Re: Rep. Ellison Challenges Wall Street Apologists

backdoc95 — Thu, 25 Sep 2008 06:25:30 -0000

As a state representative I am in agreeance with Rep. Ellison. To add to his article, I do believe that what got us here was the loan practices of two to four years ago. Not eight, and certianly not 30 years ago. I am a product of the Atlanta Mortgage Consort. (AMC) . The group was formed to make certain housing was available to low to moderate income minorities. This loan came with credit score requirements and documentable income requirements. I paid my loan off.

What has happened today and is currently happening, most inverstors saw coming a few years ago. "stated" income is the main problem. Our unregulated or less than properly regulated mortgage companies allowed a person making 10k a year, say they made 100k a year, then gave them a loan based on the 100k. To add insult to injury, the unregulated or less than properly regulated mortgage companies gave ARM's or adjustable rate mortgages. And did the interest rate adjust after two or three years? Try months.

Lowering the credit scores or accepting a lower credit score with explanation would have been the preferred route. Of course accepting a lower credit score accross the board, not so wise.

The fix will come with a 700 billion dollar bail out. If we can spend that kind of money on foreign aid, we can spend it on domestic aid. As the President said, allowing the market to crash will take the average American to a place whereas, I estimate, gas would be around $10 per gallon and milk around $12 per gallon. The fix will come with verfied income, fixed mortgages. The credit scores must be lowered, because this crisis has caused many Americans to miss mortgage payments taking the scores to the 550's and 650's.

Currently there are plans to take section 8 renters to home owners. Everything fits, except the credit score requirements.

Many instances in our free enterprise system, folks try to offer help in one hand, but since you're in need of assistance, they hold double penalties in the other hand. Buy a car from a new car dealer, get a instant, depreciating, not-an-investment, great transportation, at zero percent interest. Go to a used car dealer, get 12% interest rate. A person who is struggling is offered a home, with assistance to get financed. Then given an anchor in the way of an ARM.

When we offer assistace this time, make it truly a christian offering. One that any politician or mortgage company employee or owner would be glad to have. If we lawmakers, legislate and our judges, interpreted the law just and equally.......All I'm saying is do unto others.......... We'd be a better America. God bless America

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Re: Rep. Ellison Challenges Wall Street Apologists