Comments on: Who’s Responsible for the Housing Crisis? http://www.wisemoneydecisions.com/2008/08/18/whos-responsible-for-the-housing-crisis/ Tue, 06 Jan 2009 08:05:12 +0000 http://wordpress.org/?v=2.3.3 By: master http://www.wisemoneydecisions.com/2008/08/18/whos-responsible-for-the-housing-crisis/#comment-3792 master Wed, 26 Nov 2008 23:44:53 +0000 http://www.wisemoneydecisions.com/2008/08/18/whos-responsible-for-the-housing-crisis/#comment-3792 I completely agree, and at times am aggravated at how the media has played against this. Owners bear responsbility too. Out in Cali here, people were taking $700k mortgages which NO ONE can afford without batting an eye. I have many, many friends who are now having problems. I am all about fairness and everyone needs to own up to thier own responsibility including the companies giving out these bad loans. But we need to all learn a lesson from these situations and not just point blame. I completely agree, and at times am aggravated at how the media has played against this. Owners bear responsbility too. Out in Cali here, people were taking $700k mortgages which NO ONE can afford without batting an eye. I have many, many friends who are now having problems. I am all about fairness and everyone needs to own up to thier own responsibility including the companies giving out these bad loans. But we need to all learn a lesson from these situations and not just point blame.

]]> By: Arthur Jamieson http://www.wisemoneydecisions.com/2008/08/18/whos-responsible-for-the-housing-crisis/#comment-2306 Arthur Jamieson Thu, 09 Oct 2008 06:24:19 +0000 http://www.wisemoneydecisions.com/2008/08/18/whos-responsible-for-the-housing-crisis/#comment-2306 I think lender should properly investigate and verify repaying ability of borrower before granting any loan to minimize mortgage crisis. I think lender should properly investigate and verify repaying ability of borrower before granting any loan to minimize mortgage crisis.

]]> By: Raymond Kirk http://www.wisemoneydecisions.com/2008/08/18/whos-responsible-for-the-housing-crisis/#comment-2273 Raymond Kirk Tue, 07 Oct 2008 05:39:24 +0000 http://www.wisemoneydecisions.com/2008/08/18/whos-responsible-for-the-housing-crisis/#comment-2273 Good post, but have you thought that how these housing crises can be diminished? Good post, but have you thought that how these housing crises can be diminished?

]]> By: Mortgage Interest Rates http://www.wisemoneydecisions.com/2008/08/18/whos-responsible-for-the-housing-crisis/#comment-1947 Mortgage Interest Rates Tue, 23 Sep 2008 04:25:42 +0000 http://www.wisemoneydecisions.com/2008/08/18/whos-responsible-for-the-housing-crisis/#comment-1947 I think there were certainly some shady loan officers out there. But at the same time a lot of borrowers were lying about their financial status. Some borrowers were even buying 4 or 5 properties and having them close on the same day so lenders would not find out about the different loans. I think at times the issue is framed where the loan officers were the bad guys but I think its more complicated than that. In some cases they were but in other cases the borrowers were pushing the envelope of what was legal. I think there were certainly some shady loan officers out there. But at the same time a lot of borrowers were lying about their financial status. Some borrowers were even buying 4 or 5 properties and having them close on the same day so lenders would not find out about the different loans. I think at times the issue is framed where the loan officers were the bad guys but I think its more complicated than that. In some cases they were but in other cases the borrowers were pushing the envelope of what was legal.

]]> By: Jeff http://www.wisemoneydecisions.com/2008/08/18/whos-responsible-for-the-housing-crisis/#comment-1834 Jeff Fri, 19 Sep 2008 07:22:23 +0000 http://www.wisemoneydecisions.com/2008/08/18/whos-responsible-for-the-housing-crisis/#comment-1834 JackandJill: I think we're mostly saying the same thing. It's partly the fault of bankers/brokers/appraisers and partly the fault of borrowers. There are a lot of times in life when we have to rely on experts' advice. If a decision is important, it's a good idea to educate oneself and exercise some common sense. For example I trust my doctor's advice on most health issues more than my own. But if my doctor says I need to undergo a treatment that will take up 50% of my after tax income for the next 30 years, I'm going to get a second opinion. There are certainly some innocent people that got swept up into a bad mortgage based on someone's bad advice. But innocent is different than prudent. I feel bad for the innocent people, but only to an extent. It's hard to feel too bad when they had complete knowledge of their own financial situation, inititated the process of buying the house, had complete control over the process of getting a mortgage, and had complete freedom to shop around and get a second opinion. JackandJill: I think we’re mostly saying the same thing. It’s partly the fault of bankers/brokers/appraisers and partly the fault of borrowers.

There are a lot of times in life when we have to rely on experts’ advice. If a decision is important, it’s a good idea to educate oneself and exercise some common sense. For example I trust my doctor’s advice on most health issues more than my own. But if my doctor says I need to undergo a treatment that will take up 50% of my after tax income for the next 30 years, I’m going to get a second opinion.

There are certainly some innocent people that got swept up into a bad mortgage based on someone’s bad advice. But innocent is different than prudent. I feel bad for the innocent people, but only to an extent. It’s hard to feel too bad when they had complete knowledge of their own financial situation, inititated the process of buying the house, had complete control over the process of getting a mortgage, and had complete freedom to shop around and get a second opinion.

]]> By: JackandJillsMoneyBlog http://www.wisemoneydecisions.com/2008/08/18/whos-responsible-for-the-housing-crisis/#comment-1770 JackandJillsMoneyBlog Tue, 16 Sep 2008 04:24:43 +0000 http://www.wisemoneydecisions.com/2008/08/18/whos-responsible-for-the-housing-crisis/#comment-1770 Jeff, I completely agree that we should not give borrowers a free pass. As a banker within the financial industry I take full disclosure to heart. However, I also know that there are unscrupulous individuals in the industry and at times they are financially motivated to act in their best interest rather than their client’s best interest. This fact is also compounded by the lack of financial education. Although it is clear to recognize that you have bitten more than you can chew, when you are depending on someone’s expert advice and really you don’t know better, it is easy to be persuaded to sign on the bottom line. Jill Jeff, I completely agree that we should not give borrowers a free pass. As a banker within the financial industry I take full disclosure to heart. However, I also know that there are unscrupulous individuals in the industry and at times they are financially motivated to act in their best interest rather than their client’s best interest. This fact is also compounded by the lack of financial education. Although it is clear to recognize that you have bitten more than you can chew, when you are depending on someone’s expert advice and really you don’t know better, it is easy to be persuaded to sign on the bottom line. Jill

]]>