Originally Posted by wag123
Originally Posted by billt460
What's even scarier is the real estate market. People and lenders are going right back to doing what collapsed the real estate market the first time around back in 2008-2009. They didn't learn a thing.
The mortgage lenders learned PLENTY last time, they learned that they can get away with doing this with NO negative ramifications. The last time this happened... nobody was charged, nobody went to jail, nobody was fined, the Federal Government bailed them out, the bankers involved gave themselves big bonuses for the "trouble" (even though their activities crashed the economy), and no new laws were passed or rules made to prevent them from doing it again, and they are doing it again!
I was around the last time it happened. They were much more lax back then with option ARMS and no money down, no verification loans. At least they run your credit score these days and you still need to qualify. There's still a lot of people out there that have 20 to 50 percent or more for a down payment and you still run into buyers that have cash for a purchase. Inventory is also lower than it was in the past.
Originally Posted by billt460
What's even scarier is the real estate market. People and lenders are going right back to doing what collapsed the real estate market the first time around back in 2008-2009. They didn't learn a thing.
The mortgage lenders learned PLENTY last time, they learned that they can get away with doing this with NO negative ramifications. The last time this happened... nobody was charged, nobody went to jail, nobody was fined, the Federal Government bailed them out, the bankers involved gave themselves big bonuses for the "trouble" (even though their activities crashed the economy), and no new laws were passed or rules made to prevent them from doing it again, and they are doing it again!
I was around the last time it happened. They were much more lax back then with option ARMS and no money down, no verification loans. At least they run your credit score these days and you still need to qualify. There's still a lot of people out there that have 20 to 50 percent or more for a down payment and you still run into buyers that have cash for a purchase. Inventory is also lower than it was in the past.