ 7:08 pm
BTW, Mike Heath is the “Christian Civil League of Maine Executive Director”.
Comment by Daryl — Wednesday October 1, 2008 @ 7:12 pm
I’m still lost. I don’t understand what that has to do with the video I posted.
Comment by Don — Wednesday October 1, 2008 @ 7:23 pm
I posted it tongue-in-cheek as an alternative explanation for the financial problems.
(My tongue was in my cheek, but I don’t think the author’s was.)
Comment by Daryl — Wednesday October 1, 2008 @ 7:39 pm
Oh. Ok. Now I understand. And I agree he’s a ways further right than most people I know.
Comment by Don — Wednesday October 1, 2008 @ 7:52 pm
Actually, it’s not really the fault of the CRA. The only reason we didn’t get a house we couldn’t afford is because I knew we couldn’t afford it. Our mortgage officer tried to get us to borrow more. But the math didn’t work out. He said it wouldn’t be a big deal, and wouldn’t we love the bigger house. Mortgage brokers are paid by commission. The bigger the loan, the bigger the commissions. If you have people that get greedy, they take advantage of the CRA, and people without the knowledge to know better.
And another HUGE part of the problem. Even bigger then the CRA are the balloon and arm loans. Interest only payments and flexible rate mortgages made people think they could afford it when they couldn’t. Their intro rates are over now, and they can’t afford their monthly payment. I’ve seen alot of foreclosures due to this.
Comment by Jocelyn — Thursday October 2, 2008 @ 9:52 am
Jocelyn,
It’s interesting to hear about your experiences at the bank. I’m surprised that people are afraid of banks defaulting and losing their money. Haven’t they heard about FDIC? Or do they have more than $100,000 in one bank? (Not a good idea!)
Comment by Daryl — Thursday October 2, 2008 @ 11:22 am
“If you have people that get greedy, they take advantage of the CRA, and people without the knowledge to know better”
Jocelyn,
My wife and I both bought our house under the FHA rules in 1994 after living in and apartment for 5yrs and having a two year old child and another on the way. The rules were 3% down and a “Mortgage Insurance” to protect the bank if we could not pay all under Fannie Mae. Plus as a fiscally responsible conservative we also did not buy a house we could not afford. The CRA and ACORN forced banks that new better to loan to people that could not afford homes and allowed greedy mortgage brokers to take advantage of people who didn’t know better. The CRA, ACORN, Greedy Mortgage Brokers, AND people who didn’t know better have caused the Investment Banks and Thrift Savings and Loans demise. This is no different than the Technology Bubble of 2000, speculative investment and people who don’t know any better. Hold on to you cash, it’s going to be a buyers market and your going to want to get in when this bump in the road turns around.
Comment by Scott — Thursday October 2, 2008 @ 6:39 pm
Just in case anyone actually has this kind of money and was interested. The rules for a beneficiary have temporarily changed. You can now be covered for ANY person or non-profit organization. So, if you have 300,000 in one bank, make sure you have at least 3 beneficiaries.
Comment by Jocelyn — Thursday October 2, 2008 @ 7:15 pm