His largest donors, Goldman Sachs ($350,850), Citigroup Inc ($227,550), JP Morgan Chase %26amp; Co ($195,900), Credit Suisse First Boston ($191,294), Morgan Stanley ($186,500), Bear Stearns ($154,250), (Merrill Lynch ($125,100), AOL Time Warner ($114,000), UBS Americas ($108,500), and Lehman Brothers ($107,000) made billions that everyone knew were unethical. And now Schumer is proposing to use taxpayer money to bail them out, borrower and lender. What about those who bit the bullet and paid? This is the equivalent of the 1980s Savings and Loan scandal. Now you have to steal the money in someone else閳ユ獨 name.
Why is Senator Schumer in such a panic to bail out mortgage defaulters?
I think you are making unnecessary allegations regarding these mortgage originators or investors and their ethics. The mortgage industry is like a pendulum, they are encouraged by government to make loans available to low-income individuals and then they are later told what they were encouraged to do was ethical. There may have been some unethical acts by some people (especially many brokers), but there is no way many people who are now homeowners would have ever been so without special products. Most of the people who purchased ARMs or other specialty loans knew what they were getting into or should have. There are few exceptions to a contract from being binding, and most of these should be. I think government should be very careful before they go imposing new regulations and looking for companies to make scape goats. It is sad there are and will be many people who may not be able to make their payments, and some people may need some help (and many mortgage companies are working, and always have, with their borrowers to ease their burdens), but I would hate to see too much intervention. The pendulum will swing back, there will be people crying out that they can%26#039;t get loans, but that%26#039;s just how the cookie crumbles. If there were illegal acts someone must be accountable, but we shouldn%26#039;t be reaching.
Why is Senator Schumer in such a panic to bail out mortgage defaulters?
Streets look ugly when every other house is abandoned.
Why is Senator Schumer in such a panic to bail out mortgage defaulters?
They estimate that in the next few years up to 4 million sub-prime borrowers will be at a high risk for default. That means millions of families will be bunkrupted as well as hundreds of lenders. On top of that the legal system will be swamped with foreclosure cases and the housing market will be flooded with repo%26#039;d homes. Add to that the dustruction of the marginal loan market (which has worked well in the past) will disappear and the requirements for a mortgage will become even more stringent.
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