[Rhodes22-list] Wally - A little more on CRAs

[TN Rhodey]

Ed, Loan terms are written on appraised value of the home at close. Future
changes up or down are only relevant if there is a refinance or sale. If a
borrower has a loan they need to pay the terms. If not the bank will take
their home. Maybe I misunderstood your question? it is bad enough when you
are "upside down" in a car. i couldn'timagine being upside down in a house.
it surely would suck but it sounds like the buyer made a poor choice.
Remember the golden rule....buyer beware!

If it makes sense perhaps the lender will renogotiate terms of loan.
Foreclosures are not good for the lender especially in this market. The
buyer may decide it is in their best interests to walk away from the home
and let the bank foreclose. Many are doing just that.

What took out CA and Nevada were not CRA bank loans. The loan that took down
the West was the Pay Option ARM. This is not a sub-prime loan by the way it
is considered an "Alt A" loan. This loan actually gave you the "option" of
deciding what you wanted to pay. One of the pay options did not even cover
the interest. Stated and No doc loans were also a big problem. Just a note
that not all Stated Loans are Sub-prime. There were Stated and No Doc
conforming options for people with good credit just like there were stated
and no doc options for sub-prime. This is never mentioned

Does this have something to do with CRA bank loans?

Wally

On Tue, Sep 30, 2008 at 8:37 AM, Tootle <ekroposki at charter.net> wrote:

>
> Wally,
>
> How do your number relate to dollar value in given markets?  Let us ask
> about houses sold in western markets such as California and Nevada?
>
> The market values a year or two ago were outlandish.  They had a two
> bedroom
> house selling for 1.5 million dollars.  Suppose your loan was for 1.4
> million?  And now the market value is yesterday $840,000.  Who is going to
> pay that $560,000 difference?
>
> Inquiring minds want to know?
>
> The newspapers said that some California houses had lost 40% valuation.
>
> Ed K
> Greenville, SC, USA
> http://www.nabble.com/file/p19741195/Military%2BOptions.gif
> Military+Options.gif
>
> Ed K
> Greenville, SC, USA
>
> TN Rhodey-2 wrote:
> >
> > Brad - You post stuff as fact when it isyour opinion. I stated i didn't
> > know
> > the quality of the source up front...I admitted I wasn't sure of my claim
> > of
> > les than 50%. I said i tried to find some different numbers and could not
> > so I asked you if you had any. Hell Brad I said I wasn't sure so I was
> > looking to see some actual numbers. The last numbers I saw showed CRA
> > loans
> > out performed typical sub-prime. This was my own experience as well. Heck
> > i
> > just asked if you had any numbers to support your claim. I take your
> dodgy
> > response as a"no" If you don't have any numbers to support your claim
> just
> > say so....
> > Wally
> >
> > On Mon, Sep 29, 2008 at 8:59 PM, Brad Haslett <flybrad at gmail.com> wrote:
> >
> >> Wally,
> >>
> >> First, a "truth in posting" statement is necessary.  I'm not going to
> >> waste my time parsing ANY data that has Keith Ellison as the source.
> >> Anyone who knows me well knows that I have no issues with
> >> African-Americans or Muslims.  I have huge issues with 'black whatever
> >> he was converted to the Muslim faith' Keith Ellison.  Call me racist,
> >> bigoted, ignorant, stupid, fill in the blank here ________________,
> >> whatever.  Sorry, I'm not even going to look at anything Ellison
> >> quotes or anything anybody else quotes that is  attributed to Ellison.
> >>
> >> The pdf document is from a law firm defending the CRA, hardly an
> >> objective source.
> >>
> >> Since you seem to enjoy repeating the statement that my sources don't
> >> back up my statements, all I can say is "buy a mirror". You yourself
> >> said you hadn't watched the videos I posted.
> >>
> >> Wally, it doesn't matter if we meet halfway in Nashville, get out the
> >> rulers, and end this argument once and for all. We're in deep shit
> >> either way (but I am looking forward to your numbers from a credible
> >> source and your comments on the videos).
> >>
> >> Brad
> >>
> >> On Mon, Sep 29, 2008 at 4:29 PM, TN Rhodey <tnrhodey at gmail.com> wrote:
> >> > Brad - I said CRA sub-prime defaults  represented less than 50% of
> >> sub-prime
> >> > defaults. I hadn't checked in a year or so ....your claim blaing CRA
> >> made
> >> me
> >> > curious . .A quick check shows I was way off.  CRAs actually have
> >> > performed much better than i remembered. They do not perform as welll
> >> as
> >> > prime but much better than traditional sub-prime and Alt A.  Do some
> >> google
> >> > searches on CRA defaults.
> >> >
> >> >  see link from Slim's paper below. Check out the embedded PDF in the
> >> article
> >> > for breakdown on CRA loans defaults in top 15 US cities. I don't know
> >> > anything about the paper but the PDF contains data refuting the claim
> >> the
> >> > CRA defaults are the problem. I searched hard but could find no claim
> >> with
> >> > numbers supporting  your position that CRA was the problem. In fact
> >>  people
> >> > (mostly politicians) making the claim didn't provide numbers and
> didn't
> >> seem
> >> > to know what they are talking about......present company excluded of
> >> course.
> >> > :-)
> >> >
> >> > Do you have NUMBERS  to support your claim that CRA loans are the
> >> problem?
> >> >
> >> >
> >>
> http://minnesotaindependent.com/10179/against-all-reason-bachmann-and-others-blame-1977-fair-lending-law-for-adding-to-economic-crisis
> >> >
> >> >  A quick check also confirmed most of the Sub-Prime Mortgage lenders
> >> did
> >> not
> >> > have to be concerned with CRA. If ones reviews the numbers you can
> come
> >> to
> >> > the conclusion the CRA loans actually have helped keep foreclosures
> >> from
> >> > being worse. If these folks were not in a CRA loan they would be in
> >> typical
> >> > sup-prime ARM with adjustable rates, high fees, and pre-payment
> >> penalties.
> >> >
> >> > A while back there was a  Congressional GAO report breaking down
> >> > foreclosures in every state by type of loan. I will try to find and
> >> post.
> >> > The main problems were Alt A Pay Option ARMs, Alt A Stated, Alt A No
> >> DOc,
> >> > and Sub-prime stated.
> >> >
> >> > Wally
> >> >
> >> > <
> >>
> http://minnesotaindependent.com/10179/against-all-reason-bachmann-and-others-blame-1977-fair-lending-law-for-adding-to-economic-crisis
> >> >
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