In hindsight, who is most to blame for the Financial Crisis?

[SK in CV]

[quote=Hobie]Don’t forget President Carter started with mandates to provide non discrimination and affordable housing in 1978(?). This, I believe is the tip of the arrow which got this snowball rolling.

[/quote]

Seriously? How so? Did it also create the S&L crisis in the late 80’s and the subsequent real estate bubble burst of the early 90’s? If you think non-descrimination policies are a bad thing, do you think discrimination is a good thing?

[briansd1]

[quote=Hobie]Don’t forget President Carter started with mandates to provide non discrimination and affordable housing in 1978(?). This, I believe is the tip of the arrow which got this snowball rolling.

[/quote]

How did non-discrimination and affordable housing programs result in higher defaults?

Do you have any data to back this up?

For example are Veterans more likely to default? Further are Black Veterans even more likely than white veterans to default?

It’s true that there was a lot of fraud in this program because VA loans were automatically assumable (they no longer are since 1988, so they did not contribute to this crisis). Unscrupulous sellers would find a veteran to buy. The Veteran would then sell the house to a non-veteran who would then be more likely default.

Actually, loans that defaulted in this most recent crisis were issued in the private markets, outside of government programs, because loans such as FHA were considered too troublesome to originate.

Now FHA are a much larger share of originations.

[briansd1]

[quote=Hobie]Don’t forget President Carter started with mandates to provide non discrimination and affordable housing in 1978(?). This, I believe is the tip of the arrow which got this snowball rolling.

[/quote]

How did non-discrimination and affordable housing programs result in higher defaults?

Do you have any data to back this up?

For example are Veterans more likely to default? Further are Black Veterans even more likely than white veterans to default?

It’s true that there was a lot of fraud in this program because VA loans were automatically assumable (they no longer are since 1988, so they did not contribute to this crisis). Unscrupulous sellers would find a veteran to buy. The Veteran would then sell the house to a non-veteran who would then be more likely default.

Actually, loans that defaulted in this most recent crisis were issued in the private markets, outside of government programs, because loans such as FHA were considered too troublesome to originate.

Now FHA are a much larger share of originations.

[briansd1]

[quote=Hobie]Don’t forget President Carter started with mandates to provide non discrimination and affordable housing in 1978(?). This, I believe is the tip of the arrow which got this snowball rolling.

[/quote]

How did non-discrimination and affordable housing programs result in higher defaults?

Do you have any data to back this up?

For example are Veterans more likely to default? Further are Black Veterans even more likely than white veterans to default?

It’s true that there was a lot of fraud in this program because VA loans were automatically assumable (they no longer are since 1988, so they did not contribute to this crisis). Unscrupulous sellers would find a veteran to buy. The Veteran would then sell the house to a non-veteran who would then be more likely default.

Actually, loans that defaulted in this most recent crisis were issued in the private markets, outside of government programs, because loans such as FHA were considered too troublesome to originate.

Now FHA are a much larger share of originations.

[briansd1]

[quote=Hobie]Don’t forget President Carter started with mandates to provide non discrimination and affordable housing in 1978(?). This, I believe is the tip of the arrow which got this snowball rolling.

[/quote]

How did non-discrimination and affordable housing programs result in higher defaults?

Do you have any data to back this up?

For example are Veterans more likely to default? Further are Black Veterans even more likely than white veterans to default?

It’s true that there was a lot of fraud in this program because VA loans were automatically assumable (they no longer are since 1988, so they did not contribute to this crisis). Unscrupulous sellers would find a veteran to buy. The Veteran would then sell the house to a non-veteran who would then be more likely default.

Actually, loans that defaulted in this most recent crisis were issued in the private markets, outside of government programs, because loans such as FHA were considered too troublesome to originate.

Now FHA are a much larger share of originations.

[briansd1]

[quote=Hobie]Don’t forget President Carter started with mandates to provide non discrimination and affordable housing in 1978(?). This, I believe is the tip of the arrow which got this snowball rolling.

[/quote]

How did non-discrimination and affordable housing programs result in higher defaults?

Do you have any data to back this up?

For example are Veterans more likely to default? Further are Black Veterans even more likely than white veterans to default?

It’s true that there was a lot of fraud in this program because VA loans were automatically assumable (they no longer are since 1988, so they did not contribute to this crisis). Unscrupulous sellers would find a veteran to buy. The Veteran would then sell the house to a non-veteran who would then be more likely default.

Actually, loans that defaulted in this most recent crisis were issued in the private markets, outside of government programs, because loans such as FHA were considered too troublesome to originate.

Now FHA are a much larger share of originations.

[Hobie]

Hold on guys. Put your guns down. The intent of the policy was to encourage banks to lend to folks who didn’t qualify under the current terms. ie. 20% down, income to prove loan repayment, etc.

The administration looked at the banks lending policies as ethnic discrimination rather than based on financial ability to repay.

The problems were the unintended consequences from this noble policy.

[Hobie]

Hold on guys. Put your guns down. The intent of the policy was to encourage banks to lend to folks who didn’t qualify under the current terms. ie. 20% down, income to prove loan repayment, etc.

The administration looked at the banks lending policies as ethnic discrimination rather than based on financial ability to repay.

The problems were the unintended consequences from this noble policy.

[Hobie]

Hold on guys. Put your guns down. The intent of the policy was to encourage banks to lend to folks who didn’t qualify under the current terms. ie. 20% down, income to prove loan repayment, etc.

The administration looked at the banks lending policies as ethnic discrimination rather than based on financial ability to repay.

The problems were the unintended consequences from this noble policy.

[Hobie]

Hold on guys. Put your guns down. The intent of the policy was to encourage banks to lend to folks who didn’t qualify under the current terms. ie. 20% down, income to prove loan repayment, etc.

The administration looked at the banks lending policies as ethnic discrimination rather than based on financial ability to repay.

The problems were the unintended consequences from this noble policy.

[Hobie]

Hold on guys. Put your guns down. The intent of the policy was to encourage banks to lend to folks who didn’t qualify under the current terms. ie. 20% down, income to prove loan repayment, etc.

The administration looked at the banks lending policies as ethnic discrimination rather than based on financial ability to repay.

The problems were the unintended consequences from this noble policy.

[briansd1]

[quote=Hobie]Hold on guys. Put your guns down. The intent of the policy was to encourage banks to lend to folks who didn’t qualify under the current terms. ie. 20% down, income to prove loan repayment, etc.
[/quote]

20% down are conventional loans. Anything less needs PMI.

The lenders came up with schemes like piggyback, and the other toxic loans which were then sold and packaged as securities.

The government didn’t have a hand in forcing the lenders to make any loans they didn’t want to originate.

The government didn’t have a hand in forcing the banks to overlook the banks’ own underwriting guidelines.

The banks come up with the loose lending schemes on their own because they could originate more loans and package more securities as AAA. The rating agencies played along.

The Federal Reserve didn’t monitor the banks as it should have.

[quote=Hobie]
The administration looked at the banks lending policies as ethnic discrimination rather than based on financial ability to repay.
[/quote]

It’s not true that ethnic minorities defaulted at a greater rate, if that’s what you’re implying.

[briansd1]

[quote=Hobie]Hold on guys. Put your guns down. The intent of the policy was to encourage banks to lend to folks who didn’t qualify under the current terms. ie. 20% down, income to prove loan repayment, etc.
[/quote]

20% down are conventional loans. Anything less needs PMI.

The lenders came up with schemes like piggyback, and the other toxic loans which were then sold and packaged as securities.

The government didn’t have a hand in forcing the lenders to make any loans they didn’t want to originate.

The government didn’t have a hand in forcing the banks to overlook the banks’ own underwriting guidelines.

The banks come up with the loose lending schemes on their own because they could originate more loans and package more securities as AAA. The rating agencies played along.

The Federal Reserve didn’t monitor the banks as it should have.

[quote=Hobie]
The administration looked at the banks lending policies as ethnic discrimination rather than based on financial ability to repay.
[/quote]

It’s not true that ethnic minorities defaulted at a greater rate, if that’s what you’re implying.

[briansd1]

[quote=Hobie]Hold on guys. Put your guns down. The intent of the policy was to encourage banks to lend to folks who didn’t qualify under the current terms. ie. 20% down, income to prove loan repayment, etc.
[/quote]

20% down are conventional loans. Anything less needs PMI.

The lenders came up with schemes like piggyback, and the other toxic loans which were then sold and packaged as securities.

The government didn’t have a hand in forcing the lenders to make any loans they didn’t want to originate.

The government didn’t have a hand in forcing the banks to overlook the banks’ own underwriting guidelines.

The banks come up with the loose lending schemes on their own because they could originate more loans and package more securities as AAA. The rating agencies played along.

The Federal Reserve didn’t monitor the banks as it should have.

[quote=Hobie]
The administration looked at the banks lending policies as ethnic discrimination rather than based on financial ability to repay.
[/quote]

It’s not true that ethnic minorities defaulted at a greater rate, if that’s what you’re implying.

[briansd1]

[quote=Hobie]Hold on guys. Put your guns down. The intent of the policy was to encourage banks to lend to folks who didn’t qualify under the current terms. ie. 20% down, income to prove loan repayment, etc.
[/quote]

20% down are conventional loans. Anything less needs PMI.

The lenders came up with schemes like piggyback, and the other toxic loans which were then sold and packaged as securities.

The government didn’t have a hand in forcing the lenders to make any loans they didn’t want to originate.

The government didn’t have a hand in forcing the banks to overlook the banks’ own underwriting guidelines.

The banks come up with the loose lending schemes on their own because they could originate more loans and package more securities as AAA. The rating agencies played along.

The Federal Reserve didn’t monitor the banks as it should have.

[quote=Hobie]
The administration looked at the banks lending policies as ethnic discrimination rather than based on financial ability to repay.
[/quote]

It’s not true that ethnic minorities defaulted at a greater rate, if that’s what you’re implying.

[Author]

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