[snakeoil]

eAs if we haven't learned anything from the 2000's, zero down payments are coming back.

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"

What fools these mortals be.-Shalespeare

So you say that foreclosures are going to rise, causing problems for the lenders. Not so! Foreclosures are a great business tactic.

A $300,000 mortgage at 5.45% for 30 years yeilds $101987.93 for the lender after 6 years (average foreclosure period.) Remember those $6000+ in fees at the loan closing? Plus, many banks are carrying the private mortgage insurance as an added profit center. Plus many banks are now selling the required fire and casualty insurances. Plus the lender probably sold the loan (usually at a price higher than the loan amount as the investor hopes to recoup the interest payments and the servicing fees, though usually the bank keeps the servicing for a fee.) ( The investor usually takes insurance out on the investment package.)

After the buyer defaults several things can happen. If the loan is a VA, FHA, SBA, Farm Credit or any of the many state programs the loan is guarenteed and the bank recoups the balance owed on the mortgage and the burden of selling the home to get back some of their money falls on the loan insurers. If the bank has kept the loan "in-house" the bank sells the property at 90% on average, usually loaning the new buyers the money for purchase with all of the new fees.. In today's market home prices are increasing on an average of 3% per year. If this home is typical, the value would be approx. $405,000 ($300,000 loan on a $350,000 home-20% down plus a bit extra from the buyers.)

So, foreclosures are a good business for the lenders.

[johnforbes]

I still remember the mortgage "experts" on TV claiming that at no time in U.S. history had houses lost much in value for very long.

Boy were they wrong!

[elklindo69]

Forbestardo is all for wall street deregulation.

Time to turn wall street back into a casino!!!

[johnforbes]

Elkin, what a silly kid you are.

Obviously, Obama's socialism is bad.

But that doesn't mean one leaps to the antipodal opposite of laissez faire (which doesn't exist anywhere in the world anyhow).

Elkin, you seem utterly devoid of any intellectual sophistication.

You seem to think in cardboard cutouts like a sophomore.

[elklindo69]

Elkin, what a silly kid you are.

Obviously, Obama's socialism is bad.

But that doesn't mean one leaps to the antipodal opposite of laissez faire (which doesn't exist anywhere in the world anyhow).

Elkin, you seem utterly devoid of any intellectual sophistication.

You seem to think in cardboard cutouts like a sophomore.

Claiming that Obama is a socialist is utterly devoid of any intellectual sophistication.

So do think it's a good idea for banks to get involved in "proprietary trading?" You know what that's code for...right?

They are basically day trading with the house money. Head's they win, tails you lose, and the taxpayers bail out the banks. That's what the GOP wants. Is it not true that the GOP wants to roll back Dodd Frank?