If the DSA controlled a majority in Congress ..... (appraisal related)

[Charles West]

You don't know anything about 2007-2008 mortgage meltdown, do you? There's a reason that they called those "sub-prime loans". The mortgage brokers certainly weren't "following incentives laid out by the federal government" when making those loans and it was the reinsurance market for private mortgage-backed securities (PLS's) which began the general collapse that eventually infected the securities market worldwide. The GSE's got in on the no doc loans at the tail end of the deregulation which precipitated the meltdown. And rather than see the whole banking sector collapse due to reckless lending by the private sector, the taxpayer once again had to step forward and pony up.

Yet, prior to the Housing and Community Development Act of 1992, lenders wouldn't touch subprime borrowers. Then we have the Community Reinvestment Act, another seed to promote unwise lending. And then we have Freddie and Fannie, both of whom actively, even aggressively, promoted easy underwriting and appraisal standards. Do you see a pattern, counselor?

 

[George Hatch]

As long as somebody like Trump isn't up there enacting legislation based on spreading lies about China stealing his reelection in 2020.

Legislation doesn't originate in the Executive Branch, and the office of POTUS itself already has too much power-via-EO

 

[Surf Cat]

Yes, humans need incentives; no, those incentives do not have to be private profit; and yes, the 2008 crisis showed how badly things can go when incentives reward risk-taking and losses are later backstopped by taxpayers....

Hold on to your britches, wait till those waivers have to be analyzed as market value.

 

[Mike Ault]

Yet, prior to the Housing and Community Development Act of 1992, lenders wouldn't touch subprime borrowers. Then we have the Community Reinvestment Act, another seed to promote unwise lending. And then we have Freddie and Fannie, both of whom actively, even aggressively, promoted easy underwriting and appraisal standards. Do you see a pattern, counselor?

Yes, deregulation was bad. Next, would you like to discuss the deregulation of California energy market which allowed Enron to rape you people while they laughed about it?

The 1999 repeal of the Glass-Steagall Act allowed commercial banks to merge with investment banks and insurance companies. This created financial "supermarkets" that could underwrite securities and offer broad services. While it allowed companies to grow massive and compete globally, it increased risks for everyday depositors.
SSRN eLibrary +4

The practical effects of the repeal include:

• • Birth of Financial Giants: Banks merged to create large conglomerates. For example, the 1998 merger of Citicorp and Travelers Group created Citigroup, one of the first major test cases for these new mega-banks.
    
  • The 2008 Financial Crisis: These mega-banks combined safe commercial deposits with risky investments (like subprime mortgages). When the housing market collapsed, the fallout spread from Wall Street into everyday banking.
    
  • Conflicts of Interest: Banks faced divided loyalties. They sometimes sold complex financial products to their own clients to clear space on their own balance sheets, even if the investments were bad.
    
  • "Too Big to Fail": Banks became so large and deeply connected that the U.S. government had to bail them out to prevent the entire economy from crashing.
    Investopedia +1
    
  • Higher Fees and Consolidation: As banks grew, smaller competitors were bought out or shut down, resulting in less choices and higher fees for consumers.
    

 

[George Hatch]

Hold on to your britches, wait till those waivers have to be analyzed as market value.

Absolutely. The wisdom or foolishment of the use of less-than-1004 valuations will eventually come to light.

 

[Airstream]

I personally think appraisals would be unnecessary because socialists do not believe in free markets. And appraisals are dependent upon free markets. The very definition of the fair market value is dependent upon free markets with typically motivated buyers and sellers. But in a socialist society the government sets the price, the parameters, and the product availability. Traditional socialists reject free markets entirely, arguing that competition inherently creates inequality and exploitation, and advocate instead for central economic planning. This is the control of the means of production. Democratic Socialism & Social Democracy: These branches generally support a mixed economy. They want heavily regulated markets where the state or social safety nets guarantee universal needs (like healthcare and education) rather than leaving those services to free-market forces. [1, 2, 3, 4, 5] Socialists argue for the right to health care. Well then what about the right to housing and food? So if people have the right to housing then it should be "freely' available. Just now in NYC they want to force no credit checks on prospective tenants. Well if they want no credit checks on the ability to pay, why would they want to secure the loan for a bank (those horrible capitalists money grubbers) with an appraisal?

 

[Airstream]

The critics are wrong. We don't need people bleeding to death because they can't afford a Band-Aid in this society, and you know it

So where do you stop? Free housing, free food, free clothes, free..... Where does it end? And where does this "free" stuff come from? Nothing is free.

 

[Essexfenwick]

Absolutely. The wisdom or foolishment of the use of less-than-1004 valuations will eventually come to light.

Inflation erases all sloppyness

 

[Mike Ault]

Legislation doesn't originate in the Executive Branch, and the office of POTUS itself already has too much power-via-EO

And we are too interconnected & interdependent to do simply stand by while other people fail. Society pays for its failures one way or the other. Poor people will do something about it, at the expense of their neighbors if they have to. Much cheaper to do something about that problem on the front end. People with health problems should not have to go bankrupt. You were obviously underinsured for a long time, and only luck kept you from experiencing a medical bankruptcy. We can do better for society as a whole than that.

 

[Essexfenwick]

So where do you stop? Free housing, free food, free clothes, free..... Where does it end? And where does this "free" stuff come from? Nothing is free.

It's important for doctors and nurses to wake up early every day to wipe the butts of lazy people who caught TB from an illegal at a low cost. Highest quality and light speed health services, technology, pharmaceuticals are a human right. Even though capitalism is the only way to provide those things..sloppy, slovenly and somewhat stinky socialists are technically human.