Banks Are Not Driving Down Home Prices!
Moderator: Jim O'Bryan
-
Stephen Eisel
- Posts: 3281
- Joined: Fri Jan 26, 2007 9:36 pm
-
Jim O'Bryan
- Posts: 14196
- Joined: Thu Mar 10, 2005 10:12 pm
- Location: Lakewood
- Contact:
Ryan Salo wrote:Ok this thought is just based on my experience in the mortgage industry.
Here is a link to some information about the predatory lending law that Cleveland put in place a few years ago.
http://findarticles.com/p/articles/mi_m ... _113905174
In my opinion, this action hurt Cleveland homeowners much more than it helped them.
If a homeowner got behind on their mortgage for any reason they could typically not refinance. Almost all of the "subprime lenders" pulled out of Cleveland. Only FHA conforming and a very few subprime lenders were left. If someone had 2 30 day lates and had a lot of equity but fell on bad times and needed help out most could get help except if they lived in Cleveland. The laws that were put in place to protect consumers were hurting those that needed the help the most...
Just my opinion
Ryan
Would you not agree that for one reason, or another, a lot of people ended up with loans they could not afford in the real world?
Would you agree that from some place many people thought they would do better refinancing on variable rates? Make more in the stock market then loan rates, improve home and property value, consolidate loans, and start again, etc...
Now take a step back and look at a much larger picture, bring history into it as well.
Chaos? Confusion? Series of random events?
How does "Antique Roadshow" fit into this?
Maybe the answer to all of this came from Bob Zimmerman.
.
Jim O'Bryan
Lakewood Resident
"The very act of observing disturbs the system."
Werner Heisenberg
"If anything I've said seems useful to you, I'm glad.
If not, don't worry. Just forget about it."
His Holiness The Dalai Lama
Lakewood Resident
"The very act of observing disturbs the system."
Werner Heisenberg
"If anything I've said seems useful to you, I'm glad.
If not, don't worry. Just forget about it."
His Holiness The Dalai Lama
-
Ryan Salo
- Posts: 1056
- Joined: Thu Jul 28, 2005 3:11 pm
- Location: Lakewood
- Contact:
Jim,
I agree there is a lot more to this, but ask some of the hundreds of home owners that were not able to refinance due to Cleveland law to protect them if it helped or hurt. Many would have loved to get into another 9% ARM just to get out of the current mess. Instead all the lenders waved from the city border and told them if only you lived in a suburb we could help.
While I don't necessarily agree that people with 560 scores and multiple lates in the recent past should be able to buy a house with no money down once the market become available it hurts a lot of people when that is taken away.
The reason I brought up the Cleveland law is to make a point that this is what is happening across the nation now with some of the new laws being put into place. The free market is not able to help the consumer so that is why the government is getting involved.
It would be kind of similar if the national guard took away all the guns and legal authority of local police and then came in to do their job. The local police could probably help but their hands are tied.
If subprime = predatory then the country is going to get much worse before it gets better.
I agree there is a lot more to this, but ask some of the hundreds of home owners that were not able to refinance due to Cleveland law to protect them if it helped or hurt. Many would have loved to get into another 9% ARM just to get out of the current mess. Instead all the lenders waved from the city border and told them if only you lived in a suburb we could help.
While I don't necessarily agree that people with 560 scores and multiple lates in the recent past should be able to buy a house with no money down once the market become available it hurts a lot of people when that is taken away.
The reason I brought up the Cleveland law is to make a point that this is what is happening across the nation now with some of the new laws being put into place. The free market is not able to help the consumer so that is why the government is getting involved.
It would be kind of similar if the national guard took away all the guns and legal authority of local police and then came in to do their job. The local police could probably help but their hands are tied.
If subprime = predatory then the country is going to get much worse before it gets better.
Ryan Salo
-
Bill Grulich
- Posts: 91
- Joined: Sat Mar 26, 2005 12:21 pm
- Location: Lakewood, Ohio
The Community Reinvestment Act that Congress passed in 1977 was meant to curtail the banks from redlining. The Act is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound banking operations. The banks seemed to have done a stellar job.
