Bankster v. Deadbeat Debate
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Fun enough video.
But too easy on the criminal act by the homeowner and too sympathetic to the "Investors". Without the investors the market would have dried up yet they, and this has been shown in court documents, oftentimes ignored due diligence on MBS they were buying. This is why the major due diligence firm was granted immunity by NY, they showed that they disclosed the problems with the portfolios and the Investor ignored the data. Let's not forget the Investors are highly educated and in control of billions of dollars. You do not get that job without knowing what you are doing.
There is blame for everyone. I do not think the banks should bear so much of it. Had that borrower really earned $150K/yr for the last 10 years as their loan application said, they likely would have had the reserves to whether a job loss and the education to get a new job once the previous one had been lost. Those all all factors in the underwriting algorithm.
Let's not forget also - where's the money? Every cent in a transaction went somewhere.
Move-up buyer:
Realtors - 12%
Fees etc to close 2 transactions - 6%
Loan officer - 4%+
MBS sale - 5%+
That's 30% of the loan amount lost to the system. Not to mention the windfalls of tax revenue to the Feds and local Govt's.
As for taxpayer bailouts - homeowners live in homes for at least 12 months free, deficiencies are waived , taxes on deficiencies waived (even though investor writes loss off on taxes - double bailout), HARP re-fi's (another bailout), etc.
A lot of homeowners received a bailout whether they think they did or not.
This vid ignores the fact it was liberal government policy that caused the bankers to create the system described here. These banks resisted this type of lending and were forced to do it by democrats in our government that regulate the banks. They were originally forced to make these loans and forced to find a way to unload them. So they came up with the mortgage backed securities so they could exist under the governments intervention into their lending requirements. Then they saw they could profit and many did, however they never would have been in position to do that if not forced by the government. I find it disturbing how few people actually know how we got here.
Thanks for sharing! That rocks because it is filled with the truth.
This was so well done - All lot of factual informational to drive home the point. I like the last point when the banker states, "Mr. Deadbeat you don't deserve a free home, and his response was something to the effect, you are right I don't, but you do and it should be called Federal Prision" ..