By: computer verzekering

computer verzekering — Tue, 24 Feb 2009 12:56:33 +0000

The observations and details explained in this report are ok. However I find lot of confusing statements in this report.

By: Barack H. Obama, Esq.’s Role in the Financial Crisis - Buycks-Roberson v. Citibank Federal Sav. Bank « Trust, But Verify

Fri, 10 Oct 2008 02:52:22 +0000

[...] – Buycks-Roberson v. Citibank Federal Sav. Bank October 10, 2008 Alright, to recap, the Community Reinvestment Act (CRA 1977) gave an opening for subprime lending. The CRA encouraged banks to lend money to high risk borrowers [...]

By: Diane Stearns

Diane Stearns — Tue, 07 Oct 2008 01:33:41 +0000

I worked for Bell Savings & Loan Association from 1960 to 1970. Now, I know that’s a long time ago, but red-lining at that time was not at all a secret–if anything, the loan officers boasted and laughed about it. There were certain areas of the city (non-white) where home loans would not even be considered regardless of ability to pay.
Here’s another oldie you can laugh about, but it is the absolute truth. When a husband and wife wanted a mortgage, and the woman was working, she had to sign a pledge that she would not become pregnant during the term of the loan.
Illinois at that time did not allow branch banking–so, people couldn’t easily go somewhere else to get a loan. There were only so many lenders, and if you were a person of color, regardless of your excellent credit or the amount of money you had to put down, there would not be a loan granted. Was this wrong? Of course! Was anything done about it? No! The result of red-lining then and now is that you end up with white neighborhoods and black neighborhoods–and never the twain shall meet.
The problem we have now is NOT that lenders made bad loans in black neighborhoods, it is because lenders made bad loans in white neighborhoods to people who were spending far more than they could afford. Families bought homes with ARM’s, often with balloon payments down the line, and their salaries didn’t adjust to meet the payments. The financial crisis has absolutely nothing to do with integration–it has to do with greed and thinking that the bigger, the better. Buy the largest home on the block, max out the credit cards, have three cars in the garage, etc., etc. We have become a nation of spenders who don’t seem to feel any concern about what might be down the road. Well folks, this is what is down the road! Maybe you can learn something.

Comments on: Kurtz: Community Organizing and the Financial Meltdown

By: computer verzekering

By: Barack H. Obama, Esq.’s Role in the Financial Crisis - Buycks-Roberson v. Citibank Federal Sav. Bank « Trust, But Verify

By: Diane Stearns