More than a decade after home loans triggered the worst financial crisis in a generation, the strict lending requirements put in place during its aftermath
are starting to erode. Home buyers with low credit scores or high debt levels as well as those lacking traditional employment are finding it easier to get credit.
Mortgage writers are required by law under the CRA to write loans to people that wouldn't normally qualify. They gave stiff fines if they don't meet the percentage required. The government created subprime lending thru law.
How long until banks pay you for taking a mortgage as it's happening in bankrupt Western Europe countries?
KeeangaYamahtta 'erode' is an interesting word choice. does this count as passive-voice? it should.
Here we go!!! We all know how this plays out.
No bailouts this time.
Yes, nothing helps the U.S. economy more than even more people going into debt for things they couldn't afford in the first place.
If banks had followed the standard loan criteria of debt to income ratio, demonstrated history of paying bills on time, there would not have been a 2008 economic crisis - at least not as severe.
Another bubble that will burst.
Pickup truck - must be risky!
They eroded before enacted. Banks have been offering me ARM loans from that day since. Nothing changed
I know it's been a while, but did we really forget how bad things got?
What could possibly go wrong
Not eroding, they are being ended by law. The CRA requires mortgage lenders to write loans to under-qualifying people or face fines. The government created subprime loans by law.
another deregulation blunder at the consumers expense! history repeats itself in the name of greed!
What could possibly go wrong? 😐
Deja vu all over again. (Yogi Berra)
A lot of people get paid when a house sells as opposed to when one rents.
Strict lending requirements that were put in place after the financial crisis are being eroded by bankster capitalist
This ended welll in the past🙃
What could possibly go wrong?
Urbanites and suburbanites want to control America. However, such folks would not know what to do with out rural folks. Especially, farming folks. What would urbanites and suburbanites eat in their fanciful restaurants? What a HOOT... next POTUS SHOULD BE A FARMER.
Hopefully people have learned not to borrow more money than they can pay back. I mean, the government shouldn't need to hold the hands of adults and make good decisions for them.
GlennKesslerWP I have a feeling we are going to go past 'recession' into a full blown depression. Mostly because we have insanity in the White House, but please, carry on.
GlennKesslerWP And here we go again. This is what happens when you literally let the banking industry get away with 2008. What a surprise--they're right back at it.
Glad we learned so much from last time.
Another sign of trouble: I get calls from 'flippers' who are trying to find a greater fool to buy their under-contract but not closed properties without so much as a superficial touch-up. (Sometimes they find one.) That happened in 2005....
GlennKesslerWP Good call!
Rut roh.
This explains my neighbors
This is how we got into trouble in 2008
... is this a joke?...
Because that worked so fucking well the last time.
Sounds like a subprime crisis but ok
can i get your dealer's number? hook a sister up.
Is this for real? 😳
2nd time I've used this gif today but here we are
Not good. The last time we did this we found out those mortgage holders didn't belong in those houses.notendingwell
Oh dear
Here we go again.
Which is exactly what happened right before the last financial crisis. Will these people ever learn?
You can’t be this stupid.
Here we go again...
AbsurdTurd is now banking on a MorgageScam to boost his failing economic policies. This is going to end in yet, another bunch of taxpayer funded TrumpBailout Money for the 5 big Banks. TrumpRecessionIsComing
2008 ring a bell? Anyone?
I think this time we should call their 'too big to fail' bluff
I got this crazy movie for you guys it's called The Big Short.
See: 2008
hey have you guys seen the big short?
uhhhh
Why would you poison the well like this
Recession ahead
This is gonna age really well.
Republicans ruin the economy every time.
Because it worked so well last time
1) Per the CRA mortgage lenders are required by law to write a percentage of loans to people that wouldn't qualify normally. Yes, government created these subprime loans in a law. 2) If you sign the loan you are responsible for its payback. Not the taxpayers.
Is this a familiar refrain?
Uhhh
yeah and they can spend 4x what the home is worth
DIDN''T WE GO THREW THIS IN 2008.
Let’s encourage further risk taking before a potential economic downturn. Hell, I’ll just by two houses using the credit line from my current house so that my grandkids can live above their means.
Hell yeah! Yo Chase tryna hook me up with a sick loan?
Home buyers with low credit scores or high debt levels = sub prime crisis2.0