Thread: Financial Meltdown Reveals New Truth: Diversity Sucks!

Financial Meltdown Reveals New Truth: Diversity Sucks!
Saturday, 20 September 2008
By John W. Lillpop

With mortgage giants Freddie Mac and Fannie Mae lying in ruins and private establishments like Lehman Brothers and AIG reduced to welfare queens on public assistance, an irrefutable truth must be accepted:

Not everyone can afford the American Dream.
In much the same way as that sleek new $200,000 Lamorghini is not within my financial means, so it is that some Americans do not make enough money, or have enough cash saved, to purchase a home.

Others have poor credit, too much debt, insufficient income, or lack satisfactory employment history and stability.

To those who believe that they are entitled to a home, an idiotic notion fostered by socialists like Nancy Pelosi and most Democrats, another harsh truth is coming:

Nowhere in the Declaration of Independence, the U.S. Constitution, or the Bill of Rights, are We the People obligated to provide anyone with a 3 bedroom, 2 bath home and attached garage.

Home ownership is not a Constitutional right!

Unfortunately, federal bureaucracies, under pressure from the Democrat Party and liberal Republicans, have taken a greater interest in promoting minority home ownership statistics than in assuring that mortgages written for qualified borrowers are sound and secure.

Once again, "progressive" race pandering has proven disastrous, not only for the general population, but for the minorities it was supposed to serve as well.

Driven by the marxist drivel, "Our diversity is our greatest strength," underwriting standards have been deliberately loosened to make home ownership available to minorities and others who would not have qualified in the past.

Strict guidelines and standards were developed in the past to protect both investors and buyers from the risk of default. In many ways, that mandate has been replaced by the need to assure that diversity is served.

As a consequence, the following risk conditions have been become almost common place:

Buyers are approved for loans with little or no down payment. Previously, a down payment of at least twenty- percent of the purchase price was necessary.

Traditional debt-to-income ratios for housing expenses and total expense have been abandoned in favor of much higher, far more risky ratios.

Underwriters used to review each loan application in great detail to assure credit worthiness, capacity to repay, and collateral (confirmed value) of the property. Whatever happened to the three Cs of residential mortgage underwriting?

In some instances, mortgage loans have been knowingly approved for illegal aliens.

"Option Arm" and "Interest only" loans are sold without advising the loan applicants of the inherent dangers involved.

Just about anyone can get a "stated income" loan provided one's FICO score is high enough.

By lowering the bar enough, Uncle Sam has indeed brought diversity to home ownership. However, at what cost?

By flooding the market with unqualified buyers, government bureaucracies have artificially stimulated housing demand, which caused home prices to explode, leading to the unsustainable housing price bubble that has finally burst.

Republicans are not blameless in the great housing meltdown.

Indeed, who would have expected a conservative president to seize quasi-private enterprises and make them government property, and to bail out other private companies with loans involving billions of dollars of taxpayer money pinched from the U.S. treasury?

Whatever happened to welfare reform, tough love, trusting the free market, and other conservative rallying cries?

A critical question that must be answered by wrong-minded progressives is this:

How have minority homeowners, especially those now going through foreclosure, benefited from America's insane obsession with diversity?

A question all American may have to face sooner rather than later is: Who will bail out the FDIC?

Alternatively, to put it more simply, how is your Chinese?
http://www.borderfirereport.net/john-w. ... sucks.html

As posted on the Lou Dobbs show recently; Wall Street profits are private, but losses are shared with the public. One outrageous sub-primer borrower ; a single woman in Atlanta who bought a new 6 bedroom for $200,000. Why such extravagence in this socialist motgage program??

tubby,

They are also giving credit to illgal aliens that can't get low interest rate loans because they are high risk and can skip out and leave them with a house they can't resell. They don't really know who those people are. They have a name and no SS number.

Lots of our mortages have been backed by foreign investors too.

Dixie

Our current financial mess has been growing over the past 20 years due
to greed, illegal immigration,outsourcing,loss of manufacturing,lack of
patriotism on the part of large corporations, and yes, lack of morals, no
way will this mess ever straighten out unless all issues are addressed and
as our population grows the problems will increase what we are building
is a rich/ poor society and it is clearly stated in the idea of an Obama
presidency.

Originally Posted by Dixie

tubby,

They are also giving credit to illgal aliens that can't get low interest rate loans because they are high risk and can skip out and leave them with a house they can't resell. They don't really know who those people are. They have a name and no SS number.

Lots of our mortages have been backed by foreign investors too.

Dixie

BINGO Dixie! I believe this has played a substantial role in this financial meltdown! Of course there have plenty of American citizens who have been extended loans they had no business getting!

All out of the fallacy that every person standing on US soil deserves the right to buy a home because it's the "American dream!"

Non-sense! You deserve to purchase what you can afford to purchase, nothing more and nothing less! I thought that's how it was suposed to work in a capitalist society!

Whats scarey for me is I just went through this a good portion of my life where they then tighten the belt so tight, they crush things for alot more people. Can't open a checking account unless you can keep 500 in at all times. Minimum 1000 for a savings account. Can't cash a work check unless you have an account and if you don't there's a 15% fee for cashing it. Can't make payments, one day late on a service and it's cut. Everything paid up front and if it's not satisfactory, you have to fight everything in court. Can't cash a check without 2 credit cards. Where basics are difficult to cover if you happen to be poor.

Maybe everyone else was getting breaks but I never saw any till I was in Nebraska. Can you imagine having your fan belt break and you're driving your junky car with Florida plates and they fix it and trust you to go and get the money and bring it back? I was shocked! NEVER had I ever had anyone do that. In Florida they'd had laughed at you and told you to get your unmoveable car off their lot or have it towed......and no you can't use their phone to call anyone. A double for sure with out-of-state plates. A dentist office that says, wow, this is a chunk of money all at once, are you sure you'd rather not make payments.....don't want to leave you in a bind? In Florida I had to pay before I ever got to see the dentist and they could care less if it ment I was living in my car to do it! A boss who let me run a tab for food and gas to take it out of my pay check if I was in a bind......NEVER EVER had anyone done that before!!!
First month and security (for renting), but you can stretch the security over a few months if that will help you out........ha, in Florida it was 100% up front first, last and security and no considerations. That's after a background check, credit check, employment verification and personal reccomendations! I mean you were a scank and a risk simply because you were poor and working. Ya...loosen, but not to the point where these guys have gone! It's been from one extreem to the next.

I read a post in a Florida paper where illegal latinos were complaining that they couldn't BUY a house because their husband only made 300 a week working in the ferneries. We were denying them the American Dream. I want to know how they even made rent! Let alone mortgage and insurance and taxes! And since when was the American Dream a RIGHT for anyone......let alone an illegal alien? American DREAM......not American GUARENTEE!!!!!!!

I worked with a woman who was white and because of their income status they qualified for one of these Fannie Mae homes for the poor. They waited 5 years and were closing on a house, finally, and they tried to bump them because "minorities" got first dibs and suddenly there was a new black family that qualified. They fought it and got the house, but this whole Fannie Mae thing wasn't about helping the "poor achieve the American Dream".....it was about the minorities.

Now financially speaking.....in the old days, your housing should cost 1/4 to 1/3 of your income. If you are working full time and making 300 bucks a week, where are you going to find anyplace that rents for 300-500 bucks a month? Mortgage for that amount? Especially not in a city. I have had my utilities be more than my rent, but either way......it doesn't equal out......not with what they want to pay people.

Driven by the marxist drivel, "Our diversity is our greatest strength," underwriting standards have been deliberately loosened to make home ownership available to minorities and others who would not have qualified in the past.

Who are the "others"? Why dont they just come out and say "available to minorities and ILLEGAL ALIENS"?

Who are the "others"? Why dont they just come out and say "available to minorities and ILLEGAL ALIENS"?

Silly isn't it? Not like we are all so stupid we can't see it. Not like we can't tell who's let in and who's left out. Like illegal immigration isn't about ALL illegals, it's about the Latino ones. Reform isn't about fixing problems, it's about an open border with Mexico. It's not about stupid Americans or jobs Americans won't do.....it's about CHEAP labor!