As usual they are debating it to death. I've been listening to these debates for more than two decades and nothing changes. Two years ago, I got involved in some forensic work for a homeowner who got scamed when they purchased. It was a classical contract flip with a predatory lender. It was as clear as the nose on your face, and none of the authorities where willing to do anything about. Even the local attorneys wouldn't touch it on the grounds they signed a contract. In total frustration. I even managed to get in touch with 20/20 (TV news people) who where coincidentially doing a story on this topic at the time. 20/20 sent people to property, an engineer was hired (to verify poor condition), etc. The story ended up on the editing room floor (reasons unknow). There were even some comments made that the buyers somehow deserved it because they were minorities and did not bother to get informed. Nobody cares !
This is not unique to the Baltimore area as we all know. The Baltimore-Washington area, which has a diversified and relatively high population density, is a prime "Hot spot" for this type of practice. There are so many B-C & D lenders in this area its not funny. I have been running into a few lately since my own rude awakining by FHA. There is nothing new here though. LO's are trying to stay in business any way possible. The high forclosure ratio is probably not that far out of line when considering the surge in the last couple of years in the amount of loans settled.
I am not a brain surgon, Thank God, for the patients sake, but I think there is nothing more to this than the demographics of the area and like someone said previously, Caveat Emptor!! Isn't it true that most of us americans want more than we can afford. There may be some "Preditory Lending" but like the flipping issue, what they are proposing to fix it is overkill. There will probably be the usual Cannon Fodder lying around for a couple of years (I'm trying to keep my head down) but it will come and go like it is in Washington DC. Just my opinion!
PS. The author had to throw in the flipping issue as a cute cousin. I guess if you take the HUD/FHA definition of flipping (which I read in a letter from HUD to a man who gutted out a property in the Canton section of Baltimore City) which read "Any property that has sold within 1 year of its last purchase is considered a flipp." What about gutting out the property and totally renovating the property with top of the line materials and workmanship?
Hey! Hey! YOU! YOU! GET OFF OF MY CLOUD!! Sorry I had to get that out! :roll:
We have the same problem in Ohio where the City of Dayton passed a Preditory Lending Law, and the State who is against that type of Law, passed a Law to prevent the Cities from passing Preditory Lending Laws, and just this past Monday the City of Cleveland passed its own Preditory Lending Law which was patterned after the Dayton Law, and the City of Cleveland indicated that they would fight the State in court to allow them to protect their Citizens from bad loan practices, but keep one thing in mind, many of your major Lenders use the same practices as some of the so called "Preditory Lenders". So I don't think the Cities will have a chance in Court, especially if it gets to the U.S. Supreme Court. The Gang of 4 Rules that body, and Sandra Day has their Back.