Banks are no longer giving loans to low income families

[tigerred59]

Banks are walking away from low-income home buyers.....leaving high interest, high yield, ie financial predators to pick up the slack... Non-banks have doubled down on volume — particularly through refinances — and now originate 56% of all home loans, according to the CFPB data.

So much for bailing out the banks, bailing out the auto industry which plans to stop making cars and place focus on gas guzzling trucks and SUV's....tax payers get fucked again!!

So lenders aren't repeating the mistakes that caused the issues in 2008-2009? Wow. What a concept. This thread just proves which party was really at fault then. Let's loan money to people who can't pay it back. smh

Dude, I want to give you facts....first time homeowners were doing quite fine under the housing act enacted by congress, it was the greed of the lending industry that sunk that ship...listen, we've discussed this shit threads ago and I'm not going to argue with you...but you need to research your bullshit and get on team real.

 

[tigerred59]

So, banks aren't handing out money to people who can't repay it?


What an outrage!

If we're in a jobs boom and unemployment at a all time low, something don't seem right......ya think

 

[tigerred59]

It's never a good idea to lend money to anyone who can't pay it back

Correct.

Even when the applicant's longtime credit history is solid as a rock? A lower but still adequate income still won't qualify? If that's the case, the US of A is fucked as a whole. This practice will spill out over all echelons of the financial spread. You gut the homebuyer's market, you gut the American economy in short order. I see the masters of wisdom in politics are at it again.

The primary elements of a loan are credit history and the ability to pay (which includes income amount, job stability and income to debt service ratio).

This isn't that complicated. It was the combination of subprime mortgages and a complete lack of regulation of the derivatives that supported/enabled them that were at the heart of the Meltdown in 2008.

We either maintain standards or we get what we deserve. Evidently we somehow haven't learned that yet.
.

What caused the melt down, team real here.....was the greed of lenders......low income home owners were doing quite well prior to subprime lenders coming in for the kill. 90 year old home owners taking out second mortgages on homes already paid for. The banks were the one's taking on high risk and its our fault??? Get the fuck outta here.

 

[Skull Pilot]

If his income, credit score and more importantly his debt to income ratio were deemed adequate and he had a sufficient down payment he would have got a loan.

It has nothing to do with politics and everything to do with not losing money

Keep telling yourself that and it'll all be fine. Mmm hmmm. I'm telling you the banks are freezing loans to any but people who have enough liquid assets to finance the loan themselves. You don't see that as problematic. You see the economy as independent fragments.

Funny how I had no trouble getting 2 construction loans in the past 3 years and I didn't have the liquid assets to cover the loans.
What I did have was a very high credit score, a very low debt to income ratio and the income to prove I could pay the loans off.

There is no sense in taking unnecessary risk when lending money.

I could explain to you that being a WHITE MAN, kinda gets you through the door, but you wouldn't understand.

Yeah if I didn't have an 820 credit score , proof of down payment and proof of income I would not have gotten the loans

If I had all those things and was Black I still would have gotten the loan.

 

[Skull Pilot]

Funny how I had no trouble getting 2 construction loans in the past 3 years and I didn't have the liquid assets to cover the loans.
What I did have was a very high credit score, a very low debt to income ratio and the income to prove I could pay the loans off.

There is no sense in taking unnecessary risk when lending money.

Good for you. You are a rarer and rarer bird these days. I saw many families go right from where you are to "not qualifying" because jobs disappeared along with the housing industry/sales. I'm sure the economy can still balance on the backs of the white rhino.

If they lost their jobs why on earth were they applying for a loan?

 

[Mac1958]

It's never a good idea to lend money to anyone who can't pay it back

Correct.

Even when the applicant's longtime credit history is solid as a rock? A lower but still adequate income still won't qualify? If that's the case, the US of A is fucked as a whole. This practice will spill out over all echelons of the financial spread. You gut the homebuyer's market, you gut the American economy in short order. I see the masters of wisdom in politics are at it again.

The primary elements of a loan are credit history and the ability to pay (which includes income amount, job stability and income to debt service ratio).

This isn't that complicated. It was the combination of subprime mortgages and a complete lack of regulation of the derivatives that supported/enabled them that were at the heart of the Meltdown in 2008.

We either maintain standards or we get what we deserve. Evidently we somehow haven't learned that yet.
.

What caused the melt down, team real here.....was the greed of lenders......low income home owners were doing quite well prior to subprime lenders coming in for the kill. 90 year old home owners taking out second mortgages on homes already paid for. The banks were the one's taking on high risk and its our fault??? Get the fuck outta here.

What the banks & lenders did was insane and a lot of people should have gone to jail, but didn't.

That doesn't mean they should do dumb things now.
.

 

[DigitalDrifter]

We saw in the late 2000's what happens when you give home loans to people who will inevitably get foreclosed on.
Let's not go down that road again.

 

[Votto]

Banks are walking away from low-income home buyers.....leaving high interest, high yield, ie financial predators to pick up the slack... Non-banks have doubled down on volume — particularly through refinances — and now originate 56% of all home loans, according to the CFPB data.

So much for bailing out the banks, bailing out the auto industry which plans to stop making cars and place focus on gas guzzling trucks and SUV's....tax payers get fucked again!!

How are we to create another financial melt down unless we start giving loans to folks that can't pay?

 

[Claudette]

I don't expect lenders to make high risk loans.

Neither do I. Used to be to get a loan to buy a house you had to have a substantial bit of cash or the bank wouldn't even look at you.

Just think of the low income folks who bought houses through Fannie and Freddie then when they couldn't pay they just walked away.

Only a dumb bank would produce a mortgage to someone who obviously doesn't have the means to pay.

 

[Pete7469]

What the banks & lenders did was insane and a lot of people should have gone to jail, but didn't.

That doesn't mean they should do dumb things now.
.

They did it at gun point.

The government, acting on behalf of leftist parasites like the OP, forced banks to make shitty loans.

If anyone should have went to prison, it should be congress critters.

Now that the guns aren't being wielded by idiots advancing the Cloward/Piven agenda banks don't have to throw money into a "blue wave".

 

[Mac1958]

What the banks & lenders did was insane and a lot of people should have gone to jail, but didn't.

That doesn't mean they should do dumb things now.
.

They did it at gun point.

The government, acting on behalf of leftist parasites like the OP, forced banks to make shitty loans.

If anyone should have went to prison, it should be congress critters.

Now that the guns aren't being wielded by idiots advancing the Cloward/Piven agenda banks don't have to throw money into a "blue wave".

The government didn't force the banks to create shit box CMO's and CDO's.

The government didn't force the mortgage companies to package shit loans, collect huge fees and sell them off their books.

The government didn't force AIG to write hundreds of billions in swaps and synthetic swaps with zero (0) reserves.

The government didn't force the ratings agencies to give Treasury-level AAA ratings to the shit box CMO's.

The government didn't force the banks to SHORT the VERY SAME shit box CMO's and CDO's that they were selling.

The government didn't force Alan Greenspan to steadfastly refuse to regulate any of the above financial atrocities.

None of the above had anything to do with the government, and it was all at the heart of the Meltdown.
.