CBS NEWS!!!!!!!!!

[Leon Stewart]

<span style='color:darkblue'>David & Ray,

I saw it advertised too. You get the impression it is new stuff.

It is teased & touted as follows: "...and you will be surprised who is behind it!"

Got my attention...

David C. Johnson, Raleigh</span>

All this hype don't matter since Congress have had two recent hearings on preditory lending, and we have had one or two locally here in Cleveland, and the State Legislature is contemplating passing a law to keep local governments from passing laws (for the next three years) curbing the activities of Preditory Lenders. You have to realize that these politicians are controlled by various lending entities. The banking Industry is one of the most powerful Lobby Groups in the Country. The government has all the information they need on Preditory Lending, but if they are forced out of business, a lot of Appraisers will go with them, and don't forget these guy's live or die by inflated values.

leart3

 

[Caterina Platt]

The City of Albquerque has drafted their own goodie for predatory lending.

The background for their supposed need for the legislation is a case that is strictly fraud, not preditory lending. Seems a lady offered $20,000 to some folks to pay off their debts if they gave her the deed. (Dumb de dumb dumb) They did, she mortgaged the property for $80,000, kept $60,000 and hit the road without ever making a single payment.

This proposed bill would not allow any lender to make a profit exceeding $800 on a single loan. If the interest rate exceeded the current FHA rate by more than 3%, the lender could be fined $50,000. Sounds good in theory until you start to consider B- or lesser borrowers. Knowing that half of my state is probably in this category, I'd be willing to bet the passing of such a bill would dry up a good chunk of mortgage money. Can you say real estate market in the dumpster?

Geez, if they'd only enforce the RESPA laws on the books...... I hope congress can get something put together that makes sense very soon. Lord knows we don't need hundreds of municipalities reinventing the wheel and adding a myriad of differing regulations.

 

[Larry Lyke]

Caterina --

That's kind of how the "points" system came into being, back when interest rates were controlled or fixed.

In about a year, most of the B-and-Beyond paper will be going to the really big banks, CitiCorp, Wells-Fargo, etc. They are moving into that market niche whole hog! They've found out how truly profitable it is.

When the big banks do it, it's not called "predatory." But, I'm not sure I know anything about fraud, but I'll know it when I see it...

Sounds like "bank ****" to me!

 

[Leon Stewart]

You have made a point that a lot of people are not aware of, and that is the participation of major banks in "Preditory Lending". In my Community Major Banks have been involved for several years. We had a newspaper article on their participation several months ago.

These Lenders are major contributors to Political Campaigns, and that is the main reason many elected officials wont make the necessary changes in the Law. They can't "bite the hand that feed them", so until the voting public take control of the situation and start to vote some of these key players out of office, I don't see any major changes.

Even with the problem we've had with the Enron situation, Congress is still having problems passing Campaign Reform Legislation, but it does seem as if they will get it to the floor sometime after midnight today for a vote.

leart3

 

[Theresa in Oregon]

Even with the problem we've had with the Enron situation, Congress is still having problems passing Campaign Reform Legislation, but it does seem as if they will get it to the floor sometime after midnight today for a vote.

leart3

From your lips to God's ears, leart3 :roll:

 

[Austin]

Strange thing about the campaign finance reform bill. Whose pet issue is campaing finance reform? Answer: John McCain. What notable group is excluded from the new bill? Answer: American Indians. What group has the highest percentage of support with their money for John McCain? Answer: Americans Indians. And you guys think this bill is the answer to a prayer? The devil is in the details. The fox can't be depended on to police the chicken coop. The name of this bill should be "The Muzzling of the common people's 1st ammendment rights of free speech and the empowerment of the big money and media interest bill of 2002." There is nothing wrong with the American system, it is the political class that is corrupt.

 

[Leon Stewart]

Theresa:

We still need the Senate to Rubber Stamp it, and the President said he'll sign it, but we have to keep our fingers crossed. This Bill is not the endall but it is a start, and maybe we will eventually get the banking Industry out of the Appraisal Business.

leart3

 

[Anonymous]

"and supplied the gasoline. This indicates that they are buying based on gas sales volume and how would an appraiser ever know what their profit margin in the gasoline is? "

Exactly. Sales price are based upon gasoline volume. The total value is a BEV, business value. You can appraise that, too. It really is not that hard to learn. There is an appraiser in Kansas City who will go anywhere in the USA and appraise Food Marts or Conv. Stores for $2,500. Outstanding reports and he teaches classes, if I recall correctly his name is Huffman. Just sell your client an appraisal with a $5000 fee, call Huffman and let him do the appraisal. Collect your half. Piece of Cake.

Terr of the Ozarks

 

[Austin]

Terrel: If one investor sells to another investor based on gasoline sale volume, I agree with you. But when the purchaser is always the gasoline supply company that owns the pumps, that seems to me to be a different ball of wax. Like for example; extortion. You charge the owner a high rate on the gasoline to keep his profits down, then buy him out for a song, then rake in the profits. If you don't know the profitability of the enterprise, how can you make comparisons?