“Best practices†required that the lender accept “non traditional†evidence of ability to pay – and the reason such evidence was non traditional is that it is not evidence. If a mortgage business followed HUD “best practicesâ€, as in practice it had to do, it meant they were allowing borrowers or their loan officers to make $#!% up.
Tag: affirmative action
Ambac argues fraud committed for profit caused the crisis
I of course, argue that government pressure to make mortgage loans caused the crisis. After all, the specific examples bad loans that Ambac lists in its lawsuit against Bear Stearns, are all loans that were made to poor people, though Ambac provides no information that would identify the race of these poor people. Ambac, however, argues that Bear Stearn made bad loans, lied that the loans were fine, and sold …
Curious cuddles between the Cathedral and Islam
If someone is a called a “moderate Muslim”, he is probably part of the establishment, part of our ruling elite, or spends much of his day in their circles. If someone is a Muslim, and part of our ruling elite or close to it, he is probably a terrorist, or spends much of the rest of his day in their circles. There is at most one degree of separation between …
Falkenblog locates the guilty
Falkenblog has an interesting quote from Harvard, wherein in 2003, back before the financial crisis, Angello Mozilla gives politically correct bullshit justifying every bad thing the banks did to cause the financial crisis on the basis of race and affirmative action. That means there is currently a homeownership gap of over 25 points when comparing white households with African Americans and Hispanics. My friends, that gap is obviously far too …
affirmative action, bad loans, bailout, crisis
The New York Times explains: creditors came to believe that their loans to unsound financial institutions would be made good by the Fed — as long as the collapse of those institutions would threaten the global credit system. Bolstered by this sense of security, bad loans mushroomed. Of course any crisis is multicausal. I have been blaming affirmative action loans. But instead of pushing back against government pressure to make …