Sovereign Man – by Simon Black
Say hello to the next financial crisis, brought to you courtesy of the dumbest new bill of the week: H.R. 5148: Access to Affordable Mortgages Act.
Ordinarily whenever an individual wants to borrow money for a mortgage, the bank conducts due diligence… both on the borrower as well as the property.
It’s in the banks’ interest (as well as the banks’ depositors) to ensure that the property is at least worth as much as the amount being borrowed. Duh.
Congress doesn’t agree. Apparently when banks conduct property appraisals, that seems to unfairly discriminate against some segment of the population trying to buy crap properties.
And we certainly can’t have that going on in the Land of the Free.
So with HR 5148, Congress aims to exempt certain ‘higher-risk mortgages’ from property appraisal requirements.
Curiously, this legislation reverses several provisions in the 1968 ‘Truth in Lending Act’.
It’s as if Congress is now anti- Truth in Lending and pro- whatever the hell gets the money on the street.
And of course, all of this comes at a time when mortgage rates are still near their all-time lows.
You can borrow money to buy a home today at just 4%. That’s less than half the long-term average of 8.5%, and a fraction of the 16%+ people were stuck paying 30 years ago.
Isn’t paying 4% affordable enough? Nope. Not according to Congress.
So now they’re trying to engineer yet another financial crisis by encouraging banks and other lenders to exercise minimal due diligence on their mortgage portfolio.
This comes at a pivotal time. US banks are only now just barely starting to recapitalize after the early days of the financial crisis.
They’ve unloaded their toxic assets to the US government and Federal Reserve.
They’ve borrowed money at essentially 0% from the Fed and loaned it to the Treasury Department at interest (the mother of all scams).
After six years of these freebies and taxpayer-funded bailouts, bank balance sheets are only now starting to clear up.
So what does Congress do? They propose a new law to screw up bank balance sheets all over again.
It’s idiocy on an epic scale… and it makes one wonder what team of monkeys is coming up with these ideas.
http://www.sovereignman.com/trends/new-bill-congress-engineering-yet-another-financial-crisis-14972/
“It’s idiocy on an epic scale… and it makes one wonder what team of monkeys is coming up with these ideas.”
The jews?
#1 You called it right on the joos. Who runs America? the joos and the dumb ass goi who keep supporting gods chosen Bulllllll Shittt. wake up church they are not chosen except by themselves you are no better then cattle
No politburo, no matter how well intentioned, can make economic decisions for everyone else. The state needs to stay out of monetary and economic policy. Their job is to uphold contracts, protect property rights and the freedom of association. It is not for twelve war mongering self serving economic fools to determine the fate of 315 million people when that same dirty dozen couldn’t feed themselves if they didn’t prey on those they pretend to save.
“After six years of these freebies and taxpayer-funded bailouts, bank balance sheets are only now starting to clear up.
So what does Congress do? They propose a new law to screw up bank balance sheets all over again.”
Well of course! That’s the idea. Their told by their elitist masters to find a way to screw up everything and destroy this country any way they can. That’s what they are “SELECTED” and paid for to do.
It is so very simple they want every single person in debt. They will not stop until they do.
All they need to do is control the food & water supplies to subjugate every single person on the planet, Susan.
And they’re working hard on it.
They will do that too but these assholes are going for the gold ring and cover every base. What they dont get with one they will with another. Like me I dont do debt so they lose on that one. I am sure one will come that will fit me.
In the 2000’s they had layer loans, where you did not have to tell the bank or lending people, how much you earned or even if you had a job. Just pay a 1% or 11/2% higher loan. NOW you do not need an appraisal. The housing market will crash again. THANKS you elected crooks.