A highly respected friend writes: "I'll grant you that prepayment penalties aren't the cause of the foreclosure "problem" but they indicate where the problem may lie: Bad lending practices."
I just wrote about prepayment penalties, The Evil Of Ignorance / Is The Pre-payment Penalty Evil?
My concern is at the origination level and while there have been many abuses I don't accept the idea of
"Bad lending practices."
Where is the logic to back this up?
Just because so many keep repeating it doesn't make it so! Just because the ultra-left want it to be so, doesn't make it true.
We've been talked into a problem, we've allowed it to become very serious!
The svengulies have mesmerized us just like the charmer does the snake! We the masses, are like those deadly snakes, we should smite the charmer, strike out and end their evil! But, like the snake we're intrigued beyond logic!
"Bad lending practices."
The "Bad lending practices." That have put so many into homes of their own?The "Bad lending practices." That haven't stopped 95% of home owners from succeeding?
Or maybe the "Bad lending practices." by the wholesale mortgage market? There indeed has been trouble here, but was it bad lending or bad management? Or was it getting caught dependent on outside investors and lenders when the ultra-left announced the right created a problem? In deed hasn't this been a self-correcting problem? Remember those lenders that crashed and burned!Where is the logic? How can the politicos and bureaucrats who can't see the problems for the symptoms cure anything?
How can new laws help when the old laws are not enforced?
How can a super bureaucracy help when the bureaucracy is a major part of the problem?
How can the government help the dead beats without adding to the successful home owners problems?
How can $7,000.00 tax credits help the troubled sellers, builders and the banks without reducing every other seller's home value by $7,000.00?
Bill
William J Archambault Jr
