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States are growing increasingly frustrated with banks foreclosing on homes; so much so that some states are threatening banks with legal action if they don’t mend their foreclosing ways.

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Huh? That doesn't even make sense. If people don't want to pay their mortgage, they're just supposed to get a free house? Why is this being called the "foreclosure" problem? It should be called what it is, the "people not paying their mortgage" problem.

As for this "predatory lending" thing, if fraud was committed, then the people responsible should be charged with fraud. Period. If the government wants to outlaw negative-amortization loans, then do it. But you can't let it happen and then go back and retroactively punish the taxpayers for it. These people made stupid decisions, and they want everyone else to suffer for it. That's absurd.

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1776 wrote:

Continuing the march of the nanny state in which people are not held responsible for their actions:

 

http://www.bankingmyway.com/real-estate/foreclosures/states-banks-foreclose-your-own-risk?cm_ven=bmwunited

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The subprime numbers are miniscule compared to the collapse of the securitized loans numbers. That's what brought down the house of cards. The subprime problem could have been cleaned up easily. It's not nannying the people that's the problem. It's the relationship of the Treasury with Wall Street, banks with government, and globalization.

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stop_bailouts wrote:

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States are growing increasingly frustrated with banks foreclosing on homes; so much so that some states are threatening banks with legal action if they don’t mend their foreclosing ways.

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Huh? That doesn't even make sense. If people don't want to pay their mortgage, they're just supposed to get a free house? Why is this being called the "foreclosure" problem? It should be called what it is, the "people not paying their mortgage" problem.

 

As for this "predatory lending" thing, if fraud was committed, then the people responsible should be charged with fraud. Period. If the government wants to outlaw negative-amortization loans, then do it. But you can't let it happen and then go back and retroactively punish the taxpayers for it. These people made stupid decisions, and they want everyone else to suffer for it. That's absurd.

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Fraud was, and still is (see tax credit) endemic, and yet the US is asking Afghanistan to clean up it's act. The FBI established this a long time ago, and yet were denied the resources to investigate.

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1776 wrote:

Continuing the march of the nanny state in which people are not held responsible for their actions:

 

http://www.bankingmyway.com/real-estate/foreclosures/states-banks-foreclose-your-own-risk?cm_ven=bmwunited

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actually the article is about states attorney generals going after lending institutions who engaged in predatory lending - it has nothing to do with borrowers.

"for state attorney generals to take legal action against mortgage lenders who issued exotic mortgages that were structured so it would be almost impossible to repay them, especially in a tough recession that’s crushed beleaguered homeowners."

and their MAIN objective is to force banks to MODIFY loans (instead of foreclosure).

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Jazzman wrote:

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Fraud was, and still is (see tax credit) endemic, and yet the US is asking Afghanistan to clean up it's act. The FBI established this a long time ago, and yet were denied the resources to investigate.

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Then fix that problem. Don't make innocent taxpayers pay for it. If a murderer escapes justice, do you put everyone else in jail to make up for it?