U.S. Is Set to Sue a Dozen Big Banks Over Mortgages

[LegendKiller]

What will happen is the banks will be eligible for another federal bailout after they reset government backed mortgages at a lower interest rate as a condition of the suit.

Of course this was all caused by the government in the first place who encouraged lenfers to make these loans to get people into homes.

Which loans were encouraged by the government?

 

[spacejamz]

Which loans were encouraged by the government?

http://www.huduser.org/publications/txt/hdbrf2.txt

At the request of President Clinton, the U.S. Department of Housing
and Urban Development (HUD) is working with dozens of national
leaders in government and the housing industry to implement the
National Homeownership Strategy, an unprecedented public-private
partnership to increase homeownership to a record-high level over the
next 6 years.

 

[LegendKiller]

http://www.huduser.org/publications/txt/hdbrf2.txt

At the request of President Clinton, the U.S. Department of Housing
and Urban Development (HUD) is working with dozens of national
leaders in government and the housing industry to implement the
National Homeownership Strategy, an unprecedented public-private
partnership to increase homeownership to a record-high level over the
next 6 years.

Again, which loans, which were responsible for this issue, was encouraged by the government?

CRA = false.

So what else do you have?

 

[Fern]

We gave them trillions so we could... take them down later? 😕

Yeah, that was I was thinking when I saw the article.

Nothing will come of this, except maybe another bank bailout.

My next thought was after we sue them, we'll have to bail them out again.

Fern

 

[Fern]

The circle is now complete.

The government opened up the purse strings to allow those who wouldn't have ordinarily qualified to buy a home to now live the the American dream of home ownership.

There was a reason that these folks were not homeowners back then, primarily for financial reasons (not enough down payment, bad/no credit history, etc).

It hilarious that the government is going to sue for these bad loans when they were the ones who encouraged it in the first place.

Yep.

And let us not forget that the govt imposed mark-to-market rules in the wake of Enron knocked the crap out of these securities.

Fern

 

[LegendKiller]

Yep.

And let us not forget that the govt imposed mark-to-market rules in the wake of Enron knocked the crap out of these securities.

Fern

Yep what?

The guy is completely off base. There isn't one fucking thing the government did to encourage Countrywide and Mozillo to issue billions of shit loans. Not one thing.

No-down, option-arm, liar loans weren't sanctioned by the government and that's not what was issued for CRA.

I guess the assclown who bought 5 houses to flip them is who you are bitching about, right?

 

[BoberFett]

Again, which loans, which were responsible for this issue, was encouraged by the government?

CRA = false.

So what else do you have?

While it may not have been directly encouraging specific loans, you don't suppose this could have had anything to do with it...

 

[LegendKiller]

While it may not have been directly encouraging specific loans, you don't suppose this could have had anything to do with it...

Pray tell, what does interest rate matter with an I/O 2 year option arm with an up-front teaser rate?

Or how about you graph the 10yr bond to the 30-year mortgage rate, you might find that spread compression was huge.

Or, pray tell, did rate even matter if it wasn't tied to income?

It's amazing what people will do to chuck blame on the government when, in reality, the market was doing a damn peachy job of doing the wrong things.

 

[BoberFett]

So cheap money and Fannie buying up everything in site with no end to it's appetite for new mortgages had absolutely nothing to do with it.

You're willfully in denial.

http://www.lewrockwell.com/paul/paul128.html

Commence with your typical libertopian Ron Paul, LOL, mockery, monkey boy. Denial is the only thing you have going for you.

 

[LegendKiller]

So cheap money and Fannie buying up everything in site with no end to it's appetite for new mortgages had absolutely nothing to do with it.

You're willfully in denial.

http://www.lewrockwell.com/paul/paul128.html

Commence with your typical libertopian Ron Paul, LOL, mockery, monkey boy. Denial is the only thing you have going for you.

The GSEs have 14trillion in mortgages?

Really?

They bought more than 3tr issued every year?

You don't even realize how stupid of a statement that is.

 

[Schadenfroh]

Good, fuck the corrupt / incompetent financial institutions. If they are guilty, I hope those responsible rot in jail.

 

[WaTaGuMp]

I'm sure the banks will settle out of court with a slap on the wrist and a stern letter from Congress.

Then come up with new fees to pay for the lawyers.

 

[punjabiplaya]

This will not make a difference. The CEOs will still go home with millions. Only difference is some lawyers will make even more money.

 

[BoberFett]

The GSEs have 14trillion in mortgages?

Really?

They bought more than 3tr issued every year?

You don't even realize how stupid of a statement that is.

No, simpleton. Do you really think that the housing bubble didn't affect other areas of the economy? Ever stop to think how the skyrocketing home prices blew consumer spending out of proportion? Buy a house today! Next year it will be worth twice and much and you can take out a HELOC and spend, spend, spend!

Now we're stuck trying to plug the holes in the dike that the shrinking home market can no longer fill. We didn't let the recession happen in 2001 and we made the problem worse. The government is partly to blame, along with banks and consumers.

 

[HendrixFan]

Now we're stuck trying to plug the holes in the dike that the shrinking home market can no longer fill. We didn't let the recession happen in 2001 and we made the problem worse. The government is partly to blame, along with banks and consumers.

The government is to blame if you mean they shouldn't have let the free market have a run at it. The statements above were that the government was to blame because it encouraged irresponsible/illegal lending.

 

[LegendKiller]

No, simpleton. Do you really think that the housing bubble didn't affect other areas of the economy? Ever stop to think how the skyrocketing home prices blew consumer spending out of proportion? Buy a house today! Next year it will be worth twice and much and you can take out a HELOC and spend, spend, spend!

Now we're stuck trying to plug the holes in the dike that the shrinking home market can no longer fill. We didn't let the recession happen in 2001 and we made the problem worse. The government is partly to blame, along with banks and consumers.

You have yet to prove your causality to the government being "partially" in the correct function. I KNOW the government is partially responsible, but it isn't in the way (or isn't as major as you think) you jackholes keep fucking around with (CRA, GSEs, rates...etc).

As stated above, my original post is from the government encouraging risky lending. Not a single person has been able to back up that with facts. Then you come in with rates (which I refuted with simple logic).

 

[Budmantom]

So how much do these banks have to contribute to Obama's re-election campaign before this whole thing goes away?

 

[Zebo]

Suing the insolvent is not a good idea. Is the government going to pay the judgement to themselves or what?

 

[Ausm]

Suing the insolvent is not a good idea. Is the government going to pay the judgement to themselves or what?

Since we already bankrolled them in essence we already are 😉

 

[Greenman]

I think the government should keep its nose out of the free market.

I'd agree with you, but since the Feds now guaranty profits, we have the right to absolute control.

 

[Icepick]

It is about time for the criminals to go to jail. How about a $10k fine for every bad loan. Plus make them pay back the closing costs.

QFT

 

[BoberFett]

The government is to blame if you mean they shouldn't have let the free market have a run at it. The statements above were that the government was to blame because it encouraged irresponsible/illegal lending.

Right, because government mortgage guarantees through the GSEs is a function of the free market. 🙄

 

[Nemesis 1]

After giving the banks billions now were going to sue.

OP should have said . Obama starts legal proceeding against banks to get votes in 2012. Clearly its a political fruit tree that will bare NO fruit.

 

[Icepick]

I think the government should keep its nose out of the free market.

Huh? After all that's transpired due to lack of proper government regulations? Not sure if serious?

 

[Icepick]

the government is to blame if you mean they shouldn't have let the free market have a run at it. The statements above were that the government was to blame because it encouraged irresponsible/illegal lending.

qfmft