Re: Demand that US presidential electors investigate Obama's eligibility

On 9 dec, 15:09, Jim Yanik <jya...@xxxxxxxxx> wrote:
James Arthur <bogusabd...@xxxxxxxxxxx> wrote innews:vWl%k.644$c35.338@xxxxxxxxxxxxxxxxxxxx:





Jim Yanik wrote:
James Arthur <bogusabd...@xxxxxxxxxxx> wrote in
news:q9g%k.676$7I6.120@xxxxxxxxxxxxxxxxxxxx:

bill.slo...@xxxxxxxx wrote:
On 5 dec, 21:05, James Arthur <bogusabd...@xxxxxxxxxxx> wrote:
But the problem wasn't the top level social engineering - which
happens to have worked -
In what way did it work, other than to strip poor people
of their money, and drag the rest of the system down?

but the failure of the front-line loan-makers
to exercise due diligence on the people to whom they made the loans.

Q: Who's charged with due diligence?  Who sets the standards?
(hint #1: Google "automated underwriting".)
(hint #2:

http://query.nytimes.com/gst/fullpage.html?res=9c0de7db153ef933a0575ac0
a96f958260&sec=&spon=&pagewanted=all

Fannie Mae Eases Credit To Aid Mortgage Lending

By STEVEN A. HOLMES
Published: September 30, 1999

In a move that could help increase home ownership rates among
minorities and low-income consumers, the Fannie Mae Corporation is
easing the credit requirements on loans that it will purchase from
banks and other lenders. )

(Oh, and before you fabricate another excuse from whole cloth:
"Affordable housing goals and subgoals are set for us by the U.S.
Department of Housing and Urban Development, or HUD." --Freddie Mac)

This wasn't a failure of policy, but rather an epidemic of
irresponsible banking - the fraudulent exploitation of  the system
set up to provide affordable housing by people who wanted to write as
many home loans as possible without going to the trouble of checking
out the borrowers.

You make a number of bald assertions, with no support.

James Arthur

once a loan is made,all depends on the borrower to make the payments.
Not much the loaner can do -after- the loan is made.

I'm not sure how that ties in...

it's about the other guy's comments about lenders not exercising "due
diligence" on the borrowers.

Precisely because the lender is relatively powerless after the loan is
made, the lender ought to spend time on working out whether the lender
is likely to repay the loan.

The banks have evolved ways of doing this over the years which tended
to make it difficult for low-paid members of minority groups to home
loans. Congress set up a scheme that was designed to encourage the
banks to be more flexible in their assessment of the credit-worthiness
of these people, by putting more weight on the stability of their
employment record and relatively less weight on the size of the
deposit that they could come up with.

Because this meant more work for the banks - it is easier for them to
find out how much money a potential borrower has in their account than
it is for them to contact present and past employers and work out
whether a potential borrower is going to remain employed - Congress
arranged things so that the banks made more money on these loans.

The stupidly greedy banks proceeded to make as many loans as they
could, but skipped the thorough checks on credit-worthiness - which
would have taken time and limited the number of potential borrowers -
with the results we see today.

--
Bill Sloman, Nijmegen
.

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