Need More Stress in Your Life?

So let’s say you wake up one morning and it hits you, you just don’t have enough stress and anxiety in your life. What to do. What to do. Answer? Try buying a house.

We did. And all indications are the deal has fallen through. Why, you ask? Because we made the mistake of thinking all the people involved were born and raised on planet earth. Not true.

A few things became clear to me as we went through this process. First, I am convinced that banks are purposely keeping the housing market in bad shape so they can blame it on the badly needed financial regulations that recently went into law. The bank’s will whine and say, Hey, the regulations did it. They pour funds into the pockets of those in congress, primarily Republicans it seems, and they hope and pray, congress will undue the regulations (which would be an utter disaster) so they could go back to gouging and ripping off people left and right and lead us down the path to yet another recession.

We heard of one instance where a fellow wanted to buy a house for $200,000. His annual salary is in comfortable excess of $100,000 and he had $80,000 to put down. He was denied because three years earlier his ex-wife missed two mortgage payments on a house they’d owned. My closest friend Michael is a Marine who lost his legs in Vietnam. His bank records clearly show the disability money coming in from the VA. Didn’t matter. The bank still asked him to produce documentation proving he’s a disable vet.

And then, of course, there are the bizarre and, some might say, predatory policies of a number of banks. For example, let’s say your credit score is 659, not too bad. And the bank tells you as long as the credit score is 640 or above, they’re happy. So you sit back in your easy chair, take a sip of coffee or tea, and allow yourself to feel good. Not so fast. The bank applies its algorithm which automatically takes 20 points off your credit score. You be under 640.

At least now I know the word algorithm is Latin for We’re gonna rip you off!

Like I said, looking to add some stress in your life? Try buying a house.

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One thought on “Need More Stress in Your Life?

  1. Peter I certainly sympathize with your situation and agree that purchasing a home is certainly difficult process. Placing the blame on the Republican Party is utterly ridiculous. If any one party is responsible for the current housing crisis it is the Democratic Party. The fact is that the roots of this economic crisis go back to the Clinton and Carter Administrations, the radical group ACORN, and Rep. Barney Frank (D-MA) and Senator Christopher Dodd (D-CT). Here are the facts: • Under President Jimmy Carter, the Community Reinvestment Act (CRA) was passed. It required federal financial institutions to encourage banks to give home loans to persons with little credit and low income. Economist Russell Roberts said that the CRA played a major role in creating the sub-prime mortgage crisis in the U.S. • Under Bill Clinton, the CRA was expanded and Clinton set targets for low-income home ownership at the Department of Housing and Urban Development and at Fannie Mae and Freddie Mac. Banks were forced by the federal government to provide bad loans to unqualified people.• Rep. Barney Frank (D-MA) is Chairman of the Financial Services Committee in the House of Representatives. In 2003, he said of Fannie Mae and Freddie Mac: “These two entities – Fannie Mae and Freddie Mac – are not facing any kind of financial crisis. The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.” In the late 1980s and early 90s, Frank was engaged in a sexual relationship with Herb Moses, who was Fannie Mae’s assistant director of product initiatives! Bill O’Reilly exposed Frank’s involvement in the mortgage crisis: YouTube – O 'Reilly – Barney Frank Had Affair with Fannie Mae Exec. Frank looked the other way, while our economy was being destroyed by federal policies created in Clinton and Carter Administrations. • Senator Christopher Dodd (D-CT) is head of the powerful banking committee in the Senate. He and Barney Frank consistently resisted attempts by the Bush Administration to closely regulate Fannie Mae and Freddie Mac. Dodd also got preferential treatment from Countrywide on two mortgages. Countrywide was one of the biggest subprime providers. • Barney Frank and Christopher Dodd received thousands of dollars in contributions from Fannie Mae and Freddie Mac over the years. Dodd has received $133,900 since 1989; Frank received $40,100. (While in the Senate, Barack Obama received $105,849).• As long ago as 2003, President Bush was trying to get the House and Senate to carefully monitor the actions of Fannie Mae and Freddie Mac. His efforts were rejected by Democrats. • Obama associates headed Fannie Mae and Freddie Mac during the years that the crisis was getting out of control. Obama friend Franklin Raines ran Fannie Mae and collected $50 million from it. Obama friend Jamie Gorelick worked for Fannie Mae and earned $26 million; Jim Johnson, formerly Obama’s vice president search committee chairman, hauled in millions from his work with Fannie Mae as CEO. • ACORN, the socialist group that routinely engages in voter fraud, was involved in pushing for risky loans to people with bad credit histories or little money for down payments. ACORN intimidated banks in Chicago and elsewhere to give risky loans! Obama actually trained ACORN workers when he was a community organizer in Chicago! ACORN used provisions of the Community Reinvestment Act to delay or halt efforts of banks to merge or expand until they had lowered their credit standards!

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