US subprime lenders targeted blacks, poor:

[water]

What bogus loans ? They are what they said they are. I got shit in the mail EVERY DAY about re-fi's and equity lines, but I knew that no matter how they put it, they are going to want thier money back. And common sense dictates that if something takes a lot to sell, they it may not be worth buying.

And that "blacks people refuse to stand up for thier own" bullshit does not wash. Many, many people warned about ARM's and many didn't listen, and are now bearing the consequences. Warning folks and preaching caution are acts of love, not hate.

Also, educate yourself on what whites do to each other. There have been schemes on them too, like blockbusting, selling homes in flood plains, not to mention that most ARM's are held by white people, often middle class. That is why two of the worst hit areas in the country are SoCal and Nevada.[/quote]


And this further backs up my point:

There are white folks that are just as financially irresponsible as black folks.


The problem is not one of color but of CULTURE.

It is the American Culture to over-consume.


There are also very unscrupulous lenders.

To generalize black folks as DaimondDuece did is very unfair.

the ways he says " "most" white folks don't seem to get caught up like that. At my job I see the MODEL THAT THE WHITE FOLKS USE."............

.................is to ignore the fact that he may be seeing decision making at a different socio-economic level than is the norm.




Coupled with the fact that he uses a "Laquesha" as an example shows his obvious bias.................

 

[PEACE1]

What bogus loans ?[EDIT - To clarify, there is always some fraud, but I don't see it as the main driver here] They are what they said they are. I got shit in the mail EVERY DAY about re-fi's and equity lines, but I knew that no matter how they put it, they are going to want thier money back. And common sense dictates that if something takes a lot to sell, they it may not be worth buying.

And that "blacks people refuse to stand up for thier own" bullshit does not wash. Many, many people warned about ARM's and many didn't listen, and are now bearing the consequences. Warning folks and preaching caution are acts of love, not hate.

Also, educate yourself on what whites do to each other. There have been schemes on them too, like blockbusting, selling homes in flood plains, not to mention that most ARM's are held by white people, often middle class. That is why two of the worst hit areas in the country are SoCal and Nevada.

That's very nice however those companies that preyed upon those folks were dealt with appropriately.

 

[xeon]

What does self hate have to do with me being able to use critical thinking skills?

PRICELESS

I don't get what so funny

This story is about fraud and a real conspiracy to commit fraud.

 

[BDR]

You see this is how completely fucked up this country is, where I am from being that it has a gross GDP of 6 billion+ this financial institutions dont even do fuckery on the level they do it here.

Yo when you get appoved for a home loan back their the bank ask you is there more things you need, yo u can fully funish your house and get a vehicle. All the bank does is all that cost on top of your principle loan. So all you are doing consolidating everything into 1. Makes perfect sense

I see 2 ways out of this shit here, 1. either burn the house down and make it look like faulty wiring caused it so u can collect from insurance or the government needs to step in and force the financial institutions to readjust their customers rates to fixed rate 25 yr loans and retroactive their customers rates to when they first recieved their homes, that way nobody forecloses, the banks dont have a tonof vacant properties sitting. The economy rebounds and everybody is happy and lessons will be learned.

 

[Drayonis]

Yup... Colin Powell might show up but fuck it.

This mortgage company crisis has exposed black folks...think deeper.
We all now that black folks like to live beyond their means. As a businessman other industries capitalize off of this fact too. Rim companies, urban-wear, and alchol companies to name a few.

Having an MBA.. I know that Consumers Drive demand for a product. A business in a capitalist society creates a innovative product/service by meeting creatively meeting CONSUMER DEMAND.

I moved to ATL in 2003 and saw this shit unfold first hand. Here is essentially what happened. You had a business that may have say 1,000 employees.
Laquesha who has a 570 fico score and makes $38K/year after tax take home of $2200/month. Laquesha finds a mortgage guy that gets here into an ARM on a $150K property in a new construction subdivision down in College Park. Her mortgage starts at $1,100/month. Laquesha invites her coworkers that have the SAME salary as her to the housewarming. The see Laquesha in the house get excited thinking that they SHOULD be able to afford the same. So they all go see Laqueshas mortgage broker. THE PROCESS repeats itself like a virus.


Fast forward 5 years later.
Laquesha is now making $42K/ Year and taking home $2400/month. Her Arm has reset and her mortgage is now $1600/month. But last year before the ARM reset Laquesha went out and bought a HONDA ACCORD with $400/month car payments. SEE THE PROBLEM?

A year later Laquesha loses her house in foreclosure. Who is she going to blame for this? It can't be her fault? So of course it is going to be the "Crooked Mortgage Guy" who she says "put her in a house she couldn't afford". So Laquesha is now a victim........along with all her other friends in the same situation that do not want to take responsibility for making bad financial decisions.

Enter Jesse Jackson and Al Sharpton to the RESCUE!!! These guys make a living off of BLACK VICTIMHOOD. Jesse & AL see that a lot of fame/press/money can be made on BLAMING THE INDUSTRY for Black folks plight. ALL THE BLACK PEOPLE THAT GOT "CAUGHT UP" ARE MORE THAN HAPPY TO BE ABLE TO PLACE THE BLAME ON SOMEBODY OTHER THAN THEMSELVES.

"most" white folks don't seem to get caught up like that. At my job I see the MODEL THAT THE WHITE FOLKS USE.
If they married and have a combined household income of $80K and take home $4500 a month after taxes. Here is how THEY spend their money.

• 
  [*]The wife may drive a new Accord $400/ month
  [*]The Husband dives a 5-10 year old pickup truck that is paid off.
  [*]They qualified for a $300K house but decided to live within their means and buy a $200k house with a mortgage of $1600/month

Now a black couple that makes $80K is going to spend their money like this:

• 
  [*]The wife is going to drive a BRAND NEW BMW 5 series LEASED $600/month
  [*]The Husband Drives a BRAND NEW Yukon payments $500/month
  [*]They got approved for a $300K house and PURCHASED A house at $300K with a mortgage of close to $2500/month.
  [*]Plus the wife shops and has all the latest coach/prada bags
  [*]The husband keeps a clean set of 22" wheels on the Yukon

And we wonder why we stay in Economic Trouble as a people?

Very good analysis. As a business man myself I try to tell my employees the value of being out of debt. Both me an my wives cars are paid for we carry no credit debt (own cards use them for emergencies only). We have a combined income of over 200k a year and live in an affordable home. We save as much as we can and remind each other "debt" is the enemy.

Too many times black people as a whole a quick to blame the corporations and business that "THEY CHOOSE" to do business with. Sometimes you have to step back and look at your life decisions.

Also might I add that "Laquesha" most likely has 1-2 kids and no husband to help her shore up her income or take the weight. It all starts with the way you were raised.

 

[Cruise]

If it's subprime, many times the borrower gets a fraction of the loan amount.

For a mortgage of $30,000, the homeowner might see $18,000. Where did the rest of the money go?

This happened all over Detroit.

The mortgage companies just abused the hell out of the residents.

But, with the banks basically boycotting the city, what can you do?

 

[BlkStrength]

I kind of get both sides. But I moreso believe it's the consumer's responsibility to know what they are signing their name to. I've worked in Servicing the last few months, some people have absolutely no idea what kind of mortgage they have or even that escrow is added to their monthly payment...Black, White, Hispanic and Other.

Agents are looking out for themselves first then the companies they represent and you last...such is Business...you will get hustled in pretty much any transaction if you are not careful. If you don't know what something means...get a lawyer, another realestate agent...other to explain it to you beforehand. If you don't have anyone to explain it to ya, don't sign it.

I can't fathom having an ARM loan and not knowing so...or knowing when it's schedule to update. And alot of times, it's just financial irresponsibility on the part of the homeowner during the time they have their intro rate on the Arm. I tell people all the time, you should have refi'ed this loan long time ago to a fixed rate if you knew you were keeping the property.

 

[RoadRage]

An example:

Ivan Burwell,
Diversity Strategist

Ivan is an advertising, marketing and communications specialist with over 20 years' of experience in the strategic development, design, and execution of targeted merchandising and promotional programs.



Ivan has a successful track record of building brand equity and generating product trial, resulting in incremental sales that have continuously exceeded the plan. He has also served on corporate innovation teams to identify, evaluate, and recommend new business development strategies and best practices.
As the first Director of Ethnic Marketing at the Coors Brewing Company, Ivan established the template and methodology for advertising and retail marketing development based upon a strategic platform and keen consumer insights.

And I bet that mother fucker goes to church every Sunday testifying how the lord has bless him and his family, knowing damm well that he just fucked up the lives of a half dozen Blacks that same week!
I have more respect for the stick up kids on the street, at least they give you a fighting chance!

 

[BlkStrength]

If it's subprime, many times the borrower gets a fraction of the loan amount.

For a mortgage of $30,000, the homeowner might see $18,000. Where did the rest of the money go?

This happened all over Detroit.

The mortgage companies just abused the hell out of the residents.

But, with the banks basically boycotting the city, what can you do?

Now in this case...this is a legitmate gripe...thats way to much to be paying in fees.

 

[Adam Knows]

Now in this case...this is a legitmate gripe...thats way to much to be paying in fees.

but that's what it was all about....

lenders were throwing on enormous fees...

i had one kat give me 2500 for every referral i sent to him in 2005-2006 and was trying to get me in the business cause they were making 6-8k upfront not worrying about the back end.

 

[Obadiah Plainman]

We gotta be more careful.....whats fucced up too is a lotta mortgage companies are hiring Blacc folks to lure other Blacc folks into subprime loans n shyt!!!

True, but whats even worse is that some of the real estate companies ARE black owned.

 

[Obadiah Plainman]

Remember the words "Buyer Beware".

Nobody put a gun to somebody's head and said "Here sign now for this adjustable rate mortgage"

I agree the industry does need some changes..........but the consumer is THE ONE WITH CHOICE...and must take responsibility.

Sometimes a scam is just a scam, even if its government approved. People have worked their entire lives to achieve a goal and once that goal seems to be attainable they reach. Problem is that the glitter shines so tough, that they fail to notice the many tangled strings attached. Its a con job plain and simple, perpatrated on the most desparate.

 

[Fuckallyall]

That's very nice however those companies that preyed upon those folks were dealt with appropriately.

No, they weren't. Those that bought homes like that were SOL. If we keep falling for "thier" shit, why should we bitch that "they" keep trying shit ?

To quote Brother Malcolm - "Blacks going to whites looking for apologies is like the mouse going to the cat for affection".

 

[Adam Knows]

True, but whats even worse is that some of the real estate companies ARE black owned.

not the real estate companies, the lenders....

 

[water]

To quote Brother Malcolm - "Blacks going to whites looking for apologies is like the mouse going to the cat for affection".

damn.................

 

[Daddy Warbuck$]

YADA YADA YADA YALL NIGGAZ KILL ME WITH THIS SHIT. THE SUBPRIME LENDERS DID NOT TARGET NIGGAZ...NIGGAZ TARGETED THEM. THIS IS MY BUSINESS SO I KNOW. SHIT WOULD HAVE BEEN COOL IF NIGGAZ WERE NOT CASHING OUT ON THESE PROPERTIES. INFLATED APPRAISALS KILLED THE ENTIRE INDUSTRY.

MORTGAGE FRAUD IS THE NIGGA NEW HUSTLE, AND DEFRAUDING THE BANKS WITH FAKE DOCUMENTATION IS WHAT CREATED THIS MESS. MAJORITY OF ALL FORCLOSURES WILL BE PEOPLE OF COLOR BECAUSE NIGGAZ ARE STUPID AND LACK KNOWLEDGE. NIGGAZ WILL CASHOUT 80-100K AND GO BUY A BENZ WITH THAT SHIT AND THEN SPEND 10K ON THE RIMS. THE PAYMENT ON THE MORTGAGE IS SKY HIGH AND THERE IS NO WAY A RENTER CAN COVER THAT SHIT.

AND DON'T GET ME STARTED ON THE NIGGAZ WHO PUT 8 PROPERTIES IN THEIR NAME AND ALL WERE FINANCED "OWNER OCCUPIED" ... NIGGAZ DESTROYED THE MARKET PLAIN AND SIMPLE.

 

[water]

Ignore List

http://www.bgol.us/board/profile.php?do=addlist&userlist=ignore&u=38418

 

[rundatrack]

If it's subprime, many times the borrower gets a fraction of the loan amount.

For a mortgage of $30,000, the homeowner might see $18,000. Where did the rest of the money go?

This happened all over Detroit.

The mortgage companies just abused the hell out of the residents.

But, with the banks basically boycotting the city, what can you do?

I am trying to understand....

How do they close if they come up short?

Makes no sense.....cuz they wouldnt be able to buy the house

 

[DaleMabry]

That is still a generalization.


There are white folks that are just as financially irresponsible as black folks.


The problem is not one of color but of CULTURE.

It is the American Culture to over-consume.

To categorize or generalize that scenario, even if it exist to an extent, is not altogether fair...................

Great post Kaya

 

[slowrush]

Lurkers,
I think that both side (banks&lenders/consumers) are to blame in the problem.

Banks & Lenders making bad loans should incurr the risk. How many times do you hear "Big Business" tell us that if a small business can't stay competitive, then they need to adapt or close. It is how the free market works. I agree with that, but now that the shoe is on the other foot, and they have made bad decisions, they now say they need help. The same companies that complain against the government when it gives helps to the poor and needy, that it is our fault for or own condition, now they are asking for help. Just look at the airline industry. They had a monopoly on travel, but bad business decisions forced them to go into bankruptcy, take away employee penisons but still give their top bosses big pay raises. If you look at Countrywide and others that say they are in finacal trouble, take a look to see how much the people at the top make. I bet the CEO's pay could probably be more than a lot of the "middle managers'" salaries for 5 or 6 years. They sold a shitty product, and then began to squeeze the people that they sold them to for more, when they had nothing more to give. Now they blame it on those who took out the loans as if it was their fault.

For the borrowers, hell many have made some bad mistakes with finances and credit, and some thought that if they are giving it, then I'll take it. But nothing is for free. They should have realized just like the crack dealer who gives away free product, one day that was going to end and it would be up to you to pay for the rest.

I think that sub-prime loans are good if used properly. If the gov't can give billions to the airlines to bail them out (that to me is the same thing as asub prime loan) of the gas industry in the 80's, to get them on their feet, why can't people who may not have perfect credit, but are trying to achieve the American dream and own a home that is within reason be able to get a loan. Then, once they have shown that they are financially responsible, then get the bigger and better loans.

So now we have this situation. The way out of it. People who had lived beyond their means and have had to foreclose and move back to a lower standard, now is the time to take back what ever place you live, put an end to the "kncukle heads" who commit the crimes and make something of their places. Why do this, because, now that they are not building and making new suburbs as fast as they used to, and gas is as expensive as it is, people are moving back "down town." Now instead of them trying to come in and buy for dirt cheap in places, if we took care of the crime and issues in the "hood" they would be forced to pay a higher price for nicer areas.

These are just my thoughts.

 

[Adam Knows]

MORTGAGE FRAUD IS THE NIGGA NEW HUSTLE, AND DEFRAUDING THE BANKS WITH FAKE DOCUMENTATION IS WHAT CREATED THIS MESS. MAJORITY OF ALL FORCLOSURES WILL BE PEOPLE OF COLOR BECAUSE NIGGAZ ARE STUPID AND LACK KNOWLEDGE. NIGGAZ WILL CASHOUT 80-100K AND GO BUY A BENZ WITH THAT SHIT AND THEN SPEND 10K ON THE RIMS. THE PAYMENT ON THE MORTGAGE IS SKY HIGH AND THERE IS NO WAY A RENTER CAN COVER THAT SHIT.

i have to agree with some of that...i know kats who were making thousands a week supplying fake documents...

trust me on that is all i'm gonna say.....

 

[rundatrack]

Well as a real estate agent I can tell you that. If they qualified for a number..they were extremely animatedly that they didn't want to see anything lower than that number.


People all of a sudden became real estate gurus. Tell me the comps..that they thought stuff was and that they didnt wanna pay SHIT down...wanted to put down 5k and get it back at the closing table.

WTF


I would try to explain but people were never trying to listen. What should I have done...gave up the client...

As my father famous Jamaican saying " If you don't hear you must feel"


People think that HGTV made them a guru. 99 percent of my clients were black. The one white couple was qualified for 405 and looked for 350k homes...

This is just my experience but people became utter assholes and wanted to tell the mortgage people as well

The guy I spoke to yesterday said I was qualified for 500k..you only said 375k

What should he have done...told them no....

Even with explaining the terms of adjustable and having to refi quickly...they were like fakk that...

combined incomes of 110k

People arent telling the truth...there are 2 sides to this coin..

 

[Blu Diablo]

The loans are a scam but folks need to read ALL the fine print before getting in bed with a situation like this. I don't necessarily see it as completely racial because white folks lack basic knowledge about money too contrary to the belief of some, but because they have the wealth skewed in their favor they don't come off looking quite as clueless.

I understand the dream of home ownership but anybody willing to give me something for nothing or next to nothing generally has a plan to make their bread back...in stacks.

Educate yourself, that is the best way to avoid the pitfalls.

 

[Daddy Warbuck$]

i have to agree with some of that...i know kats who were making thousands a week supplying fake documents...

trust me on that is all i'm gonna say.....

OH I know shit was real. I know a cat here in Atlanta that had to be clearing 15k a week off that shit. Niggaz writing up fake VOD's Fake Tax Documents... hell even FAKE Check Stubs. And Don't forget the Fake VOE's.. "Clay Davis" SHEEEEEEEIIIIIIIIIIT

But everyone wants to point to the Banks as the Culprit...now don't get me wrong they were some dumb muthafuccas to come up with this shit and now the chickens have come to roost...But at the same time you can not discount the "Nigga" factor for throwing GASOLINE on a Wildfire.

DISCLAIMER: I DO NOT DO NON OF THIS SHIT SO LEAVE ME THE FUCK ALONE

 

[Cruise]

I am trying to understand....

How do they close if they come up short?

Makes no sense.....cuz they wouldnt be able to buy the house

This is how it works for a home buyer but the principle is similar for a refi.
...
Let's say Lula Mae in Detroit wants to buy a house, but none of the banks will lend her the money.

Enter the mortgage company (mortgage broker).

The mortgage company talks to Lula Mae and says they can get her a mortgage to buy the home she wants.

Lula Mae says ok and signs the paperwork with the mortgage company.

Without telling Lula Mae, the mortgage company takes the purchase price of the home and tacks on a bunch of fees on top. If the price of the home is $85,000, it will be $110,000 once the loan is made.

Now, who buys this loan?

There are financial institutions which buy subprime mortgages in bulk. They do not buy 1, they buy 1000s at once. The mortgage company originates 1000s of these contracts throughout Detroit and sells them to these subprime buyers (like Countrywide).

So, basically, once the mortgage starts, the mortgage agent has made their money and they are gone.

This leaves Lula Mae (the borrower) and Countrywide (the subprime buyer).

Essentially, the mortgage broker has grossly overvalued the mortgage to profit from Lula Mae and dump on Countrywide.

Everybody loses except for the mortgage broker.

In the case of Detroit, the most egregious example was WorldWideFinancial->Loan Giant (the mortgage broker) and GMAC (the subprime buyer).

 

[Daddy Warbuck$]

Well as a real estate agent I can tell you that. If they qualified for a number..they were extremely animatedly that they didn't want to see anything lower than that number.


People all of a sudden became real estate gurus. Tell me the comps..that they thought stuff was and that they didnt wanna pay SHIT down...wanted to put down 5k and get it back at the closing table.

WTF


I would try to explain but people were never trying to listen. What should I have done...gave up the client...

As my father famous Jamaican saying " If you don't hear you must feel"


People think that HGTV made them a guru. 99 percent of my clients were black. The one white couple was qualified for 405 and looked for 350k homes...

This is just my experience but people became utter assholes and wanted to tell the mortgage people as well

The guy I spoke to yesterday said I was qualified for 500k..you only said 375k

What should he have done...told them no....

Even with explaining the terms of adjustable and having to refi quickly...they were like fakk that...

combined incomes of 110k

People arent telling the truth...there are 2 sides to this coin..

EXACTLY!! AND THAT 100% "STATED" BULLSHIT WAS THE CULPRIT!! A LOAN OFFICER ONCE TOLD ME THAT SHE HAD ME APPROVE FOR A 850K HOUSE. I LOOKED AT HER AND SAID THANKYOU BUT I KINDA LIKE THIS 250K HOUSE THAT I'M PICKING UP WHOLESALE @ 185K

 

[Daddy Warbuck$]

This is how it works.

Let's say Lula Mae in Detroit wants to buy a house, but none of the banks will lend her the money.

Enter the mortgage company (mortgage broker).

The mortgage company talks to Lula Mae and says they can get her a mortgage to buy the home she wants.

Lula Mae says ok and signs the paperwork with the mortgage company.

Without telling Lula Mae, the mortgage company takes the purchase price of the home and tacks on a bunch of fees on top. If the price of the home is $85,000, it will be $110,000 once the loan is made.

Now, who buys this loan?

There are financial institutions which buy subprime mortgages in bulk. They do not buy 1, they buy 1000s at once. The mortgage company originates 1000s of these contracts throughout Detroit and sells them to these subprime buyers (like Countrywide).

So, basically, once the mortgage starts, the mortgage agent has made their money and they are gone.

This leaves Lula Mae (the borrower) and Countrywide (the subprime buyer).

Essentially, the mortgage broker has grossly overvalued the mortgage to profit from Lula Mae and dump on Countrywide.

Everybody loses except for the mortgage broker.

In the case of Detroit, the most egregious example was WorldWideFinancial->Loan Giant (the mortgage broker) and GMAC (the subprime buyer).

AND THEN COUNTRYWIDE REALIZES THAT X AMOUNT OF LOANS FROM "THIS GUY" ARE DEFAULTING SO THEY GO TO HIM AND SAY "YO MUHFUCCA THIS IS SOME FUCKED UP PRODUCT YOU GAVE ME, YOU NEED TO TAKE THESE SHITS BACK OR I AIN'T FUCKIN WITH YOU NO MORE" AT THAT TIME THE SUBPRIME LENDER SAYS "PRODUCT UP MY ASS GUMP" AND TELL COUNTRY WIDE TO GO FUCK HIMSELF!


THATS THE WIRE VERSION

 

[DaleMabry]

@ Wire version. "Product up MY ASS, GUMP!"

 

[rundatrack]

First of all LO's need some certification requirements. You handle 99% of the country's largest investment and ya dont need shit..

This made it that brokers were just wild westing loans...but I again say that 75% percent of buyers were just looking for more more more...by any means necessary

 

[BlkStrength]

This is how it works for a home buyer but the principle is similar for a refi.
...

Without telling Lula Mae, the mortgage company takes the purchase price of the home and tacks on a bunch of fees on top. If the price of the home is $85,000, it will be $110,000 once the loan is made.

This is where I get lost...seems like red flags ought to go up when looking at the required Truth in Lending and HUD1 documents. $25,000 in fees should raise red flags everywhere. Most of it going toward Brokerage fee sounds like where the addition was made. Investors, sellers, attorneys as well as title companies should have been crying foul.

That really should be illegal...I admit, not wise to the game on that end (I worked in servicing after the damage had already been done)...won't doubt that it happens though. Large corps like Countrywide, BofA, Wells Fargo..etc. Notorious for not making sure everything is legit numbers wise. Didn't have the staff because loans were coming in so fast.

 

[Adam Knows]

This is where I get lost...seems like red flags ought to go up when looking at the required Truth in Lending and HUD1 documents. $25,000 in fees should raise red flags everywhere. Most of it going toward Brokerage fee sounds like where the addition was made. Investors, sellers, attorneys as well as title companies should have been crying foul.

That really should be illegal...I admit, not wise to the game on that end (I worked in servicing after the damage had already been done)...won't doubt that it happens though. Large corps like Countrywide, BofA, Wells Fargo..etc. Notorious for not making sure everything is legit numbers wise. Didn't have the staff because loans were coming in so fast.

it should be, but it's not. to an extent.

 

[xeon]

This is where I get lost...seems like red flags ought to go up when looking at the required Truth in Lending and HUD1 documents. $25,000 in fees should raise red flags everywhere. Most of it going toward Brokerage fee sounds like where the addition was made. Investors, sellers, attorneys as well as title companies should have been crying foul.

That really should be illegal...I admit, not wise to the game on that end (I worked in servicing after the damage had already been done)...won't doubt that it happens though. Large corps like Countrywide, BofA, Wells Fargo..etc. Notorious for not making sure everything is legit numbers wise. Didn't have the staff because loans were coming in so fast.

The shit that caused this problem in the first place was illegal at one point. The banks no longer have an interest in wether or not you could pay the loan or not. Hell, they didn't give a shit if the loan made financial sense or not because it was going to be sold to an investor who was waiting to buy it as soon as they made it.

Black people and everyday people just wanted a home. They didn't demand I/O's and ARM's. The industry pushed that on people because it was a way of creating transactions. Now instead of saving for a down payment, offers were made to get you in at no cost. Now if Tanika didn't have the money or was too much of a credit risk, what the fuck did the bank underwrite the loan for? People can talk shit about being educated about getting a house as if you're the one who's supposed to be licensed in real estate.

When the shit its the fan, its always the everyday man who gets blamed.

 

[beg4mercy]

This thread is over a lot of folks heads. they threw "Blaccs" in the title to add sting to the story. Its actually for all low income people (which comes in a races).we are not all blessed to know average document fees, how ARM's operate, or percentages n shit. This is for lenders preying on low income folks. Why are they low income? The majority have a lacc of education and this is what these lenders are preying on. Part of the american dream is owning your own home. These muphuccas are sellin dreams by the billion at our expense!!! (our meaning lower class folk....last time I looked I was upper lower class for makin 50 to 75k a year)

 

[Ill Paragraph]

Why did United for a Fair Economy (UFE) actaully LIE in their press release? You didn't even read the report yet.

Peace,

I'm not sure what that has to do with anything. Why are you getting hung up on minutiae? The fact of the matter is countless people were taking advantage of by predatory lenders during the mortgage boom. Some of you cats' only response to that seems to be, 'They should have used common sense.' That's what I'm getting at.

 

[Zero]

Yup... Colin Powell might show up but fuck it.

This mortgage company crisis has exposed black folks...think deeper.
We all now that black folks like to live beyond their means. As a businessman other industries capitalize off of this fact too. Rim companies, urban-wear, and alchol companies to name a few.

Having an MBA.. I know that Consumers Drive demand for a product. A business in a capitalist society creates a innovative product/service by meeting creatively meeting CONSUMER DEMAND.

I moved to ATL in 2003 and saw this shit unfold first hand. Here is essentially what happened. You had a business that may have say 1,000 employees.
Laquesha who has a 570 fico score and makes $38K/year after tax take home of $2200/month. Laquesha finds a mortgage guy that gets here into an ARM on a $150K property in a new construction subdivision down in College Park. Her mortgage starts at $1,100/month. Laquesha invites her coworkers that have the SAME salary as her to the housewarming. The see Laquesha in the house get excited thinking that they SHOULD be able to afford the same. So they all go see Laqueshas mortgage broker. THE PROCESS repeats itself like a virus.


Fast forward 5 years later.
Laquesha is now making $42K/ Year and taking home $2400/month. Her Arm has reset and her mortgage is now $1600/month. But last year before the ARM reset Laquesha went out and bought a HONDA ACCORD with $400/month car payments. SEE THE PROBLEM?

A year later Laquesha loses her house in foreclosure. Who is she going to blame for this? It can't be her fault? So of course it is going to be the "Crooked Mortgage Guy" who she says "put her in a house she couldn't afford". So Laquesha is now a victim........along with all her other friends in the same situation that do not want to take responsibility for making bad financial decisions.

Enter Jesse Jackson and Al Sharpton to the RESCUE!!! These guys make a living off of BLACK VICTIMHOOD. Jesse & AL see that a lot of fame/press/money can be made on BLAMING THE INDUSTRY for Black folks plight. ALL THE BLACK PEOPLE THAT GOT "CAUGHT UP" ARE MORE THAN HAPPY TO BE ABLE TO PLACE THE BLAME ON SOMEBODY OTHER THAN THEMSELVES.

"most" white folks don't seem to get caught up like that. At my job I see the MODEL THAT THE WHITE FOLKS USE.
If they married and have a combined household income of $80K and take home $4500 a month after taxes. Here is how THEY spend their money.

• The wife may drive a new Accord $400/ month
• The Husband dives a 5-10 year old pickup truck that is paid off.
• They qualified for a $300K house but decided to live within their means and buy a $200k house with a mortgage of $1600/month

Now a black couple that makes $80K is going to spend their money like this:

• The wife is going to drive a BRAND NEW BMW 5 series LEASED $600/month
• The Husband Drives a BRAND NEW Yukon payments $500/month
• They got approved for a $300K house and PURCHASED A house at $300K with a mortgage of close to $2500/month.
• Plus the wife shops and has all the latest coach/prada bags
• The husband keeps a clean set of 22" wheels on the Yukon

And we wonder why we stay in Economic Trouble as a people?

So let me guess. You've never actually been around white people, you've only seen them on TV, right? I've lived in the burbs for quite some time now and I don't knew WHERE you got this fairy tale notion that white folks are fiscally responsible. The white folks I've lived around in the burbs (in THREE states) have been RIDICULOUSLY fiscally irresponsible.

• Wife would be driving a loaded minivan or SUV
• Hubby is driving an S-CLASS Benz (leased)
• Wife is Burberry and Prada down daily
• Hubby got a Harley in the garage
• $600K house
• Every new piece of electronics imaginable
• Had the house 4 years (NEW) and already remodeling
• Kids are in private school

And their combined income is like $150K. Their credit card debt is $90K (and RISING because they have NO cash and basically LIVE off of their cards) and their debt to income ratio is FUCKED. Only difference between them and a black family is that they got a PRIME loan (mostly because they didn't get redlined coming through the door). You cats KILL ME with the self-hate bullshit.

I've witnessed WITH MY OWN EYES people with damn near the same income, debt to income and borderline credit where one gets offered a sub-prime loan and the other gets offered prime. There are so many arbitrary factors involved with how a loan is approved. When I bought my house, they tried to offer me all kinds of loans and I told them I wanted a fixed prime rate or I was out, and they gave it to me. The biggest fault a lot of these people may have is that they weren't forceful enough in negotiations and actually believed they had to take what was offered or get nothing. Combine that with sleazy mortgage brokers getting kickbacks for sub-prime loans and using high pressure sales tactics and you end up with the shit we are in now.

Some of you cats really need to go ahead and end yourselves.