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"bought the properties for pennies on the dollar"??? Mortgage companies have to bid what their full mortgage (plus fees) is at a forcloure sale. How do you consider biding $300,000 on a $150,000 house as buying it for "pennies on the dollar?
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LOL! Your spreading pure spew there. They buy them for what ever the highest bid is. If it's 10 cents that's what they get them for.
1. Forced GM and Chrysler into bankruptcy-wiped out grandma, grandpa along with the rest of us.
2. Shot gun weddings of the failing mortgage companies to large banks-Now the federal government is SUEING the new owners for past abuses-Hey this is a great way to destroy the large finacial firms and put a stop to ALL lending
3. More infrastructure projects-the administration is advocating ballooning the deficit further to create low paying short term jobs-what a great idea.
Boy, surviving this administration's policies is job one. Let's hope we can rid of these clowns before they totally destroy Our way of life.
The government forced some of these banks to buy some of the worst offenders, and now they want to sue the banks?
Government idiocy, at best.
1) The liberal underwriting policies utilized by Fannie and Freddie in purchasing home loans from banks over the past ten-plus years.
2) The government's failure to control Fannie and Freddie despite warnings from politicians and economists over the course of many years.
3) Federal pressure on the big banks to generate loans to high-risk borrowers. The feds have a number of ways to punish banks that do not "comply."
4) The role loan applicants played in overstating their own incomes.
There is a lot more going on here than meets the eye, and the average financial reporter thinks it's too complicated for you to be interested.
http://clinton6.nara.gov/1993/12/1993-12-08-briefing-by-bentsen-and-rubin.text.html
The proposed reform package we are unveiling today follows the President's
directive and fulfills the promise of the law. It will channel billions of
dollars a year in new credit into America's distressed communities.
Q With regard to enforcement actions for an institution that's not applying
for a merger, what specific enforcement actions might you envision being taken
if it's in substantial noncompliance?
MR. LUDWIG: Well, we'll have the full panoply of all our enforcement
armorarium, which includes cease and desist orders and civil money penalties in
some cases.
Q So you could apply those, because you hadn't up until --
MR. LUDWIG: We have not, and it has not been part of the regulation. It will
be part of this regulation.