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Thread: Home price drops exceed Great Depression: Zillow

  1. #121
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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by Albert Di Salvo View Post
    Obama's mortgage modification schemes have only prolonged the agony of delinquent borrowers and the real estate market.
    Can you say FDR?
    "He who does not think himself worth saving from poverty and ignorance by his own efforts, will hardly be thought worth the efforts of anybody else." -- Frederick Douglass, Self-Made Men (1872)
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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by MaggieD View Post
    Right now people with good credit can do the most amazing think through FHA financing. Amazing. And scarey.

    Example: Foreclosed home for sale for $160K. Enter a person with good credit who wants to buy it and renovate it. Offer of $150 accepted along WITH a $50,000 immediate advance from the lender to handle remodeling...under supervision of the lender's general contractor. The loans are very difficult to get because banks don't like the idea at all. (Bank says, "If the house is worth $150K, why am I going to give YOU $200K??) So much for lender reform when it's the FHA.
    FHA is only for new homebuyers.
    "He who does not think himself worth saving from poverty and ignorance by his own efforts, will hardly be thought worth the efforts of anybody else." -- Frederick Douglass, Self-Made Men (1872)
    "Fly-over" country voted, and The Donald is now POTUS.

  3. #123
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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by Lord Tammerlain View Post
    Yes that is what the CRA could influence

    However, as the CRA also is in effect in Texas, but Texas did not have a housing boom, something else must have been the reason otherwise Texas would have had it as well.
    not necessarily; the housing bubble was the result of many factors. one of the critical ones for texas was the relative lack land restrictions. Thomas Sowell in particular has done some excellent work highlighting how the worst effects of the bubble (in both directions) are concentrated in areas where local (state or municipal) government has restricted further housing construction for one reason or another.

    The bolded sentance is accurate up to a point, not all loans were sent to the GSE, many were packaged and sold to investors as AAA investments
    yup. good thing the regulators were on top of that one, too, eh?

    oh, wait, regulators are subject to political pressure?

    To those who warned of the risks in the new policies, Congressman Frank replied in 2003 that critics “exaggerate a threat of safety” and “conjure up the possibility of serious financial losses to the Treasury, which I do not see.” Far from being reluctant to promote risky practices, Barney Frank said, “I want to roll the dice a little bit more in this situation.”

    With the federal regulators leaning on banks to make more loans to people who did not meet traditional qualifications — the “underserved population,” in political Newspeak — and quotas being given to Fannie Mae and Freddie Mac to buy more of these riskier mortgages from the original lenders, critics pointed out the dangers in these pressures to meet arbitrary home ownership goals. But Barney Frank attacked these critics.

    In 2004 he said: “I believe that we, as the federal government, have probably done too little rather than too much to push them to meet the goals of affordable housing.” He went farther: “I would like to get Fannie and Freddie more deeply into helping low-income housing.”..


    In 2004 Office of Federal Housing Enterprise Oversight had issued a 211 page report that pointed out the irregularities in Fannie and Freddie's books. In response, Barney Frank (D) and Kit Bond (R) proposed that the Office be replaced...


    dang.
    Last edited by cpwill; 01-21-11 at 06:26 AM.

  4. #124
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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by cpwill View Post
    not necessarily; the housing bubble was the result of many factors. one of the critical ones for texas was the relative lack land restrictions. Thomas Sowell in particular has done some excellent work highlighting how the worst effects of the bubble (in both directions) are concentrated in areas where local (state or municipal) government has restricted further housing construction for one reason or another.
    show us your cite for this analysis ...
    yup. good thing the regulators were on top of that one, too, eh?
    the exposure for fannie mae and freddie mac was due to their purchase of bundled mortgage securities ... often the liar loans ... which the fannie mae/freddie mac regulations would NOT allow them to underwrite
    with privatization of those GSEs - which occurred during the nixon regime - profits of the GSEs were distributed to the shareholders while we can today see that the losses were distributed to the taxpayers. the fannie mae/freddie mac principals were trying to maximize profits by buying the high risk/high return packaged mortgages. again, the kind they were prohibited - by regulation - from underwriting. those weak loans they "invested" in were non-conforming loans. those loans were the ones hardest hit by the meltdown - NOT the fannie mae/freddie mac "conforming" loans. the definition of a 'conforming" loan is one which could be purchased by fannie mae/freddie mac on the secondary market

    oh, wait, regulators are subject to political pressure?
    yep, dicknbush deregulated. regulation was seized upon as something bad, leading to the imprudent efforts to deregulate
    a very stupid, very republican action

    dang.
    i agree. very stupid
    glad you agree

    now to the article by sowell in a reich wing rag. how "honest" of him to place frank's responses in quotes, but to fail to offer up the questions posed, in order to place frank's remarks in context
    goebbels would be proud that his techniques were adopted by an apologist of the republican party
    i see that you parroted the misinformation presented here:
    Fannie Mae and Freddie Mac were crucial to these schemes to force lenders to lend to those whom politicians wanted them to lend to, rather than to those who were most likely to pay them back.
    there was nothing which required lenders to make loans to those without the means to pay
    demand for high return packaged mortgages fueled the risk taking by mortgage lenders. they could - and did - write weak loans and earn a profit on each one. because those mortgages were snapped up to be packaged by a hungry investor market seeking rates above those low yields on safe government securities, those mortgage underwriters sustained no risk. they passed it forward to the investors - while retaining their share of the profits
    that activity was NOT facilitated by CRA
    it was aided by the absence of regulators in a deregulated economy, courtesy of the republican regime
    your boys
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  5. #125
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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by cpwill View Post
    not necessarily; the housing bubble was the result of many factors. one of the critical ones for texas was the relative lack land restrictions. Thomas Sowell in particular has done some excellent work highlighting how the worst effects of the bubble (in both directions) are concentrated in areas where local (state or municipal) government has restricted further housing construction for one reason or another.
    And if I recall correctly Arizona and Florida do not have restrictive land regulations yet had housing bubbles (especially Florida given the vast number of empty development projects) The main point is that without the easy loans and securitization of them the housing bubble would not have occured. Had more states had the same restrictive mortgage requirements that Texas had, the price run up would have been less (as fewer people would have qualified for mortgages)

    yup. good thing the regulators were on top of that one, too, eh?
    Lack of effective regulation


    oh, wait, regulators are subject to political pressure?


    dang.
    And who is Barney Frank?

    Master of the universe, more powerfull then Banking CEOs, the President of the US, 100 senators and all the other congressmen combined?

    The fact that Texas did not have a housing bubble, or a massive increase in subprime loans tends to indicate that the CRA was not the all powerfulll bill forcing banks to make loans they did not want to make. Banks made money by originating the loans and securitizing them. They had little incentive to ensure they would be paid back. The lowering of government standards just allowed the banks to make the loans, while Texas standards prevented that
    Happy Hanukkah Cheerfull Kwanzaa
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  6. #126
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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by Councilman View Post
    Until Obama starts to show same basic understanding of the facts about what is needed the economy will continue to suck.

    So far nothing he or any of his disciples have come up with has really worked and until he learns that his amateurs need to be replaced by people with some real business management talent and experience a mind set that contributes so much to the problem with despair will continue.

    Until people feel better about the direction we are going in economically they are not going to be spending and job numbers will continue to suffer for it.
    Obama? Wasn't it the last administration that put the economy on the brink of total collapse?
    How soon they forget.....
    Last edited by Dirty Harry; 01-22-11 at 08:48 PM.

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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by Dirty Harry View Post
    Obama? Wasn't it the last administration that put the economy on the brink of total collapse?
    How soon they forget.....
    This housing debacle got its start with Bill Clinton, like it or not.
    The devil whispered in my ear, "You cannot withstand the storm." I whispered back, "I am ​the storm."

  8. #128
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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by MaggieD View Post
    This housing debacle got its start with Bill Clinton, like it or not.
    The housing bubble could have never happened without Bush's push to get everyone to own their own home(ownership society) and Greenspans interest rate cuts. There was a recession in 2001, No bubble before that. It all happened after the '01 recession. New home construction almost doubled between '01 and '06. That is a fact. That was the bubble.

    Last edited by Dirty Harry; 01-23-11 at 01:12 AM.

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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by justabubba View Post
    show us your cite for this analysis ...

    the exposure for fannie mae and freddie mac was due to their purchase of bundled mortgage securities ... often the liar loans ... which the fannie mae/freddie mac regulations would NOT allow them to underwrite
    with privatization of those GSEs - which occurred during the nixon regime - profits of the GSEs were distributed to the shareholders while we can today see that the losses were distributed to the taxpayers. the fannie mae/freddie mac principals were trying to maximize profits by buying the high risk/high return packaged mortgages. again, the kind they were prohibited - by regulation - from underwriting. those weak loans they "invested" in were non-conforming loans. those loans were the ones hardest hit by the meltdown - NOT the fannie mae/freddie mac "conforming" loans. the definition of a 'conforming" loan is one which could be purchased by fannie mae/freddie mac on the secondary market


    yep, dicknbush deregulated. regulation was seized upon as something bad, leading to the imprudent efforts to deregulate
    a very stupid, very republican action


    i agree. very stupid
    glad you agree

    now to the article by sowell in a reich wing rag. how "honest" of him to place frank's responses in quotes, but to fail to offer up the questions posed, in order to place frank's remarks in context
    goebbels would be proud that his techniques were adopted by an apologist of the republican party
    i see that you parroted the misinformation presented here:
    there was nothing which required lenders to make loans to those without the means to pay
    demand for high return packaged mortgages fueled the risk taking by mortgage lenders. they could - and did - write weak loans and earn a profit on each one. because those mortgages were snapped up to be packaged by a hungry investor market seeking rates above those low yields on safe government securities, those mortgage underwriters sustained no risk. they passed it forward to the investors - while retaining their share of the profits
    that activity was NOT facilitated by CRA
    it was aided by the absence of regulators in a deregulated economy, courtesy of the republican regime
    your boys
    So you totally disregard the efforts of the Clinton economic tem of Rubin,Summers and Greenspan from any accountability? It might fit your partisan narrative but they killed regulation of the derivative market. That in turn allows banks to "offload" the risk and thus capital requirements for these lousy loans. It is interesting that Summers and Geithner who was an undersecretary for Rubin then found their way into the next deomocratic administration.

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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by Lord Tammerlain View Post
    And who is Barney Frank?
    he's the former chair of house financial services who, responsible for oversight of the floundering f's, assured america they were "fundamentally sound"

    What They Said About Fan and Fred - WSJ.com

    of course, bawney's not alone

    meanwhile, friday:

    My Way News - Home sales hit 13-year low; slow recovery ahead

    still no basement in sight

    moody's forecasts 5% fewer sales in 2011

    republicans are gonna air fannie and fred in hearings

    republicans are then gonna put forth their reform

    remember, obama's reg bill EXEMPTS the failed f's, why?

    Democrats block reform of corrupt mortgage giants; Fannie Mae and Freddie Mac to get billions more - Washington DC SCOTUS | Examiner.com

    instead, the white house keeps injecting billions more into the upside down and drowning lenders

    republicans will NOT exempt fannie and fred

    stay up

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