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eric pebble

Mortgage/credit Fraud Was The Cause Of The Hell We Are In Today

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"So why have property prices crashed so much, and stayed low since?

Estate agents and economists are united in pointing the finger at the banks and their lending practices. While eight times income was rare, says Boyd, six or seven times wasn’t. The British banks were joined by the Irish banks, then American sub-prime lenders, in flooding buyers with easy finance. “If I were one of the banks lending at the time, I deserve to lose my shirt. They were completely reckless, not just with their shareholders’ money, but also their customers’ lives,” says David, who borrowed from one of the major UK high street banks."


Read the whole article here: & Remember: This could happen on the UK mainland soon, although with the criminal levels of immigration - it may be a damp squib. But - the key point is clear: House "prices" are at the insane non-sustainable levels today thanks to credit/mortgage fraud.


i.e. PREDATORY LIAR LOANS


Edited by eric pebble

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eric - massive fan of your work.

Obviously where owner occupiers came unstuck it was self-certified interest-only lending at very high loan-to-value that enabled them to kipper themselves, but as I posted on another thread there's suggestive evidence that it was BTL that kicked the whole thing off, as per this annotated figure from the 2010 Treasury Report Investment in the UK private rented sector, (I added the annotations).

Mortgage%2Bmadness.png

From this post.

If one buys your proposition that it's a story about lending (and I do) then as the mad prices are still with us then it's clear that it hasn't been self-certified interest-only lending to owner-occupiers (IO liar loans) driving prices higher since about 2012 and neither was it IO liar loans in the 1997-2003 phase because they hadn't really made serious in roads into the market at that point. IMO interest-only liar loans were making the running from about 2003-2012, hence they are a massive part of the story, but I think the slightly different claim that they were the start of all this won't hold up. IMO it's always been an interest-only story and there was interest-only lending in both the buy-to-let and owner-occupied sector up until 2012, but that lending hit the BTL sector first, hence the start of the story is relaxation of underwriting standards applied to mortgage lending to aspiring landlords.

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Hey BU ---- I AGREE with you ---- BTL is THE POISON IN THE MUD ---- it is the KEY to how this whole giant FRAUD & SCAM has been kept going ALL this time.........



It is SICK.


Edited by eric pebble

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