Saturday the New York Times published an article entitled "Web Help for Getting a Mortgage the Criminal Way."
Here's the reality: people need housing. If Tim and Mary and the kids are paying $1400 a month rent and have lived in the same place 4 or 5 years and the landlord will vouch for them, i.e., they've paid the rent faithfully, then they deserve a crack at home ownership, credit report be damned! I see too many individuals and families who obviously love the city / town / neighborhood they're in, aren't going anywhere, and if that rent payment was converted into a mortgage payment, wouldn't miss a beat! Too bad the high and mighty bank loan officers don't understand. Until they do, the housing market will continue to slide in the U.S. Keep loaning money to people with no real roots or reason to stay. Keep loaning money to certain groups in order to appear "politically correct and unbiased" and your bank will someday be forced to close. If anyone ever hears of a bank that comes out with a plan to give people like those I've mentioned a chance, please let me know!
Now about that NYT article by Julie Creswell: Creswell is being raked over the coals in the blogosphere--- the following is an excerpt from The Common Ills Blog.
Julie Creswell proves she listened to NPR this week. I believe that story aired on Wednesday or Thursday but it's been a long week. On Saturday, Julie Creswell offers up "Web Help for Getting a Mortgage the Criminal Way." It's not just a pale copy of the NPR story, it's also wrong. There is nothing "criminal" about what's going on. It soon will be. Laws are being discussed (as NPR
informed you) and one business is going to drop the procedure in September. But it is not currently "criminal." (What is it? People allow others to piggy back on their good credit for a fee.)
And "experts" may whisper to Julie Creswell that this "has caused a huge spike in loan defaults in recent months" but Criswell, an alleged reporter, should have known better than to fall for that crap. There is no study to back that. Predatory loan companies have caused the huge spike and there are studies to back that up. But Creswell wants to buy into the lie that a national crisis can be pinned on a few shady individuals outside the normal business setting.
Danny Schechter covers this (and more) in his documentary In Debt We Trust. Creswell's an idiot. (And apologist/propagandist for the loan and housing industry. Don't believe me? Well I think "experts" say that and, like Criswell, feel no need to check it out before publishing.) Libby
Lewis, in an audio segment that is appoximately five minutes ("Good-Credit Holders Lend Their Histories for Cash") and I see that it aired on June 13th (Wednesday). Good to know that three days later the Times can (mis)report the exact same story. If you're unable to listen online,
you can read what's a summary of Lewis' report but don't waste your time on Creswell's nonsense.