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What ever happened to personal responsibility?

By TechGromit   2013 Jan 10, 12:15pm   ↑ like (2)   ↓ dislike   1,347 views   8 comments   watch (2)   share   quote  

http://money.cnn.com/2013/01/10/real_estate/mortgage-rules/index.html?iid=HP_LN

Consumer protection groups are complaining that banks can loan more money then people can reasonably be expected to pay back, and the bank are protected by lawsuits for loaning too much. What ever happened to personal responsibility? Sure the bank would be stupid to loan you more money than you can afford to pay back, but shouldn't you as the consumer be responsible enough to determine if you can afford the mortgage? Hasn't the housing bubble taught us anything? Just because the bank loans you the money doesn't mean they have determined you can afford to pay it back. Hell they might assume your going to give up your entertainment and eating out budget for the next 30 years, living off noodles and canned kidney beans. You on the other hand might have other ideas.

Just makes me sick that even consumer groups are crying foul. If you can't do the math, you shouldn't be applying for a mortgage in the first place.

#housing

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1   Entitlemented (10/10 = 100% civil)   2013 Jan 10, 12:18pm  ↑ like (1)   ↓ dislike   quote   top   bottom   home   share  

Right now on C-Span theres a Community Finance meeting shown from Baltimore. The Mayor got on and said "we need more cheap mortgages for our city residents" (abid). People are getting up and talking about their subprime loans, and actually giving their case # for loan modifications to get more free funds.

Seems like the CRA and its next phase are the only issue now, and all the trouble of shady finance that did this whole mess is ignored.

This is very concerning. Would these people finances not be in much better shape if they would have rented home for $1500 / month rather than get this subprime loans and HELOCs in the first place?

2   Kevin   2013 Jan 10, 12:23pm  ↑ like (1)   ↓ dislike (1)   quote   top   bottom   home   share  

There has never been personal responsibility. That's just something that people claim uses to exist.

3   thomaswong.1986   2013 Jan 10, 12:25pm  ↑ like (3)   ↓ dislike   quote   top   bottom   home   share  

Entitlemented says

Right now on C-Span theres a Community Finance meeting shown from Baltimore. The Mayor got on and said "we need more cheap mortgages for our city residents" (abid). People are getting up and talking about their subprime loans, and actually giving their case # for loan modifications to get more free funds.

and you will find similar talk especially in California.

4   Entitlemented (10/10 = 100% civil)   2013 Jan 10, 12:37pm  ↑ like (2)   ↓ dislike   quote   top   bottom   home   share  

Found a letter to Obama from the head of this Consumer Finance group. Its all about loan modification and has the usual cast of characters supporting low cost loans:

http://www.nclc.org/images/pdf/pr-reports/letter-obama-consumer-to-transition.pdf

5   Entitlemented (10/10 = 100% civil)   2013 Jan 10, 12:43pm  ↑ like (3)   ↓ dislike   quote   top   bottom   home   share  

It turns out that these legal advocacy group are just 2 hairs away from government. These attornees are using public funds to become rich, under the guise of helping the consumer. So this is like Lawyers again becoming rich off the demise of others, One group of Lawyers advocating for subprime and easy money, the other side singing about how consumers were fleeced all the which using US tax dollars to pay both sides.

http://www.nclc.org/images/outlook/spring10_outlook.pdf

Is my observation wrong?

6   epitaph   2013 Jan 11, 4:45am  ↑ like (2)   ↓ dislike (1)   quote   top   bottom   home   share  

The banksters and Wall St. cry foul too, so it's not just consumers. I'm not sure when, or even how, but the precedent has been set. Irresponsibility, finger pointing and greed are now the virtues of our new American society.

7   Tenpoundbass (76/76 = 100% civil)   2013 Jan 11, 4:50am  ↑ like (5)   ↓ dislike (3)   quote   top   bottom   home   share  

TechGromit says

Consumer protection groups are complaining that banks can loan more money then people can reasonably be expected to pay back, and the bank are protected by lawsuits for loaning too much. What ever happened to personal responsibility? Sure the bank would be stupid to loan you more money than you can afford to pay back, but shouldn't you as the consumer be responsible enough to determine if you can afford the mortgage?

The consumer is already protected all they have to do is just get foreclosed on. They can bounce back and buy another house with in 3 years. That's 4 years quicker than someone who defaulted on a gym membership.

8   C Boy   2013 Jan 13, 10:25pm  ↑ like   ↓ dislike   quote   top   bottom   home   share  

As I long as the banks can continue to forge documents and signatures with no threat of jaill. housing loans will eventually force another bailout.

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