I read a blog by a guy he is downing Mrs Clinton for proposeing a bill that would help arm borrowers why?

Question

The houseing market stinks ,subprime lenders got caught up in the crunch and now they are going to pay ,mortgage brokers were money motivated,than some one comes along and try to help the homeowner and they get detested.why

Answer 1

I have to disagree with Gregorio. mortgage brokers were very money motivated, and pushed sub-prime loans and pushed appraisers to over inflate values or they would pull the business away from the appraiser and not send orders, I know because I have lost most of my business, because I would not over inflate values on appraisals. He said Mortgage brokers did not create these programs such as interest only loans, ARMs, neg ams, or option ARMs, stated loans, no doc loans, no income no asset loans, the lenders did, but they sure pushed them and as far as making more money on a FHA loan most of the sub prime would not qualify for a FHA loan. why should the Goverment save the homes of people that have poor credit and bought a house with a loan they can't afford.

Answer 2

Cr is correct. During an overinflated market like the one we just had where everyone who could breathe was buying, people were taking crappy ARM's and interest only mortgages. There should be NO government assistance. People should take responsibility for their own financial mistakes. The housing market stinks for sellers not for buyers. There is usually never a buyer/seller market at the same time.

Answer 3

I don't know why the blogger disagreed with Hillary Clinton, but I disagree with helping ARM borrowers also, and here's why:

The entire ARM fraud was created by real estate agents, appraisers, mortgage banks and investment banks, working together, to inflate prices. Each person in the chain got a chunk of change from this fraud. At present, the person holding the bag is the person with the mortgage, who probably cannot afford it, and who has learned that his/her house isn't worth nearly what they agreed to pay for it.

So if HC or anybody else decides to help these people out, they are also supporting hyper-inflated housing prices, and a financial industry that engaged in wholesale fraud against the American people and literally against the international banking industry (banks and investment companies worldwide invested in fraudulent mortgage-based securities).

There was no crunch; many economists have been warning FOR YEARS that the housing markets across the U.S. were overpriced, overheated, and probably full of fraudulent underwriting. Nobody wanted to listen, because they were too busy stuffing their pockets full of money.

There is no easy or painless solution to this. But ultimately, I think people who can't afford their mortgages should walk away from them, and I think the people (mostly in banks and mortgage and investment companies) who created these mortgages should take the fall for them. There is so much money involved in these mortgages, that if the government got involved (remember, the gov't is you and me), that we will still pay for it in some way, not very long down the road.

Many of the people who "bought" houses did so on fraudulent terms, such as "no-document" loans, or loan applications in which nearly all the data was fudged. I do not think that people should be given money in order to retain houses that they cannot afford, and that they obtained through dishonesty. For the sake of the American economy and the future affordability of housing, prices must come down. And the only way for prices to come down is to let them fall. And the only way they will fall is if we quit trying to prop up the current mess.

Answer 4

I can understand that blogger's feelings. While the lenders marketed ARM loans like mad, and took on ridiculous risk, the folks who borrowed that money agreed to it. While the lenders were not bright in offering such deals, the borrowers were not very bright either, and agreed to these silly mortgage contracts.

What you're saying is that we should help fix 'stupid'. I tend to disagree.

Answer 5

Because it's wrong for ME (via my tax dollars) to have to bail out stupid people, that's why!

I STILL can't buy a house, but I was smart enough not to get into some gimmicky home loan like all these morons..
All the people who are losing their houses now, went into it with their eyes wide open.
It's their fault.
It's not my fault.
It's not the government's fault.
It's not the lenders fault.

It's MY MONEY that will be used to bail them out, and I still won't be able to buy a house!
The government is not Santa Claus.

Answer 6

Because this has to be paid for somehow and the main way they are proposing to do it is to reduce or eliminate the capital gains tax exclusion for homeowners when they sell (the 250,000 for single people and 500,000 for married people currently). This penalizes the people who were responsible for the people who weren't. Doesn't seem like a good deal for people who are responsible (most of us).

good luck!

Answer 7

Republicans view the large number of foreclosures as part of their plan to suppress the Middle Class.