Skip to comments.Obama Regime Brings Back Subprime Mortgages
Posted on 05/11/2011 11:57:01 PM PDT by neverdem
RUSH: Now, I have a story here that's simply unreal, and it's from last week. I purposely sat on this story to see if I would see it anywhere else. I've had it in the stack since May the 5th, almost a week. It's from Business Week magazine, a story by Clea Benson, headline: "A Renewed Crackdown on Redlining -- In the wake of the subprime implosion, the Obama Administration has stepped up its scrutiny of disadvantaged neighborhoods' credit access.
Community activists in St. Louis became concerned a couple of years ago that local banks weren't offering credit to the city's poor and African American residents. So they formed a group called the St. Louis Equal Housing and Community Reinvestment Alliance and began writing complaint letters to federal regulators.
"Apparently, someone in Washington took notice. The Federal Reserve has cited one of the group's targets, Midwest BankCentre, a small bank that has been operating in St. Louis's predominantly white, middle-class suburbs for over a century, for failing to issue home mortgages or open branches in disadvantaged areas. Although executives at the bank say they don't discriminate, Midwest BankCentre's latest annual report says it is in the process of negotiating a settlement with the US Justice Dept. over its lending practices."
Can I translate this for you? They're bringing back subprimes. Bringing back the subprime mortgage. It's simply unreal. While we're all being distracted by other news, everybody but me, the regime and the Federal Reserve are again forcing banks to give mortgages to people who cannot afford them, which is exactly what got us into our current mess. That's 90% of why we're where we are today. And you note here that the government's now telling banks where they have to put their branches. The Justice Department's telling this little bank company where they have to open branches, just like the National Labor Relations Board told Boeing, "You cannot open a plant in South Carolina." And it's being ramrodded -- if I read the whole story to you, you'd hear this -- it's being ramrodded by the same guy, Thomas Perez at the Justice Department, who opposed prosecuting the New Black Panthers.
The guy at Holder's Department of Justice who refused to prosecute the Black Panthers is pushing this new loan program for people that can't afford it, minority loans to people who can't pay them back. Thomas Perez was also the lawyer in the Justice Department who led the charge against the Arizona immigration law. So it looks to me like while everybody's focused on all these other things, hello subprime mortgages again, hello granting loans. This is exactly how it started in the first place. I know a lot of people want to blame Wall Street, but this is exactly how it started. Substitute the name Clinton for Obama in here and Janet Reno for Holder, and it's exactly what happened. And they are threatening all of these people in the banking business with untold investigations and who knows what results they would provide if they don't do this. And this group, the name of the group, the St. Louis Equal Housing and Community Reinvestment Alliance. What do you bet that's just ACORN under a new name? So the cycle is continuing. Chew on that.
They were redlined because their credit history and risk was bad news. None of these stories ever mentions that. It's always the racial discrimination angle!
Everybody needs some skin in the game. Everybody needs to put 20 % for the down payment. Only an idiot buys an adjustable rate mortgage.
IIRC, Rush made these comments on Tuesday, May 10, 2011. There are some other commentaries at the source from Rush's "Stack of Stuff."
>> Everybody needs to put 20 % for the down payment.
If that were mandatory, there would have been no housing catastrophe.
Their stupid is so extreme that it feels like a nefarious plan to destroy middle America.
If they were the stupid ones, why did we fall for it, and why are we falling for it again? (By "we," I mean the very middle class they, per Alinsky, have set out to destroy.)
This stupidity by the DOJ is unreal. There is no constitutional right to a sub-prime mortgage. Some people, many people today, just don’t have the steady income needed to make the payments on a mortgage year after year. Those people have to rent. End of story. Forcing banks to lend to people who don’t have steady reliable income and a good credit score is just going to put us back in a bigger mess than we were in two years ago.
The federal government just needs to go cold turkey and completely stop trying to pump up and prop up the housing market. It’s futile and costly to the Treasury and the taxpayers. They need to just let the housing market drop until prices stabilize and home buyers believe the risk of a significant price decline is gone. Only then will the housing market make a real sustained recovery.
I know, just angling on the ‘stupid’ theme for the sake of insulting the jackwagons.
We must get rid of the entire Obama regime next year to stop this stupidity and theft from responsible taxpayers. That’s the only way to stop this nonsense. Some people just have to rent. Big deal...it’s not a real problem.
The middle class fell for it in ‘08. Cloward - Piven has been successful to a degree.
The fact that Captain Gutsy was able to claim Osama’s head doesn’t mean that the ecomony won’t be the major factor in the next election. And, if the pundits are right, Obamacare will be front and center, too.
However, I have faith in the American people. Little by little they/we are waking up to the destruction of this country, and to their/our lives, that is ongoing.
Somehow, visions of an ACORN type organization promoting this waste of taxpayers money, floats around in my disgusted mind.
US Veterans Affairs guaranteed loans are no down payment and low closing costs: http://www.benefits.va.gov/homeloans/lp.asp
Long ago, I had a VA mtg. I thought at that time there was a downpayment, something like 10%. Still, the requirements on earnings and credit were very tough. The trick was to find a bank that would actually make the loan at a prescribed VA rate. I was surprised reading how it has morphed into another entitlement program.
Someone noted that 20% down should have been the norm for all mortgages. Does anyone notice our neighbors to the North don’t have this huge number of foreclosures and defaults? Why might that be...well, for starters, all mortgages there required 20%...there were no liar mortgages or other “creative” financings either. And remember about the mortgage “crisis”: No one of substance at any bank, mortgage company, real estate company or Fannie or Freddie has GONE TO JAIL albeit this has been the biggest robbery of all times and virtually destroyed the country.
We always hear that if we don’t learn from our history we are doomed to repeat it, but this is nuts! This is exactly what helped sink the banks, and it happened like, yesterday.
I had the same experience with V.A. about 40 years ago. I got the loan and paid it off but it was by no means a "gift" from V.A.
IIRC reading an article about a year, maybe more than a year ago the Subprime Mortgages, the assaults on the Mortgage Industry actually never ceased even during the hooplah over the housing bubble bursting. The CRA was never rescinded, and the “Community Organizers” continued unabated throughout that period of time, and to this day.
I’d say Rush is probably pointing out a newly conceived Community Mortgage Aggressor more than a restart of the ongoing, existing Leftist/minority assault on the mortgage industry.
Just like our POTUS the Left is using minorities as shields to gain their ground in this war.
“And this group, the name of the group, the St. Louis Equal Housing and Community Reinvestment Alliance. What do you bet that’s just ACORN under a new name?”
Why, of course! See here: http://slehcra.wordpress.com/contact-us/
Bottom right of page it says:
* ACORN St. Louis
So there you have it!
20% down required would screw everyone who already owns a home. People who DID put 20% down would be upside down due to the resulting drop in values (due to far reduced demand).
10% is a reasonable compromise IMHO. Still some skin in the game (and IIRC, historically, defaults drop way off at the 10% equity level).
Regardless, why is nobody stating the obvious - they’re not being turned down for loans because they’re **insert protected minority group here**, it’s because they DON’T PAY THEIR DAMN BILLS!
Somehow I don’t think a guy like Herman Cain would have trouble getting a mortgage.
Obama: I know what will fix the economy! ANOTHER HOUSING BUBBLE! Who cares what happens in 10 years, I won’t be president anymore!
Lather. Rinse. Repeat.
I don’t believe the vets are part of the problem.
I bet that obama and friends have no understanding of the what the subprime is all about. They just think that it is all the man making money off the poor.