Fine Unscrupulous Mortgage Lenders
Barack Obama 6 September 2007 2 Comments
The implosion of the subprime lending industry is more than a temporary blip in our economic progress. It is a cancer that, given today’s integrated financial markets, threatens to spread with devastating impact to housing and to our economy as a whole, unless we act to contain it.
It is also a parable about how an excess of lobbying and influence can defeat common sense rules of the road, placing both consumers and our nation’s economic well-being at risk.
Read the Full Story: http://www.ft.com/cms/s/dee95f76-55d3-11dc-b971-0000779fd2ac,_i_email=y.html
This is somewhat laughable and lamentable.
Does anyone remember when the pols were crying because loans were not readily available for minorities? Now that some profiteers have made loans available to those with credit problems, the same pols are screaming about the number of foreclosures that are taking place.
Several years ago, bank regulators were checking to see if lenders were in compliance with laws that prohibited discrimination in terms of not making loans to various minority groups. Banks and savings and loans could satisfy the examiners by pointing to the number of foreclosures that were in their portfolios. Bad mortgages were taken to mean that the banks had been lending to underserved groups that had been subjected to discrimination in the past.
Talk about politically correct perversity! Banks which were supposed to make good loans to assure profits for their investors and interest payments for their depositors could prove that they were not engaged in discriminatory lending practices by making a sufficient number of loans to unqualified applicants who were more likely to default.
The world has turned upside down.
Now, Senator Obama faults the banks for making risky loans to the same folks that he encouraged them to extend credit to.
Totally insane.
Sen. Obama likes to claim he is a new type of politician, one that unifies and give hope. His claims that lobbyists somehow created a market where people spend more on houses than they can afford is hopeless and wrong. His charge that a crime is committed by lending money at risk is one of the most divisive statements made by a major politician in many years.
Think about it. Wouldn’t a lender prefer to make a loan where he could be repaid? What incentive is there to loan money that will likely not get paid back? Yet Sen. Obama radicalizes the issue by claiming that taking legitimate busienss risk must be criminal, merits more regulation, and “mortgage brokers .. are hoodwinking low-income borrowers into taking on loans they cannot afford”.
Has the Audacious Senator ever considered that people may want to have a bigger house than they can reasonably pay for, much like people would like a bigger car, better dinner etc than they can reasonably afford in hopes that the future is brighter than the present?
Striving to live in a better house is not criminal. Neither is going broke paying for that house. Yet the Senator would have us believe that lenders are making crazed loans so that they can deliberately force borrowers into foreclosure, even though it is bound to be a bad investment to file court proceedings and force evictions.
Criminalizing the American Dream should not even be consdiered as a platform for a Presidential Candidate, let alone endorsed by a candidate so highly touted as Sen Obama.
I offer a challenge. Senator Obama, give us one proposal that actually works for the “forgotten man” rather than more partisan attacks on hardworking Americans. Send it here, and we will publish it tomorrow.
cdobserver@gmail.com
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