The Politics of Predatory Lending
I have been interested enough about the Predatory Lending aspect of what I call "balloon" loans to watch CSpan-2 off and on all day.
I am not impressed with the outcome of the Sub Committee's questions, nor their grandstanding.
Yep, Politics as usual! But of such import that we are about to melt down a market that once was the "Goose that laid Golden Eggs" The main thrust is this.
Do the Consumer (the borrower in this case) have enough information from the industry, and from his lending Broker in particular, to make a "right" decision for himself? Of course this is the road as far as questioning the "talking heads Subpoenaed to represent their particular part of an industry that cannot ( I say again!) Cannot be controlled the way that some in Office in Washington would like to display before the public via CSPAN-2.
The industry itself is both one that is totally flexible by nature, and non-controllable by design.
There is no Congressman nor Representative that could write a Bill to control the Lending Market! In response to one Questioning Senator; "When the construction / lending Broker in this "pamphlet" says, "We are here to serve you and get the lowest interest (and best deal) for you.
" They are lying! Is that right?" "No," The Talking Head said; "In TEXAS;..
..
...
and then he was cut off by the question being rephrased by the same questioning Senator.
"No," Again the Talking Head said, " In Texas that is not correct.
I don't work for the Borrower.
But in TEXAS we have a "disclosure" to that effect on the wall, and the Borrower has to sign the disclosure that such is the case as part of the paperwork he does sign.
" Now that did not satisfy.
Nor was the question designed to be answered specifically, no matter how hard you punch a man's forehead! The question was designed for YOU! That is; if you were watching today along with me, or if you will see it on a short "Catch it" on the public airwaves tonight on the news broadcasters.
The truth, which was of course like any Senate Hearing, told in answers to questions put to these same Talking Heads of Industry in a Hidden Closed No Written Documents Allowed, NO Recordings Allowed "pre-hearing".
You see, they want the picture to show themselves as "on the ball", and "involved and intelligent" about this and any other Hearing, that the Senators all play, "Gotcha!" with both the Talking Heads of the Lending Institutions; the "Called Witnesses", and YOU, the PUBLIC! To make themselves seem to be doing "something" about "predatory lending", as a real crisis is at hand.
You see, there has been a "breath test" (i.
e.
fog a mirror, get a loan) for a few years.
And this, coupled with a mandatory "Bad Loan Default" buy-back against the Industry, is going to make a mess for a while of the Lending and Money Industry.
No doubt about it.
But, ..
..
...
who's fault is that? The Consumers? (Buyer Beware?) Or the Lending Broker, who is having to toe some serious lines in order to actually close the loans.
The rules the Broker has to work under is so onerous that he can hardly close any loan fast (less than 30 to 60 days) let alone work a scam.
The real guilt then lies with the Lending Bankers, the Underwriters? Not even.
They too have to deal with "failure to make first payments" and "buy backs" and so on.
The problem is one that is easily fathomed if you can grasp it.
The guilty party, Guilty of Predatory Lending, is the United States of America! In particular, the Senate and the House of Representatives! One questioning Senator at the end of the day wanted to ask a question with would, he said, "Answer "yes" or "no"!" Almost half the line up of Talking Heads from the Lending Institutions Group, wanted to elaborate and not answer "yes" or "no", feeling it was unfair to ask questions and demand such an answer! The Senator interrupted; and said that as a matter of fact (sir) you get your money (to lend) for free! Now, you might want to just stop there a minute and think on that! Of course he gets his "start-up" money for "free"! How else is he going to get money to "Lend"? How is he going to take advantage of the opportunity to earn huge cash interest rates and work the "point spread" if he actually has to obtain his own money by borrowing it ? In fact, no other Industry in America has to borrow it, why should he? And who could "borrow" a few million dollars to get "start-up" capital anyway? That is; without collateral.
Which is the case here! Now in case you don't understand all this high money lending industrial mess, you may get to knee-jerking when you read this, (if you had watched the CSPAN-2 Broadcast you would be doing worse!) and get to thinking, no DEMANDING something be done about this Predatory Lending and "no money down" borrowing of hard cash just to lend it to you, the Borrower at exorbitant rates! Sorry, the world don't work that way.
You see, as one man said rightly, "The Industry (weeds out the bad actors for itself) is a good one, but it is broken.
" So what is to be done? They, the Talking Heads of Money Industry, say Policing the Broker! That's the answer.
No, it is not the answer.
Not especially in Texas, it ain't! In Texas I have wondered years before why homeless people sat and lived practically outside the HUD offices? The answer is that so often, by Federal Decree, the staff at HUD had to go out on the street and give a home away! Yep, you bought, worked to pay, and then probably lost, your home.
You dream.
But there were (are?) ways to get a home free! That is one that has been foreclosed upon.
That is; unless you play the game straight, and work hard, and are raising a family.
Then you get to pay! Pay for all the shenanigans those that are in a fiduciary position should be held liable and answerable for themselves! But again, the system don't work that way! A rich man lost everything.
He lost job, business, home, money, everything.
He owed money on everything, so he went bankrupt (you can't file now, without repaying, know that?).
Shortly after going bankrupt he got a gift of a home! No, not a home; a mansion! How? Well, the right Reverend Somebody, who he had been donating to, you know tithing? Gets a few houses from the old HUD to give out to the "Poor" and the "homeless".
That way the Mandated Give Away, mandated by the U.
S.
Government, Yep, your Senators, will be reached.
The Preacher, Teacher, Padre, Minister, gave a "special" home to this ex-millionaire.
It was special, because it was a mansion taken from someone who defaulted on a loan.
So the ex-millionaire got a new mansion, which is right you see? It fit his "lifestyle"! I hope your mad! Very mad! I hope you will stay mad and not take this "Snake Oil" that the Senators are putting out for sale! The Predatory Lending is being done by the System.
A System that they have messed with forever, trying to "fix" it or worse, "level the playing field" while looking out for number one! Themselves! You are not in the top "Ten"! No one cares if a working man with wife and family to feed and a house gets a sub-priced loan, dealing with some shark, just to get a home, where he now has to pay exorbitant taxes to feed the rich! He pays! And pays! And pays! Because that System does work! And that System here in America is designed to take your money, and keep it.
The Government knows exactly to the penny what a family of four would make, take, spend on utilities and food, and a house payment, and keep up a used car.
Then they inch slowly, like a Snake, up to that very penny! Oh, well, you can't take it with you can you? I hope your mad.
But who do you vote for? I give up.
I have no idea these days.
In Texas you have your eyes opened to real straight business dealings with Home Loan Brokers, who have to be licensed and have bonds.
But there is such a heavy toll of paperwork, who knows if it is all legit? Certainly not the Loan Broker! He or she, has to do exactly like those with the Golden Rules say to do.
The Golden Rule is; "Those with the Gold make the Rules"! A company, any company, creates itself.
It actually builds itself, and usually creates a new, if not real, person! the Corporation.
It, the Corporation can do anything that a real person like you can do.
Except go to Jail and get married.
It can Merge, which is better than marriage, ask those identical entities out there! And the Board should go to jail if they do something illegal.
After all, they are the majority (read holders of the Preferred Stock, i.
e.
, the Owners) stock holders.
And then they get together with an Underwriter, that's short for Under the Table.
And they create stock, but not necessarily Preferred Stock, no it is Common Stock (as in for the Common man? As in for stealing the Common man's hard earned cash he needs for retirement and the kids braces!) to "offer" over the table, (wall street)(no caps) for suckers, er, investors of the public to purchase, have and to hold.
Or is that "Left Holding"? A "Promissory Note" Common Stock is.
It is a document where-by you give them hard cash, and they "promise" not to pay you a return unless they get so glutted in their accounts that someone actually takes a notice.
This means Accountants get rich.
Rich playing "now you see them profits; now you don't!".
As the sun sits on Washington, and on your life, not to mention your wallet, we know the System inside and out.
And we are only here to serve you! Serve you up on a platter with potatoes! While the Corporation purchases "Get out of Environmental Jail Free" cards from people who have vetted (yep some Newsmen) and won the give-away Pollution Points that make their land holdings actually worth something! Now you know! You know how the System works.
And you know that nothing you do or say will change anything in your; and by the way, my; life! As the Bible states; To live long enough to bring up your grandchildren on your knee is a blessing.
" or something close to that.
I'm no scholar, as you probably can read.
But I know a good one when I get it, and where I got it, and from whom! Don't worry.
In the end the Government will pound out some more "Collectors Commemorative Coins" Quarters; dimes; nickles; paying pennies for them, and exchange them for your paycheck at eight cents for a half-dollar! Neat System, no? That is; if you can actually control it, while playing up to you, the Sucker! And make you and me believe em.
I am not impressed with the outcome of the Sub Committee's questions, nor their grandstanding.
Yep, Politics as usual! But of such import that we are about to melt down a market that once was the "Goose that laid Golden Eggs" The main thrust is this.
Do the Consumer (the borrower in this case) have enough information from the industry, and from his lending Broker in particular, to make a "right" decision for himself? Of course this is the road as far as questioning the "talking heads Subpoenaed to represent their particular part of an industry that cannot ( I say again!) Cannot be controlled the way that some in Office in Washington would like to display before the public via CSPAN-2.
The industry itself is both one that is totally flexible by nature, and non-controllable by design.
There is no Congressman nor Representative that could write a Bill to control the Lending Market! In response to one Questioning Senator; "When the construction / lending Broker in this "pamphlet" says, "We are here to serve you and get the lowest interest (and best deal) for you.
" They are lying! Is that right?" "No," The Talking Head said; "In TEXAS;..
..
...
and then he was cut off by the question being rephrased by the same questioning Senator.
"No," Again the Talking Head said, " In Texas that is not correct.
I don't work for the Borrower.
But in TEXAS we have a "disclosure" to that effect on the wall, and the Borrower has to sign the disclosure that such is the case as part of the paperwork he does sign.
" Now that did not satisfy.
Nor was the question designed to be answered specifically, no matter how hard you punch a man's forehead! The question was designed for YOU! That is; if you were watching today along with me, or if you will see it on a short "Catch it" on the public airwaves tonight on the news broadcasters.
The truth, which was of course like any Senate Hearing, told in answers to questions put to these same Talking Heads of Industry in a Hidden Closed No Written Documents Allowed, NO Recordings Allowed "pre-hearing".
You see, they want the picture to show themselves as "on the ball", and "involved and intelligent" about this and any other Hearing, that the Senators all play, "Gotcha!" with both the Talking Heads of the Lending Institutions; the "Called Witnesses", and YOU, the PUBLIC! To make themselves seem to be doing "something" about "predatory lending", as a real crisis is at hand.
You see, there has been a "breath test" (i.
e.
fog a mirror, get a loan) for a few years.
And this, coupled with a mandatory "Bad Loan Default" buy-back against the Industry, is going to make a mess for a while of the Lending and Money Industry.
No doubt about it.
But, ..
..
...
who's fault is that? The Consumers? (Buyer Beware?) Or the Lending Broker, who is having to toe some serious lines in order to actually close the loans.
The rules the Broker has to work under is so onerous that he can hardly close any loan fast (less than 30 to 60 days) let alone work a scam.
The real guilt then lies with the Lending Bankers, the Underwriters? Not even.
They too have to deal with "failure to make first payments" and "buy backs" and so on.
The problem is one that is easily fathomed if you can grasp it.
The guilty party, Guilty of Predatory Lending, is the United States of America! In particular, the Senate and the House of Representatives! One questioning Senator at the end of the day wanted to ask a question with would, he said, "Answer "yes" or "no"!" Almost half the line up of Talking Heads from the Lending Institutions Group, wanted to elaborate and not answer "yes" or "no", feeling it was unfair to ask questions and demand such an answer! The Senator interrupted; and said that as a matter of fact (sir) you get your money (to lend) for free! Now, you might want to just stop there a minute and think on that! Of course he gets his "start-up" money for "free"! How else is he going to get money to "Lend"? How is he going to take advantage of the opportunity to earn huge cash interest rates and work the "point spread" if he actually has to obtain his own money by borrowing it ? In fact, no other Industry in America has to borrow it, why should he? And who could "borrow" a few million dollars to get "start-up" capital anyway? That is; without collateral.
Which is the case here! Now in case you don't understand all this high money lending industrial mess, you may get to knee-jerking when you read this, (if you had watched the CSPAN-2 Broadcast you would be doing worse!) and get to thinking, no DEMANDING something be done about this Predatory Lending and "no money down" borrowing of hard cash just to lend it to you, the Borrower at exorbitant rates! Sorry, the world don't work that way.
You see, as one man said rightly, "The Industry (weeds out the bad actors for itself) is a good one, but it is broken.
" So what is to be done? They, the Talking Heads of Money Industry, say Policing the Broker! That's the answer.
No, it is not the answer.
Not especially in Texas, it ain't! In Texas I have wondered years before why homeless people sat and lived practically outside the HUD offices? The answer is that so often, by Federal Decree, the staff at HUD had to go out on the street and give a home away! Yep, you bought, worked to pay, and then probably lost, your home.
You dream.
But there were (are?) ways to get a home free! That is one that has been foreclosed upon.
That is; unless you play the game straight, and work hard, and are raising a family.
Then you get to pay! Pay for all the shenanigans those that are in a fiduciary position should be held liable and answerable for themselves! But again, the system don't work that way! A rich man lost everything.
He lost job, business, home, money, everything.
He owed money on everything, so he went bankrupt (you can't file now, without repaying, know that?).
Shortly after going bankrupt he got a gift of a home! No, not a home; a mansion! How? Well, the right Reverend Somebody, who he had been donating to, you know tithing? Gets a few houses from the old HUD to give out to the "Poor" and the "homeless".
That way the Mandated Give Away, mandated by the U.
S.
Government, Yep, your Senators, will be reached.
The Preacher, Teacher, Padre, Minister, gave a "special" home to this ex-millionaire.
It was special, because it was a mansion taken from someone who defaulted on a loan.
So the ex-millionaire got a new mansion, which is right you see? It fit his "lifestyle"! I hope your mad! Very mad! I hope you will stay mad and not take this "Snake Oil" that the Senators are putting out for sale! The Predatory Lending is being done by the System.
A System that they have messed with forever, trying to "fix" it or worse, "level the playing field" while looking out for number one! Themselves! You are not in the top "Ten"! No one cares if a working man with wife and family to feed and a house gets a sub-priced loan, dealing with some shark, just to get a home, where he now has to pay exorbitant taxes to feed the rich! He pays! And pays! And pays! Because that System does work! And that System here in America is designed to take your money, and keep it.
The Government knows exactly to the penny what a family of four would make, take, spend on utilities and food, and a house payment, and keep up a used car.
Then they inch slowly, like a Snake, up to that very penny! Oh, well, you can't take it with you can you? I hope your mad.
But who do you vote for? I give up.
I have no idea these days.
In Texas you have your eyes opened to real straight business dealings with Home Loan Brokers, who have to be licensed and have bonds.
But there is such a heavy toll of paperwork, who knows if it is all legit? Certainly not the Loan Broker! He or she, has to do exactly like those with the Golden Rules say to do.
The Golden Rule is; "Those with the Gold make the Rules"! A company, any company, creates itself.
It actually builds itself, and usually creates a new, if not real, person! the Corporation.
It, the Corporation can do anything that a real person like you can do.
Except go to Jail and get married.
It can Merge, which is better than marriage, ask those identical entities out there! And the Board should go to jail if they do something illegal.
After all, they are the majority (read holders of the Preferred Stock, i.
e.
, the Owners) stock holders.
And then they get together with an Underwriter, that's short for Under the Table.
And they create stock, but not necessarily Preferred Stock, no it is Common Stock (as in for the Common man? As in for stealing the Common man's hard earned cash he needs for retirement and the kids braces!) to "offer" over the table, (wall street)(no caps) for suckers, er, investors of the public to purchase, have and to hold.
Or is that "Left Holding"? A "Promissory Note" Common Stock is.
It is a document where-by you give them hard cash, and they "promise" not to pay you a return unless they get so glutted in their accounts that someone actually takes a notice.
This means Accountants get rich.
Rich playing "now you see them profits; now you don't!".
As the sun sits on Washington, and on your life, not to mention your wallet, we know the System inside and out.
And we are only here to serve you! Serve you up on a platter with potatoes! While the Corporation purchases "Get out of Environmental Jail Free" cards from people who have vetted (yep some Newsmen) and won the give-away Pollution Points that make their land holdings actually worth something! Now you know! You know how the System works.
And you know that nothing you do or say will change anything in your; and by the way, my; life! As the Bible states; To live long enough to bring up your grandchildren on your knee is a blessing.
" or something close to that.
I'm no scholar, as you probably can read.
But I know a good one when I get it, and where I got it, and from whom! Don't worry.
In the end the Government will pound out some more "Collectors Commemorative Coins" Quarters; dimes; nickles; paying pennies for them, and exchange them for your paycheck at eight cents for a half-dollar! Neat System, no? That is; if you can actually control it, while playing up to you, the Sucker! And make you and me believe em.
Source...