RE:Banks Show Elevated Reluctance To Lend

UW of the day — Wed, 28 May 2008 11:00:00 GMT

Undeclared adjustable rates?? Have you SEEN the disclosures lately???-If anything the lenders OVERDISCLOSEthe blame should land squarely on the slick tallking originator AND MOST OF ALL the BUYERWhen you reach the legal age to sign a contract -you better make sure you know all of the risks-the low life originators are definately guilty of absolutely NO fudiciary resposibility for the welfare of their borrowersbut dont blame the lender for not disclosing-I believe its even done multiple languages nowadaysundeclared adjustable rates?? WHAT??

RE:Banks Show Elevated Reluctance To Lend

Michelle Jackson — Wed, 14 May 2008 11:00:00 GMT

I think that the major problem that started the mortgage crisis was undeclared adjustable rates. Combined witht the fact that people with inferior credit get such high interest rates, it is not surprising that they often default on their loans. We need to have a new standard in the mortgage industry. We need to have contracts that are clear and in my opinion adjustable rates should be done away with, for the sake of the country and economy. Also while tighter loan standards SHOULD be in place, owning a home should be something the average american can accomplish (it is part of the "American Dream") and the people who have inferior credit, should have the chance too- but a real chance. Charging double digits in interest only adds to the potential default rate. I live in an area where the median home price was 800K to 1 M now its closer to 400K and due to the excessive amount of FORECLOSURES in nearby neighborhoods, where predatory loans were predominant the house prices have fallen from 6-8K all the way down to 200K and will continue to plummit, as the market continues to fill with more and more foreclosures, the prices will drop and drop. Also with creditors tightening up the standards less people will be buying, banks will either need to change their practices or face a market where there is no buyers and little to no profit. If the banks keep the interest rates low for everyone, I believe we would see a dramatic change in the economy and in the housing market.