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  1. #46
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    Re: This really erked me this weekend...



    Quote Originally Posted by Galen Sevinne View Post
    When CRA was passed to end redlining, it ended the discriminatory practice of denying loans based on where you lived NOT relaxed lending standards. What relaxed the lending standards in the early 2000s was the realizations that mortgage lenders could bundle bad loans thus diversifying the risk of individual defaults. It worked somewhat like health insurance in that the more unhealthy people you can pool together, the cheaper the insurance becomes as a result of bundling individual plans. The relaxing of the loan standards was a result of Sen. Gramms bill as aforementioned not opening up home purchasing to people who lived within the "redlines". The bubble had nothing to do with race as those on this thread have been suckered into believing.

    If you don't believe me just study the legislation, paying attention to the dates and synching it with the dates of the bubble and crash. Its pretty simple
    .
    Classic Galen. He makes a claim and instead of supporting it he tells you it's simple and easy to understand go research, trying relieve him of proving his BS claim.

    The "CRA" was basically done away with in the 90's when it was rewritten (by Clinton) to close the "mortgage gap".

    As part of it, for the first time banks were required to show results in a five part lending test. In order to meet the criteria of the test banks had to alter their lending practices to meet the needs of borrowers with less money or a lower credit rating.


    And another classic Galen move is to inject claims of racism to get it off topic (see below)
    Quote Originally Posted by Galen Sevinne View Post
    Sure you try to couch it in this language of it not really being about minorities but more about government making it easier for minorities that caused the problem but your language continues to be coded (whether you are aware of it or not) with innuedos of race..
    Things that aren't actually racist only appear racist when you view everything through race, class and gender...
    Last edited by NCRAVEN; 04-11-2012 at 10:20 PM.




  2. Re: This really erked me this weekend...

    Quote Originally Posted by The Fanatic View Post
    Somebody on here mentioned in another thread about needing schools to have classes and courses about the basic skills needed to survive life, handle credit, etc.
    This situation is a perfect example of that notion.
    Quote Originally Posted by The Fanatic View Post
    Stuff like this is the type of skill that I'm referring to when I and somebody else in another thread spoke about classes or courses being required in high school of basic skills and understanding of how to function in life.
    Well apparently this type of thing does exist in some places after all.
    It should be in every high school in every state IMO.

    Does The Math Add Up?

    "Many educators and school officials are recognizing the need to send students out into the world with the ability to maintain their personal finances. There are currently four states Missouri, Tennessee, Utah and Virginia that have instituted a mandatory one semester class related to personal finance. In Virginia, freshmen are required to take the course as part of their graduation requirements. Granted, a one-semester class is not going to teach a student everything they need to know about personal finance, but at least they are introduced to the basic concepts, which is a good start."
    Will Die A Ravens Fan!!




  3. #48
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    Re: This really erked me this weekend...

    Quote Originally Posted by Galen Sevinne View Post
    When CRA was passed to end redlining, it ended the discriminatory practice of denying loans based on where you lived NOT relaxed lending standards. What relaxed the lending standards in the early 2000s was the realizations that mortgage lenders could bundle bad loans thus diversifying the risk of individual defaults. It worked somewhat like health insurance in that the more unhealthy people you can pool together, the cheaper the insurance becomes as a result of bundling individual plans. The relaxing of the loan standards was a result of Sen. Gramms bill as aforementioned not opening up home purchasing to people who lived within the "redlines". The bubble had nothing to do with race as those on this thread have been suckered into believing.

    If you don't believe me just study the legislation, paying attention to the dates and synching it with the dates of the bubble and crash. Its pretty simple.

    Sent from my DROIDX using Tapatalk
    I'm certainly not claiming that the "bubble" or the crisis is a result of race at all. I'm simply stating that the government are the ones who initially interjected a theme of discriminatory racism way back when. Because they were trying to champion potential racism within the housing/mortgage market when all they did was basically themselves admit that minorities couldn't afford the same houses that white people had and that wasn't fair.

    Now, I'm not so naive to think that there were not banks and lenders who WERE being racist and discriminatory towards giving minorities a big mortgage loan, but not all of them.

    If you can't afford a mortgage then you shouldn't even be trying to take it out and if a bank determines that your financial status is not suitable to have the responsibility of a mortgage, then as a lender that should be their right.
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  4. #49
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    Quote Originally Posted by wickedsolo View Post
    I'm certainly not claiming that the "bubble" or the crisis is a result of race at all. I'm simply stating that the government are the ones who initially interjected a theme of discriminatory racism way back when. Because they were trying to champion potential racism within the housing/mortgage market when all they did was basically themselves admit that minorities couldn't afford the same houses that white people had and that wasn't fair.

    Now, I'm not so naive to think that there were not banks and lenders who WERE being racist and discriminatory towards giving minorities a big mortgage loan, but not all of them.

    If you can't afford a mortgage then you shouldn't even be trying to take it out and if a bank determines that your financial status is not suitable to have the responsibility of a mortgage, then as a lender that should be their right.
    Well said.
    WARNING: This post may contain material offensive to those who lack wit, humor, common sense and/or supporting factual or anecdotal evidence. All statements and assertions contained herein may be subject to literary devices not limited to: irony, metaphor, allusion and dripping sarcasm.




  5. #50
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    Re: This really erked me this weekend...

    Quote Originally Posted by wickedsolo View Post
    I'm certainly not claiming that the "bubble" or the crisis is a result of race at all. I'm simply stating that the government are the ones who initially interjected a theme of discriminatory racism way back when. Because they were trying to champion potential racism within the housing/mortgage market when all they did was basically themselves admit that minorities couldn't afford the same houses that white people had and that wasn't fair.
    Firstly, I appreciate your attempts to try to understand this but I think you are still looking at it a bit incorrectly. The government never admitted, stated or in my opinion ever believed that minorities couldn't afford housing that whites could. What the government did with CRA in 1977 was to prevent the opinion of the lenders from thinking minorities couldn't afford housing like whites could. The government stepped into a situation where there was clear racial discrimination occurring in private enterprise (mortgage lenders) and regulate mortgage lenders from saying, "you can't tell people who live, for example, on "Minority Avenue" that they can't be approved for a mortgage only because they live on "Minority Avenue" when they clearly meet the same financial criteria that the guy who lives on "Whitey Blvd." meets." The process of "Redlining" would actually have a mortgage lender draw a red line around "Minority Avenue" and deny a loan specifically because you were in a red line. A white millionaire could have lived on "Minority Avenue" and not been able to buy a home. The red lines were drawn around areas that were predominately minority. This is clearly discrimination. CRA stopped the practice of red lining and opened up these areas for mortgage lending based on the same equations that the CEO on "Whitey Ave." had to meet.

    Conservatives on this board and in general politics see that suddenly minorites were able to get loans and it is an easy leap for them to think this must have caused the crash although there was no crash until over 25 years later. I am not sure how they make their argument as they haven't clearly stated it other than accusing me of "race baiting" which is similar to their calling out the media whenever they dont hear what they want to hear. It is abundantly clear to me and others who see this 25 year gap between CRA and the housing crash that it wasn't because minorities suddenly bought houses nor that the government opened up lending to minorities.

    Ending "Redlining" is really no different than the government stepping in and preventing businesses from prohibiting blacks from eating at the lunch counter, riding busses attending schools etc. There are some, like Rand Paul, who will argue against this sort government intervention. Of course, he has the privilege of being born into the majority as well as the son of a doctor so his argument resonates weekly for me. In the academic world of racial equality, this is referred to as "white privilege". It appears rather rampant here on this board. Of course their next move will be to diminish the academic world as they do the media and everything else that points out their rigid world views.

    Now, I'm not so naive to think that there were not banks and lenders who WERE being racist and discriminatory towards giving minorities a big mortgage loan, but not all of them.
    If you think "red lining" is discriminatory then you might want to rethink this as it was wide spread. I am not sure how wide spread as there must have been some companies that made loans. I don't know what percentage. Its a good question. Obviously it was wide spread enough to create legislation to end it.

    If you can't afford a mortgage then you shouldn't even be trying to take it out and if a bank determines that your financial status is not suitable to have the responsibility of a mortgage, then as a lender that should be their right.
    No argument from me here. In fact, I would like to see more government regulation around this idea. Buying a home is a huge deal and should onl be done when it is clear that you can afford it even when times are tough.
    Last edited by Galen Sevinne; 04-12-2012 at 01:40 PM.








  6. #51
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    Re: This really erked me this weekend...

    Couple points, Galen
    1.) Find ANYWEHERE on this thread someone is talking about this as a racial issue other than you.
    2.) The Crash came 25 years after the original “CRA” but only about 10 years after the Clinton admin rewrote the law force lenders to relax their lending criteria




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