Log In | Register
51 Comments
Print
msnbc.com Newsadvertisement
The mortgage mess that has upended millions of homeowners’ finances is now taking a bigger bite out of the nation’s banking system.
And while depositors with insured accounts face little risk of losing their money, the insurance fund’s top regulator said it may have to borrow money from the Treasury to make good on that promise to consumers.
In separate reports, regulators that oversee the nation's banks and thrifts reported that profits are falling and the number of bad loans on the books is rising.
On Wednesday, the Office of Thrift Supervision said the nation’s roughly 830 thrifts lost $5.4 billion in the second quarter and set aside a record amount of money to cover losses from bad mortgages and other loans. That was the thrift industry’s second-largest quarterly loss ever, after a $8.8 billion loss in the fourth quarter of last year.
The news followed Tuesday’s report from the Federal Deposit Insurance Corp. that the number of troubled banks jumped in the second quarter to the highest level in about five years. Bank profits plunged by 86 percent, as slumps in the housing and credit markets continued.
The FDIC said 117 banks and thrifts were considered to be in trouble in the second quarter, up from 90 in the prior quarter and the biggest tally since mid-2003. (The agency doesn't disclose the names of institutions on its internal list of troubled banks; doing so would likely spark a run on deposits. On average, 13 percent of banks that make the list fail.)
While the vast majority of banks are in good shape to weather the ongoing housing downturn and credit crunch, the problems faced by the banking industry will likely get worse before they get better, according to FDIC Chairwoman Sheila Bair.
“We don't think this credit cycle's bottomed out yet,” she told reporters at a press conference releasing the latest data. “I don't like to make predictions, but I think it's going to continue to be very challenging. And I think the number of banks and assets on the troubled bank list will continue to go up."
The main problem faced by banks and regulators is that no one knows just how many more loans will go bad. And the answer to that question won’t be known until house prices stop falling. Until they do, the mortgages on those houses — and the bonds created by Wall Street that are backed by those mortgages — will continue to lose value.
Banks also hold billions of dollars worth of stock in troubled mortgage giants Fannie Mae and Freddie Mac, whose share prices have plummeted as the mortgage mess has swamped the government sponsored enterprises with huge losses. A government bailout of the companies could do further damage to those stock holdings. Bair said the FDIC is "closely monitoring that situation."
While the risk of bank failures has increased, depositors who stick to FDIC-insured banks — and keep their deposits under the limits covered by the fund — have little to worry about. For most accounts, that means keeping the balance under the $100,000 maximum on deposit insurance. (Individual Retirement Accounts are covered up to $250,000.)
The limits apply to each account, so depositors with higher balances who divide their savings among accounts in separate banks are also covered. (Multiple accounts in the same bank may also be covered if they’re divided among separate “ownership categories" — which include single accounts, retirement accounts, joint accounts or revocable trusts.)
So far, only nine lenders have failed this year, the largest of which was Pasadena, Calif.-based IndyMac, which was taken over by the FDIC in July with about $32 billion in assets and $19 billion in deposits. It was the second-largest financial institution to close in U.S. history, after Continental Illinois National Bank in 1984.
Those failures have depleted the insurance fund, which now stands at $45 billion — less than the FDIC is supposed to have on hand, according to Daniel Alpert, an investment banker at Westwood Capital.
“You’re talking about roughly $45 billion of reserves insuring $4.5 trillion of deposits,” he said. “And you’re in an environment right now where non-current loans, delinquent loans are increasing at a faster pace than banks putting aside reserves. That's not a good thing.”
To replenish the insurance fund, the FDIC said it plans to raise the premiums it charges banks — and may charge the highest premiums to the banks with the riskiest deposits. While that will put the fund on a sounder footing, it could make life more difficult for bankers trying to shore up their own assets, according to Peter Sorrentino, a portfolio manager at Huntington Asset Advisors.
“You've got a risk of siphoning off capital when it's needed,” he said.
Bair also told the Wall Street Journal the FDIC couldn’t rule out the possibility that it may have ask the Treasury for capital to tide it over through the coming round of bank failures. The money would be used to pay depositors insurance claims, and then paid back after the assets of the failed bank are sold.
13 Votes- Enjoy this article? Help vote it up the 'Vine.
Published to:
- John Schoen's Column, All of Newsvine
- Groups: none
- Regions: none
 | FDIC: 117 troubled banks, highest level since 2003 | Associated Press | Tue Aug 26 | 0 |
| US thrifts 2Q loss of $5.4B is second largest ever | Associated Press | Wed Aug 27 | 0 |
- Public Discussion (52)
What's this?
Who's leading the conversation?
This visualization below allows you to see the impact that each user
has on the current conversation.
The top row contains the group of users who have had the most impact, the 2nd
row the group of users who have had the 2nd most impact (et cetera).
Users with similar impact are grouped together, and the average score of the group
is shown to the left of the group. The author of the article is also shown on the
left, in their corresponding group.
Each user's score is based on the number of comments the user has made plus the
number of votes their comments have received. The scores are calculated relative
one another, so while their absolute value is not particularly important, their
relative difference does indicate a larger difference in impact on the conversation.
2.7
2.1
0.4
{"commentId":2609576,"authorDomain":"wwaller"}
Until such time that mortgage brokers stop talking buyers into loans that they truly cannot afford, the mortgage business will continue to be a mess. Young and old buyers are being talked into purchasing properties which will use more than one-half of their take home pay to pay for that mortgage once taxes and insurances are added in. Within six months to a year, they've discovered they can't afford the mortgage payments. Real estate agents are not helping the matter either. They try to talk sellers into a rebate percentage offer to help the purchasers with closing costs. If they can't afford the closing costs on the property, they shouldn't be buying the property and using all of their savings for a down payment! Wake up America! If you can't afford it, don't buy it! If you want to sink 60 to 70 percent of your net income into a mortgage payment, plan not to do much but stay home and enjoy your new investment!
{"commentId":2609576,"threadId":"341366","contentId":"1792677","authorDomain":"wwaller"}
#1 - Wed Aug 27, 2008 2:10 PM EDT{"commentId":2609786,"authorDomain":"liquorup"}
{"commentId":2609838,"authorDomain":"gentleman-programmer"}
A couple of points:
#1 The FDIC is leveraged 100 to 1, 45 billions in reserves to cover 4.5 trillions in deposits? Crazy Hedge Funds don't approach that kind of leverage.
#2 You could change a few words in this story and be writing about Social Security.
There are only a few ways out of this: raise taxes, print money, slash consumption or all of the above. Something tells me Gold is going to $2000/oz.
{"commentId":2609838,"threadId":"341366","contentId":"1792677","authorDomain":"gentleman-programmer"}
#3 - Wed Aug 27, 2008 2:25 PM EDT{"commentId":2609905,"authorDomain":"mudcat"}
How about not lending money to people who can't afford to pay it back. It's like me lending a 1000$ to some bum on the street and then getting mad that he does'nt pay me back
{"commentId":2609905,"threadId":"341366","contentId":"1792677","authorDomain":"mudcat"}
- 2 votes
#4 - Wed Aug 27, 2008 2:29 PM EDT{"commentId":2609959,"authorDomain":"idcmanager"}
and getting a million dollar bonus for doing so
{"commentId":2609959,"threadId":"341366","contentId":"1792677","authorDomain":"idcmanager"}
{"commentId":2610472,"authorDomain":"robertmickus175"}
How about a more radical idea. Government insured mortgages that carry no interest,
and are principal paybacks only for terms of a max of 15 years. If you want a strong
country let people invest in their own wealth creation. My place of residence is not worth
the 3 times number I will have payed back to the system.
{"commentId":2610472,"threadId":"341366","contentId":"1792677","authorDomain":"robertmickus175"}
- 1 vote
{"commentId":2609938,"authorDomain":"shoneycutt52"}
Again the results of an unregulated market driven environment that has resulted in over indulgence by the populace. Greed...
{"commentId":2609938,"threadId":"341366","contentId":"1792677","authorDomain":"shoneycutt52"}
- 1 vote
#5 - Wed Aug 27, 2008 2:31 PM EDT{"commentId":2610139,"authorDomain":"gabemendoza10-1"}
Bad loans for sure. I'm embarrassed to say that several of my family members have lost or are losing their homes due to "bad" loans. They should have known what they were getting into. I told many of them that they didn't make enough money to afford the house they were living in. Did they listen??? No!! I also remember being approached by mortgage brokers, even at freaking Target or while eating at Panda Express, and being asked if I wanted to own a home. They'd tell me I could get a home with no income verification and for whatever amount I wanted, plus, they would tell me how low my payment would be. Wow!! I could own a home!! Fortunately for me, that darn high school math stuck with me and I realized that I couldn't pay off $500,000 over 30years at $1,200 a month, with no down payment at 8% interest. These brokers were like hounds, and would even offer me jobs so I could sell mortgages to Spanish-speaking folks. Anyhow, a lot of people should have known what they were getting into. Now that home prices are very good for buying, even with my good (not excellent) credit and sufficient income, it is harder for me to qualify for a loan. What a mess!! Oh and all of those people losing their homes are now renting, so my rent has gone up and since I'm moving out soon to a smaller apartment, I'll have an even harder time finding somewhere to rent because of the competition. Oh well!!
{"commentId":2610139,"threadId":"341366","contentId":"1792677","authorDomain":"gabemendoza10-1"}
#6 - Wed Aug 27, 2008 2:44 PM EDT{"commentId":2610166,"authorDomain":"goodreader"}
Hey there BEN: If you listen to Obama he infact does go into detail on his plans. Maybe you don't listen very well.
{"commentId":2610166,"threadId":"341366","contentId":"1792677","authorDomain":"goodreader"}
- 1 vote
#7 - Wed Aug 27, 2008 2:45 PM EDT{"commentId":2611801,"authorDomain":"benramz"}
Do tell, enlighten me on his plan.
I hear from Barack
We need change in this country.
You accomplished this by makeing me the Democratic Nominee for President.
Please inquiring minds want to know, what is his plan.
{"commentId":2611801,"threadId":"341366","contentId":"1792677","authorDomain":"benramz"}
{"commentId":2650402,"authorDomain":"bouvierj"}
Ben,
Since you obviously have a sincere interest in learning more about Obama's specific plans for change go to www.barackobama.com to find out about them. In his plans for the economy he addresses home ownership:
Protect Homeownership and Crack Down on Mortgage Fraud
Obama will crack down on fraudulent brokers and lenders. He will also make sure homebuyers have honest and complete information about their mortgage options, and he will give a tax credit to all middle-class homeowners.
Create a New FHA Housing Security Program: Barack Obama strongly supports the efforts of Senate Banking Committee Chair Chris Dodd (D–CT) to create a new Federal Housing Administration (FHA) program that will provide meaningful incentives for lenders to buy or refinance existing mortgages and convert them into stable 30-year fixed mortgages. This plan provides an important federal backstop – not a bailout – to this growing national problem. Neither lenders nor homeowners would receive a windfall from this plan. Create a Universal Mortgage Credit: Obama will create a 10 percent universal mortgage credit to provide homeowners who do not itemize tax relief. This credit will provide an average of $500 to 10 million homeowners, the majority of whom earn less than $50,000 per year. Ensure More Accountability in the Subprime Mortgage Industry: Obama has been closely monitoring the subprime mortgage situation for years, and introduced comprehensive legislation over a year ago to fight mortgage fraud and protect consumers against abusive lending practices. Obama's STOP FRAUD Act provides the first federal definition of mortgage fraud, increases funding for federal and state law enforcement programs, creates new criminal penalties for mortgage professionals found guilty of fraud, and requires industry insiders to report suspicious activity. Mandate Accurate Loan Disclosure: Obama will create a Homeowner Obligation Made Explicit (HOME) score, which will provide potential borrowers with a simplified, standardized borrower metric (similar to APR) for home mortgages. The HOME score will allow individuals to easily compare various mortgage products and understand the full cost of the loan. Create Fund to Help Homeowners Avoid Foreclosures: Obama will create a fund to help people refinance their mortgages and provide comprehensive supports to innocent homeowners. The fund will be partially paid for by Obama's increased penalties on lenders who act irresponsibly and commit fraud. Close Bankruptcy Loophole for Mortgage Companies: Obama will work to eliminate the provision that prevents bankruptcy courts from modifying an individual's mortgage payments. Obama believes that the subprime mortgage industry, which has engaged in dangerous and sometimes unscrupulous business practices, should not be shielded by outdated federal law.
There are plenty of specifics on Obama's site but, as usual, Republicans find it easier to slime the opponent than to run on their own record or debate the issues.
{"commentId":2650402,"threadId":"341366","contentId":"1792677","authorDomain":"bouvierj"}
{"commentId":2610168,"authorDomain":"sjones34668"}
Quite frankly, I have no sympathy for the banks or the government. When the average person began having difficulty making their payments due to job lay offs and an over all decline in building, (which includes ancillary services such as plumbing, electric, painters, pools etc.) they were just told you were "too stupid" and should never have been given a loan in the first place. Now there are lay offs and job losses in many different sectors, not just construction. Banks should have worked with distressed homeowners in the first place. Had the banks not been so f**//ng greedy in the first place or sold loans to any country in the world people would still be in their homes, there would not be such an over abundance of foreclosed homes and the local and national economies might not be in quite such a tailspin. Now guess who will have a hard time paying their bills.......BOO HOO Bankers, see you at the free food bank. (Don't drive your Jag, it just looks tacky.)
{"commentId":2610168,"threadId":"341366","contentId":"1792677","authorDomain":"sjones34668"}
- 3 votes
#8 - Wed Aug 27, 2008 2:45 PM EDT{"commentId":2610526,"authorDomain":"dsawyer4446"}
I couldn't agree more! I am afraid some of the losses need to be absorbed by the CEOs who make billions in salaries and bonuses. Why is it, when there is a downturn in the economy, the corporations can lay people off and raise prices to meet their profit margins, but the average wage earner has no recourse? I certainly don't mean to be overly simplistic, but sometimes the most simplistic solutions are the most effective.
{"commentId":2610526,"threadId":"341366","contentId":"1792677","authorDomain":"dsawyer4446"}
- 2 votes
{"commentId":2610364,"authorDomain":"bk14231"}
Where were the regulators the last five years. Checking old ladies checking accounts to see if they were terrorists while lending went to hell. The government has to take the blame also. I was in commercial banking for almost 40 years and the last five years all we heard was "Patriot Act". Asset quality was never discussed or mentioned. The regulators are now over reacting like they did in the 80's with the oil crisis. We need pro-active leadership not reactive leadership.
{"commentId":2610364,"threadId":"341366","contentId":"1792677","authorDomain":"bk14231"}
#9 - Wed Aug 27, 2008 2:56 PM EDT{"commentId":2610456,"authorDomain":"amjrmd"}
Anybody want to join me in slapping every banker that gave out a loan to a risky candidate, not to mention the people in charge of FDIC, IRS and everybody else in charge of our economy? I'm only in college so I haven't really had the chance to make that many heavy financial investments (other than signing college loans), so I can't really complain. All I want are some new presidential candidates with new plans for pulling our economy out of the toilet...
{"commentId":2610456,"threadId":"341366","contentId":"1792677","authorDomain":"amjrmd"}
- 1 vote
#10 - Wed Aug 27, 2008 3:01 PM EDT{"commentId":2611212,"authorDomain":"mikekatie"}
A.J.
My best to you in school.
Here is some advice for you:
Be prepared to take care of yourself and your loved ones. Get a good job with a good company and if they offer you further training or advancement...take it.
Pay your student loans back, when it is time.
Do not borrow money you cannot afford to pay back.
Shop your own credit cards don't trust what comes in the mail and don't have 10.
in life you will find:
1 maybe 2 Major cards (we use one for personal and the other is for business travel)
We like the one that adds air miles for usage. It helps at vacation time.
1 Gas Card
Individual store cards are a waste.
Do not use your credit card for a personal loan. Be able to pay off what you use when the bill is due.
When you receive unsolicited loan applications in the mail, call them and tell them to take you off your list.
Establish a relationship with a banker, loan officer etc. (once you have a job and regular income) (This is helpful because they will be able to advise on loans for cars, house, credit cards, investments. Make sure he is honest.)
Always increase your savings account/investment portfolio.
Buy insurance: Car, Health and Property. That will help your savings grow because...stuff happens.
{"commentId":2611212,"threadId":"341366","contentId":"1792677","authorDomain":"mikekatie"}
{"commentId":2611883,"authorDomain":"benramz"}
Excellent advice from TXMom32.
One furthur comment is to join a well established Credit Union. You will get better auto loan rates, Credit Card Rates and access to investment and home-ownership programs.
{"commentId":2611883,"threadId":"341366","contentId":"1792677","authorDomain":"benramz"}
{"commentId":2614129,"authorDomain":"mikekatie"}
Ben-306323
Good point. We use a credit union as well. Got a great rate on car loan.
{"commentId":2614129,"threadId":"341366","contentId":"1792677","authorDomain":"mikekatie"}
{"commentId":2610538,"authorDomain":"mikekatie"}
Quite frankly I have no sympathy for the folks who filed fraudulent loan applications, took possession of the homes, and agreed to pay their debt. Now they claim they were too stupid to understand the terms of the contracts they signed. Stupid or not they agreed to the terms.
The loan officers are no better but at least it is their job. If someone tells you that based on your income you can afford a house costing $110,000 but if you want to go with an ARM you can afford a house costing $250,000. Wouldn't you be interested in the particulars of that arrangement? Or Do you not care cause you can live in a much better neighborhood than you can really afford?
Now if that Loan officer is knowingly using false income statements or information than he is Criminal and deserves to be prosecuted.
If the Loan applicant is signs an application where they have provided false information, that is criminal and they should go to jail.
If The loan applicant did not read the contract, ask questions at closing, understand the contract and signed it anyway they need to pay their debt.
There is more, in short there are many who should be prosecuted in this whole mess, both little greed fish and the great big predator fish.
{"commentId":2610538,"threadId":"341366","contentId":"1792677","authorDomain":"mikekatie"}
- 1 vote
#11 - Wed Aug 27, 2008 3:07 PM EDT{"commentId":2610664,"authorDomain":"donaho4"}
Let em fail.
Greed sucked them in(both the bank and the consumer) and now they are crying foul.
Good heavens let a little capitalism happen here.
No more bailouts.
{"commentId":2610664,"threadId":"341366","contentId":"1792677","authorDomain":"donaho4"}
- 3 votes
#12 - Wed Aug 27, 2008 3:15 PM EDT{"commentId":2610800,"authorDomain":"p-ff-ft"}
No kidding, how is it that failure is being rewarded....other than the socialists running congress.
{"commentId":2610800,"threadId":"341366","contentId":"1792677","authorDomain":"p-ff-ft"}
- 2 votes
{"commentId":2610759,"authorDomain":"parthur169"}
The Bush Administration and the Fed are to blame for this mess by looking the other way when 'red flags' were raised years ago. Lack of regulation, greed, and stupid borrowers got us into this mess. No one is going to fix this mess, except via a likely taxpayer bailout like the S&L Crisis - remember Keating Five?
No taxpayer bailout - let them all go under. Better yet, sell them to the Chinese.
American's are stupid: we borrow money from China to buy oil from people who hate us.
Suck it up, America, and take your medicine.
{"commentId":2610759,"threadId":"341366","contentId":"1792677","authorDomain":"parthur169"}
- 2 votes
#13 - Wed Aug 27, 2008 3:22 PM EDT{"commentId":2613798,"authorDomain":"sharpie52"}
Bush's head is still buried in the sand in Iraq, you know the country we had no business attacking in the first place. Where were the weapons of mass distruction anyway? If Bush did for us what he has done around the world, America would be a strong stable country. I think Bush should be the President in Iraq. Let those people show him how they take care of a president who is not for the people.
{"commentId":2613798,"threadId":"341366","contentId":"1792677","authorDomain":"sharpie52"}
- 1 vote
{"commentId":2610822,"authorDomain":"patzeine"}
All this talk of a mortgage meltdown is just another attempt at the banking industry to get their hands on our tax dollars. If this were real they would stop selling ARM's and the price of homes would come down to affordable levels. IT IS A SCAM PERPETRATED BY THE MORTGAGE INDUSTRY, APPRAISERS, AND REAL ESTATE AGENTS. Let the price of houses come down already especially let them become more affordable there are monied interests still buying houses at bargain prices and too much collusion among real estate agents, appraisers, and mortgage brokers to bilk Americans out of our money.
{"commentId":2610822,"threadId":"341366","contentId":"1792677","authorDomain":"patzeine"}
#14 - Wed Aug 27, 2008 3:26 PM EDT{"commentId":2610838,"authorDomain":"arms71"}
Some lenders are predatory, please look up select portfolio aka fairbanks capitial and others . and look at the CEOs billions of dollars. we need to stop all of this greed.
{"commentId":2610838,"threadId":"341366","contentId":"1792677","authorDomain":"arms71"}
- 2 votes
#15 - Wed Aug 27, 2008 3:26 PM EDT{"commentId":2613823,"authorDomain":"sharpie52"}
Not only are lenders but also lender servicers like Litton Loan and others who say they are saving homes but instead are charging fees which our government agencies are not doing anything about. Why are we paying our taxes - so they would help us not the CEO's and Banks.
{"commentId":2613823,"threadId":"341366","contentId":"1792677","authorDomain":"sharpie52"}
{"commentId":2610877,"authorDomain":"carol217"}
INDYMAC deserves to go under (although I feel sorry for the depositors). They were one of the worst purveyors of the worst subprime loans. I watched as a loan officer in my office continually put customers in these loans and made obscene commissions.
{"commentId":2610877,"threadId":"341366","contentId":"1792677","authorDomain":"carol217"}
- 1 vote
#16 - Wed Aug 27, 2008 3:28 PM EDT{"commentId":2610992,"authorDomain":"manjam99"}
{"commentId":2611018,"authorDomain":"stipping"}
Americans are way too comfortable with a "false" life. Most of us do not live within our means. Many of us are losing jobs and will continue to lose jobs. Never seen an economy (and I use that word loosely) like this in 61 years I've been alive. Too scary. I feel sorry for the young people.
{"commentId":2611018,"threadId":"341366","contentId":"1792677","authorDomain":"stipping"}
- 1 vote
#18 - Wed Aug 27, 2008 3:37 PM EDT{"commentId":2613852,"authorDomain":"sharpie52"}
"False Life" - America is land of the free!!! Free to work toward owning your own home and a piece of the American Pie. It would not be a "False Life" if people were honest. American businessmen have sold away american jobs and taken tax breaks while the American people have been footing the bill. I think they all should be in prison.
{"commentId":2613852,"threadId":"341366","contentId":"1792677","authorDomain":"sharpie52"}
{"commentId":2611056,"authorDomain":"patzeine"}
This whole "mortgage Meltdown" is a scam. Banks are still fueling high prices with untenable ARM's while big money "Real Estate Investors" like Trump and his horde of followers are making housing un-afordable for normal people. Slum lords should have to pay more for thier profits than any other taxable income. The whole thing is a scam bring back squaters rights and homesteading laws.
{"commentId":2611056,"threadId":"341366","contentId":"1792677","authorDomain":"patzeine"}
- 1 vote
#19 - Wed Aug 27, 2008 3:39 PM EDT{"commentId":2613860,"authorDomain":"sharpie52"}
Right on!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
{"commentId":2613860,"threadId":"341366","contentId":"1792677","authorDomain":"sharpie52"}
{"commentId":2617614,"authorDomain":"babe44-1"}
Trump doesn't deal with peons,only hi-rollers.All his properties are hi-end,even the rent is beyond the means of most people.The only peons Trump caters to are those who walk thru his casino doors to drop their money in the slot machines. Not only that,most of the bankers hate him,because he knows how they operate and he doesn't play their games.The bankers he deals with essentially play by the rules he makes. I assume you comment about him is fueled by his hate for Bush and his cronies. At least one big business man hasn't been fooled by that charlatan.
{"commentId":2617614,"threadId":"341366","contentId":"1792677","authorDomain":"babe44-1"}
- 1 vote
{"commentId":2611118,"authorDomain":"patzeine"}
People have to make more income to cover the increased cost of housing. Big companies have kept wages low with foreign workers and a morality that makes the devil look like a good guy. Pay people more and they can start to afford their houses again, I bet that was what they hoped for when they signed up for those ARM's.
{"commentId":2611118,"threadId":"341366","contentId":"1792677","authorDomain":"patzeine"}
#20 - Wed Aug 27, 2008 3:43 PM EDT{"commentId":2611216,"authorDomain":"grinninbarrette"}
There is a multitude of reasons why the economy is in the shape that it is in and there is a multitude of reasons why the housing industry is in the shape it is in. To make a blanket statement that the fault lies with all the people that don't know how to manage their finances is incorrect, although it is a part of the problem. There are thousands of honest, hardworking people who are facing or going through foreclosure and it isn't due to their lack of financial know-how. Unscrupulous banks, mortgage brokers, lenders, loan officers and our Federal government are also to blame for the situation America finds itself in. For years the housing industry was poorly regulated and oversight was non-existent. Hence, the housing industry and the minions working in the industry were allowed to get away with the murder of the market and all associated finances. There is also the segment of honest, hardworking people who are facing or going through foreclosure because of catastrophic events in their lives that are beyond their control. It isn't just one factor and the blame cannot be solely placed on the backs of people living beyond their means. Instead of beyotching and placing blame where it doesn't always belong, get off your hind ends and lobby your congressmen and your public leaders - get out let your voice be heard and try to make a difference. It's easy to sit behind a computer and spew venom, but can you honestly say and believe that it 'will never happen to me?' Never assume and never say never.
{"commentId":2611216,"threadId":"341366","contentId":"1792677","authorDomain":"grinninbarrette"}
#21 - Wed Aug 27, 2008 3:49 PM EDT{"commentId":2611375,"authorDomain":"farky22"}
Quit bailing out these scum-bags we call ceo's because it's a system which has been in the planning for years to milk the system. Fired and imprison the whole bunch( no trial needed ) this is a well thought out plan to get rich off the middle class tax payer. They must think they are the only ones with a brain. WAKE UP AMERICA!!!!!
{"commentId":2611375,"threadId":"341366","contentId":"1792677","authorDomain":"farky22"}
- 2 votes
#22 - Wed Aug 27, 2008 3:59 PM EDT{"commentId":2611383,"authorDomain":"j-whitman"}
Thanks a lot McCain,,,, Your Enron Loophole & concept of No Regulation built into your so-called Finance Reform helped cause this mess
In other news today Bush's appointed Chairman of the SEC has sold out America's accounting standards to big corporations & his foreign interests.... Creating big problems for America, accountability in government & more losses of America's security assets
Republicans continue to sell out America
http://www.nytimes.com/2008/08/28/business/worldbusiness/28audit.html?_r=1&hp&oref=slogin
{"commentId":2611383,"threadId":"341366","contentId":"1792677","authorDomain":"j-whitman"}
- 1 vote
#23 - Wed Aug 27, 2008 4:00 PM EDT{"commentId":2611425,"authorDomain":"chancebauer"}
It isn't just the mortgage brokers fault, it's also the home buyer, banks and appraisers. Brokers would do what ever they could to get the customer into the house (that's kind of their job), including asking appraisers to fudge on the numbers so the customer could get approved for the loan.
Customers would lie about their debt and income, normally this would come up when they have to provide documentation to back everything up but those who received no doc loans more than likely lied their butts off. By the way, a no doc loan is the most absurd thing I have ever heard of. From my understanding they were meant for self employed customers but I'm sure they still had to provide tax filings or some sort of evidence as of to how much they actually made.
I have absolutely no sympathy for the banks at all. They got themselves into this mess knowing full well it was going to eventually blow up in their face but their greed got the best of them. When they are plugging the numbers into the computer, at some point it had to spit out warnings that there was a good chance this loan would go into default based on the information provided. They are idiots and now they want the government to bail them out. They should have a policy that if they do assist the bank, the higher ups must resign, that way they can't screw it up again.
I'm in my early 30's and would like to purchase my first home/condo but because of this whole mess, it is harder to qualify for anything. Now I pretty much have to have $30,000 to $45,000 laying around to even think of getting a place. I reside in the Seattle area and fortunately for owners home prices have not fallen like they have in other areas of the country but that means it is more difficult for the first time buyer, especially if you are in the $50K-$70K bracket and single because property is so expensive.
{"commentId":2611425,"threadId":"341366","contentId":"1792677","authorDomain":"chancebauer"}
#24 - Wed Aug 27, 2008 4:02 PM EDT{"commentId":2611496,"authorDomain":"bbearden"}
The title of this article is a complete misnomer. So convenient how this article transfer blame to the "mortgage mess." The mortgage mess isn't casuing banks to be put at risk. The banks put themselves at risk through loose enforcement of lending policy and human greed by granting anyone walking through their doors with mortgages they damn well knew they could not afford it. I am happy to see many banks going "belly up." Serves them right for what they've done to our country and our economic situation!
{"commentId":2611496,"threadId":"341366","contentId":"1792677","authorDomain":"bbearden"}
- 1 vote
#25 - Wed Aug 27, 2008 4:07 PM EDT{"commentId":2611501,"authorDomain":"techie22"}
Maybe if banks offered a refi at what the
fixed rate would have been at the time
of the original loan with costs at $500,
the number of foreclosures would come to
a halt.
Then if the credit card companies roll back
their rates to what it would be if they didn't
crank them up for a late payment ie: back
to 10% - 15%, then maybe everyone will
stop declaring bankrupcy.
Since the big guys can borrow at about 4%
why do they insist on charging us 27%?
The rapatious business practices encouraged
by this administration are bankrupting all
Americans and devaluing our country so the
Chinese can just step in and buy us.
Why can the banks restructure their debt
but not all the rest of us?
{"commentId":2611501,"threadId":"341366","contentId":"1792677","authorDomain":"techie22"}
- 1 vote
#26 - Wed Aug 27, 2008 4:08 PM EDT{"commentId":2611658,"authorDomain":"lass"}
Hey techie22, can you run for President?
{"commentId":2611658,"threadId":"341366","contentId":"1792677","authorDomain":"lass"}
{"commentId":2611575,"authorDomain":"lass"}
I live outside of New Orleans, having purchased my home after Katrina. Right now I can't even sell my home for what I bought it for! The housing market is going WAY down, and poor suckers like me get screwed! Thanks Bush, should I bend over and take another?
{"commentId":2611575,"threadId":"341366","contentId":"1792677","authorDomain":"lass"}
- 3 votes
#27 - Wed Aug 27, 2008 4:13 PM EDT{"canLink":false,"threadId":"341366","isPrivate":false}
You're in Easy Mode. If you prefer, you can use XHTML Mode instead. |
As a new user, you may notice a few temporary content restrictions. Click here for more info.
Start Tracking
Stop TrackingCOMPANY STUFF:
LEGAL STUFF:
- © 2005-2009 Newsvine, Inc. |
- Newsvine® is a registered trademark of Newsvine, Inc. |
- Newsvine is a property of
