Redstate

There is just way too much that a lender has to disclose for it to be predatory. Besides, why would a bank want a loan that they know they won't get paid back?

I had to give up my left n.....had to do alot of paper work and the numbers are all right there in front of you.

Brutal but worth it.

"40 million American households with guns are generally happier
than those people in households that don't have guns."

....the vast majority of these mortgage on their books. They packaged them into mortgage backed securities and pawned them off on somebody else. It didn't matter to the banks if the borrower could reasonably be expected to repay the loans. They were not going to take the hit if the loans went into default.

.

The real problem was not predatory lending, but lending with little to no standards at all. No Doc, Low Doc, and 100% (or more) loan to value practices were just insanity in action. But these weren't predatory practices, they were just being a little to free and loose with their money and helped to inflate the bubble in the housing market. Yes the homeowners shouldn't have been borrowing more than their income could pay, but the mortgage issuers had a responsibility to do some due diligence and make sure the borrower had at least some chance of paying them back.

Now the government wants to get involved which will complicate the process, inflate home prices and cost more money for everyone.

* There ARE predatory practices out there. A VERY small percentage of loans are issued with the expectation that they will repossess the home or otherwise steal a homeowner's money. But these were not the problem and were not even close to a significant number of the loans issued.

Socialism doesn't work. It looks nice on paper, but it's been tried and it's failed miserably every time (usually accompanied by widespread death and suffering).
Proud member of the V.R.W.C.

Congress pushed for the expansion of credit to those who shouldn't have gotten it in the first place. I think the banks should have had more backbone in fighting Congress telling them to ignore centuries of sound lending practices.

that had the responsibility to make sure that the person they were giving a half million dollars to had at least a hope of paying it off. I know the thinking was that housing prices were going only in a perpetual up direction and they could get the money back by selling any properties that they might have to foreclose on, but still....

It was a supreme lack of common sense on the part of the people handing out the money that led to this crisis.

Socialism doesn't work. It looks nice on paper, but it's been tried and it's failed miserably every time (usually accompanied by widespread death and suffering).
Proud member of the V.R.W.C.