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ORIGINAL: mnottertail

yes, everyone in the world finances homes, where there is industrial civilization.

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ORIGINAL: pahunkboy

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ORIGINAL: mnottertail

yes, everyone in the world finances homes, where there is industrial civilization.

Prove it.

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A subprime mortgage is a type of loan granted to individuals with poor credit histories (often below 600), who, as a result of their deficient credit ratings, would not be able to qualify for conventional mortgages. Because subprime borrowers present a higher risk for lenders, subprime mortgages charge interest rates above the prime lending rate.

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You're old enough to remember. Banks used to make money chiefly by lending over prime but borrowing at prime. They didn't sell loans just because they were saleable. It wasn't the quick buck. Even this fucked up fiat currency printing press based economy used to work pretty well back then.

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ORIGINAL: pahunkboy

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ORIGINAL: Musicmystery

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Why should anyone have to have a mortgage on a house? It only drives up prices.

What are you talking about?

No one has to have a mortgage on a house. I don't on mine. Pay for cash for it if you like.

It does not drive up prices. I suppose you could argue it increases demand, but it also widely enable economies of scale, as most do finance their homes.

If no one financed their homes the prices would be a 10th of what they are now.    Then people could afford to OWN a house- rather then rent it from a bank.   (which is what a mortgage is)

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ORIGINAL: juliaoceania

All I have to say is after reading your OP it is obvious that you do not know what subprime is, or what redlining is, or what credit availability is....


Just because you are a minority in a poor area does not mean you do not have the income to buy a house. If banks are not lending because of the area the home is located, and these homes are also high minority areas, this is "redlining"... this has nothing to do with the ability of the buyer to pay a mortgage, it means even if they can afford a mortgage, they can't get one because the banks aren't lending... this is illegal.

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Actually it isnt. Plenty of non-minorities who can afford it can't get a mortgage either. The end result (and quite likely the intent) of these investigations is to put pressure on lenders to lower standards, just a backdoor way to subprime. It was the same bullshit that Frank, Dodd, Waters and their tools like Acorn perpetrated in the 90s.

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Redlining is the practice of denying, or increasing the cost of services such as banking, insurance, access to jobs,[2] access to health care,[3] or even supermarkets[4] to residents in certain, often racially determined,[5] areas. The term "redlining" was coined in the late 1960s by John McKnight, a Northwestern University sociologist and community activist.[6] It describes the practice of marking a red line on a map to delineate the area where banks would not invest; later the term was applied to discrimination against a particular group of people (usually by race or sex) no matter the geography. During the heyday of redlining, the areas most frequently discriminated against were black inner city neighborhoods. For example, in Atlanta, through at least the 1980s, this practice meant that banks would often lend to lower-income whites but not to middle- or upper-income blacks.[7]

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ORIGINAL: juliaoceania

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Actually it isnt. Plenty of non-minorities who can afford it can't get a mortgage either. The end result (and quite likely the intent) of these investigations is to put pressure on lenders to lower standards, just a backdoor way to subprime. It was the same bullshit that Frank, Dodd, Waters and their tools like Acorn perpetrated in the 90s.

Please read up on the history of the term "redlining".... you do not know what it means, your post proves it.

AGAIN..... if banks won't lend in a certain high minority area, to qualified buyers, just because it is a high minority area.... this is FUCKING REDLINING... that is what the article refers to. It has nothing to do with lending to "unqualified borrowers"... it means even if you have a good credit score, a steady job, and a down payment, the banks are still saying "fuck you"....and this is illegal.