2007-09-03 14:16:14 · 5 answers · asked by Anonymous in Business & Finance ➔ Credit
No.
The market will adjust on it's own there is no reason for the Government to get involved.
2007-09-04 02:56:28 · answer #1 · answered by ? 7 · 0⤊ 0⤋
If you're talking about the loans you see advertised on tv by Gary Coleman where the interest rates are 99% (no lie), then yes, they should totally be illegal. Also, those agencies where they give you an "advance" on your paycheck and charge you ridiculous interest rates should be illegal. It's taking complete advantage of people who obviously DON'T have money because they approve everyone. That puts people who think they're in a tough spot now in an even tougher spot because their loan will take FOREVER to pay off and they'll be paying back much, much more than they originally borrowed.
If you're talking about home loans, then that's different. If you needed perfect credit to buy a house, there would be very few homeowners out there and everyone would be renting, making the rich richer.
2007-09-03 15:15:30 · answer #2 · answered by Amber D 3 · 1⤊ 0⤋
I'm not entirely sure what you are asking. The housing market needs sub-prime borrowers. Not everyone has a 815 credit score, and not everyone can come up with 15-20% down payment.
So should all sub-prime loans be illegal. Absolutely not.
Just proper qualification procedures should be followed. People who work hard for a living, have and steady job, have a good work history, no criminal record should be able to get a loan.
2007-09-03 14:36:31 · answer #3 · answered by Jon 5 · 0⤊ 1⤋
I do think that these high risk loans have created such crisis that many lender that specialized in the area of the mortgage industry are out of business or have tightened their guidelines so much that they now represent a much, much smaller percentage of loans closed. Not going to see 100%LTV with poor credit, going to see less higher risk properties like manufactured loans associated with sub-prime, foreign national have also seen sharp decline as the required down payments get higher. It doesn't have to be illegal, it doesn't sell on the secondary market, no one's going to touch it.
2007-09-03 15:40:35 · answer #4 · answered by Etta P 4 · 0⤊ 0⤋
Lots of things fall into the sub prime category.
It isn't the sub prime that's the problem. It's the folks who could not afford the house and the broker's who found all that "creative" financing for them. The mortgage crisis just started at the sub prime level. It's moving on up the line.
2007-09-03 14:27:42 · answer #5 · answered by bdancer222 7 · 0⤊ 1⤋