Comments on: New Ban on Risky Home Mortgage Loans http://abcnews.go.com/blogs/business/2013/01/new-ban-on-risky-home-loans/ The latest Business news and blog posts from ABC News contributors and bloggers. Fri, 24 May 2013 20:36:00 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: nevada mike http://abcnews.go.com/blogs/business/2013/01/new-ban-on-risky-home-loans/#comment-2486833 nevada mike Thu, 10 Jan 2013 15:27:55 +0000 http://abcnews.go.com/blogs/business/?p=109602#comment-2486833 In the early 80s the banking/loan industry removed a very reliable safety valve for home purchasers. It was called an assumable loan which kept the original borrower as one of the responsible parties but allowed a new owner to take over the loan with minimal paper work and la small transfer cost. This worked for over 45 years, but the banks were not getting their new loan commissions and claimed the loan transfers were a bad investment. Fast forward 20 years : economy dumps, lmany loans held by unqualified borrowers, and the houses are now vacant. Better Plan??? Not... In the early 80s the banking/loan industry removed a very reliable safety valve for home purchasers. It was called an assumable loan which kept the original borrower as one of the responsible parties but allowed a new owner to take over the loan with minimal paper work and la small transfer cost.

This worked for over 45 years, but the banks were not getting their new loan commissions and claimed the loan transfers were a bad investment. Fast forward 20 years : economy dumps, lmany loans held by unqualified borrowers, and the houses are now vacant.

Better Plan??? Not…

]]> By: Fred http://abcnews.go.com/blogs/business/2013/01/new-ban-on-risky-home-loans/#comment-2486707 Fred Thu, 10 Jan 2013 14:15:11 +0000 http://abcnews.go.com/blogs/business/?p=109602#comment-2486707 Not as risky I guess as the $700 trillion worth of derivatives out there banks play monopoly with each and every day.Lot of of that stuff is not available to trade for the public. They are listed on usdebtclock.org Not as risky I guess as the $700 trillion worth of derivatives out there banks play monopoly with each and every day.Lot of of that stuff is not available to trade for the public. They are listed on usdebtclock.org

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