Comments on: Do you know who forced the lenders to make all of the bad loans? http://lendingproguide.com/do-you-know-who-forced-the-lenders-to-make-all-of-the-bad-loans/ Free Consumer Lending Resource Fri, 18 May 2012 10:31:36 +0000 http://wordpress.org/?v=2.7 hourly 1 By: 2blessedby3 http://lendingproguide.com/do-you-know-who-forced-the-lenders-to-make-all-of-the-bad-loans/comment-page-1/#comment-488 2blessedby3 Sat, 13 Jun 2009 19:09:21 +0000 http://lendingproguide.com/do-you-know-who-forced-the-lenders-to-make-all-of-the-bad-loans/409/#comment-488 Who ever it was, they were very, very, greedy, and guess what it backfired, not only are people losing their homes, but their jobs, and taking their lives, so sad and shame to them who ever they are. Who ever it was, they were very, very, greedy, and guess what it backfired, not only are people losing their homes, but their jobs, and taking their lives, so sad and shame to them who ever they are.

]]> By: SlimMick http://lendingproguide.com/do-you-know-who-forced-the-lenders-to-make-all-of-the-bad-loans/comment-page-1/#comment-487 SlimMick Thu, 11 Jun 2009 08:10:22 +0000 http://lendingproguide.com/do-you-know-who-forced-the-lenders-to-make-all-of-the-bad-loans/409/#comment-487 This is a forum for questions on credit...not political rants...but since you brought up this issue: GOP ex-senator Phil Graham introduced the The Gramm-Leach-Bliley Act, passed under GOP control, which gutted New Deal banking regulations...which contributed to the collapse. This legislation allowed banks to create mortgage-based securities for these sub-prime loans...This is where the funding came from. It was the collapse of these risky financial instruments that brought BearStearns (and others) down. This is a forum for questions on credit…not political rants…but since you brought up this issue: GOP ex-senator Phil Graham introduced the The Gramm-Leach-Bliley Act, passed under GOP control, which gutted New Deal banking regulations…which contributed to the collapse.

This legislation allowed banks to create mortgage-based securities for these sub-prime loans…This is where the funding came from. It was the collapse of these risky financial instruments that brought BearStearns (and others) down.

]]> By: Pooky http://lendingproguide.com/do-you-know-who-forced-the-lenders-to-make-all-of-the-bad-loans/comment-page-1/#comment-486 Pooky Tue, 09 Jun 2009 03:05:00 +0000 http://lendingproguide.com/do-you-know-who-forced-the-lenders-to-make-all-of-the-bad-loans/409/#comment-486 And those who bought those homes were hoping that the price would go up--and at one time, they were going up.. and they can sell them to make a profit. Well we know what happened. And those who bought those homes were hoping that the price would go up–and at one time, they were going up.. and they can sell them to make a profit.

Well we know what happened.

]]> By: Bobby C http://lendingproguide.com/do-you-know-who-forced-the-lenders-to-make-all-of-the-bad-loans/comment-page-1/#comment-485 Bobby C Mon, 08 Jun 2009 02:36:03 +0000 http://lendingproguide.com/do-you-know-who-forced-the-lenders-to-make-all-of-the-bad-loans/409/#comment-485 No one "forced" them to make the bad loans. It was, however, likely the fault of the mortgage brokers. They charged fees in points to people with riskier backgrounds. They made these points as profits and then sold a group of these loans to banks and investors. The investors pay a fee and also pay for the loans. In so doing they allowed the mortgage lenders to write more loans. This keeps going until people aren't getting paid and no one is buying paper either because they don't have the money from the incoming payments or because they have people defaulting and they have to foreclose and now they own the mortgage paper and the title to the home. Dems or Republicans were not responsible for forcing it but our elected officials are accused with some pretty damning evidence that they ignored what was going on until it was too late. No one “forced” them to make the bad loans. It was, however, likely the fault of the mortgage brokers. They charged fees in points to people with riskier backgrounds. They made these points as profits and then sold a group of these loans to banks and investors. The investors pay a fee and also pay for the loans. In so doing they allowed the mortgage lenders to write more loans. This keeps going until people aren’t getting paid and no one is buying paper either because they don’t have the money from the incoming payments or because they have people defaulting and they have to foreclose and now they own the mortgage paper and the title to the home.

Dems or Republicans were not responsible for forcing it but our elected officials are accused with some pretty damning evidence that they ignored what was going on until it was too late.

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