What caused the mortgage system to collapse?

[jtemple]

http://www.youtube.com/watch?v=H5tZc8oH--o

[Mr Lefty]

interesting....

[mtp]

afirmitive action and stupidity.............AKA libs

[PiZdETS]

hahaha horseshit. ZOMG IT WAS THE DEMOCRATS THEY RUINED EVERYTHING...EVEN THOUGH...IT WAS THE REPUBLICANS WHO WERE IN POWER WHEN IT HAPPENED...

Lenders got greedy and found a way to up their stock prices by the sheer number of loans they approved, not considering whether the loans were tenable or not. Some ceo's got amazingly rich while slowly but surely the foundation of sketchy loans started crumbling as, surprise! people who make $14 an hour couldn't make payments on their $300,000 house. And the more people who defaulted on their loans, the more the banks had to up payments for the house owners who were still paying (part of the low priced mortgage scam was the ability of banks to increase interest or monthly payments anytime they wanted) which caused even more homeowners to default, vicous cycle, etc etc etc.
This whole scheme was ignited by the power and prevalence of internet based mortgage firms who would get underwritten by the big banks.

In summation, the problem is the internet and secret illuminati jewish run group of bankers who controls everything and secretly wants the downfall of civilization.. hey wait...is that a sniper outside my window......

OH SHI-

[NONE_too_SOFT]

did you just get shot by a sniper?

[OneSickPsycho]

Originally Posted by PiZdETS

hahaha horseshit. ZOMG IT WAS THE DEMOCRATS THEY RUINED EVERYTHING...EVEN THOUGH...IT WAS THE REPUBLICANS WHO WERE IN POWER WHEN IT HAPPENED...

Lenders got greedy and found a way to up their stock prices by the sheer number of loans they approved, not considering whether the loans were tenable or not. Some ceo's got amazingly rich while slowly but surely the foundation of sketchy loans started crumbling as, surprise! people who make $14 an hour couldn't make payments on their $300,000 house. And the more people who defaulted on their loans, the more the banks had to up payments for the house owners who were still paying (part of the low priced mortgage scam was the ability of banks to increase interest or monthly payments anytime they wanted) which caused even more homeowners to default, vicous cycle, etc etc etc.
This whole scheme was ignited by the power and prevalence of internet based mortgage firms who would get underwritten by the big banks.

In summation, the problem is the internet and secret illuminati jewish run group of bankers who controls everything and secretly wants the downfall of civilization.. hey wait...is that a sniper outside my window......

OH SHI-

Nice try... The law went into effect on January 31st, 1995... 28 days after the Reps took Congress... I'll buy you a cookie if you can tell me the date the Dems actually voted the CRA of 1995 in.

[PiZdETS]

Originally Posted by OneSickPsycho

Nice try... The law went into effect on January 31st, 1995... 28 days after the Reps took Congress... I'll buy you a cookie if you can tell me the date the Dems actually voted the CRA of 1995 in.

January 1st, chocolate chip macadamia nut plz.
And it was the Bush administration changes of July and September 05 which redefined what was considered a "small" or "intermediate small" sized bank and decreased regulation of those institutions, allowing little to no oversight for a lot of banks giving loans.
But I don't think the CRA acts have as much to do with this as you think and many economists agree with me. Blaming the government for an economic downturn is a knee jerk liberal move my good sir, this comes down to personal responsibility and the responsibility is on all the dumb fucks signing up for loans they couldn't possibly pay for long term and the banks for giving our mortgages like lollipops just to boost their stock prices.

[jtemple]

I agree about the personal responsibility thing. I bought my house during all of this crap, and am still in it, happily making payments on my fixed rate mortgage. Although, the lenders tried to talk me into variable rate loans, and interest-only loans, which I declined.

[PiZdETS]

Originally Posted by jtemple

I agree about the personal responsibility thing. I bought my house during all of this crap, and am still in it, happily making payments on my fixed rate mortgage. Although, the lenders tried to talk me into variable rate loans, and interest-only loans, which I declined.

Exactly. If you're dumb enough to think "hmmm what could possibly be the downside to signing up for a loan in which the monthly payment can increase hugely at the whims of my lender?" then you deserve to be homeless on the street.
Economic Darwinism; the stupid get scammed.

Unfortunately now it looks like we're going to have to foot the bill for this clusterfuck. And both the candidates support it! For shame, I tell you, for shame!

[OneSickPsycho]

Originally Posted by PiZdETS

January 1st, chocolate chip macadamia nut plz.
And it was the Bush administration changes of July and September 05 which redefined what was considered a "small" or "intermediate small" sized bank and decreased regulation of those institutions, allowing little to no oversight for a lot of banks giving loans.
But I don't think the CRA acts have as much to do with this as you think and many economists agree with me. Blaming the government for an economic downturn is a knee jerk liberal move my good sir, this comes down to personal responsibility and the responsibility is on all the dumb fucks signing up for loans they couldn't possibly pay for long term and the banks for giving our mortgages like lollipops just to boost their stock prices.

BS... Housing prices started to go up as much as 10% per year in the late 90's due to the abundance of 'newly qualified' (re: NOT QUALIFIED) homebuyers...

However, I agree 100% with the notion that it's a personal responsibility issue.