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crown

The Yanks Kill Off Liar Loans

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http://news.bbc.co.uk/1/hi/business/7506053.stm

http://thecrownblogspot.blogspot.com/2008/...n-of-times.html

The plan would bar lenders from making loans without proof of a borrower's income,

In addition it would prohibit lenders from making a loan without considering a borrower's ability to repay a home loan from sources other than the home's value.

Now how many years until the FSA get on board?

Edited by crown

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http://news.bbc.co.uk/1/hi/business/7506053.stm

The plan would bar lenders from making loans without proof of a borrower's income,

In addition it would prohibit lenders from making a loan without considering a borrower's ability to repay a home loan from sources other than the home's value.

Now how many years until the FSA get on board?

If they dont, expecty to see US Banks here in force.

except, there are no sub-prime mortgages in the UK.

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http://news.bbc.co.uk/1/hi/business/7506053.stm

The plan would bar lenders from making loans without proof of a borrower's income,

In addition it would prohibit lenders from making a loan without considering a borrower's ability to repay a home loan from sources other than the home's value.

Now how many years until the FSA get on board?

Staggering that they actually have to write down those rules for lenders.

Edit: poor grammer.

Edited by Khayl

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If they dont, expecty to see US Banks here in force.

except, there are no sub-prime mortgages in the UK.

I think you'll find that there are no sub prime mortgages in the UK... anymore... they all disappeared just before Christmas last year. Or self cert for that matter, no-one can arrange a self cert loan these days without verifying the customer can afford the loan through an accountants letter, bank statements or tax receipts. Also, I doubt that anyone could afford the rates anyway. The only brokers offering self cert are your dodgy directly authorised types and they are being banned on a daily basis so there won't be many around soon. Current "best buys" for self cert are 7% plus with a 25% deposit mortgage. 8% for 85% loans. They are gone.

Edited by bobby9983

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If they dont, expecty to see US Banks here in force.

except, there are no sub-prime mortgages in the UK.

All my friends bought their property by taking out sub-prime mortgages. They all lied and exaggerated their income. All of them did this.

Edited by tentcity

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It really does come to something when a lender has to be told by a regulator to check incomes and make sure the loan can be repaid.

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It really does come to something when a lender has to be told by a regulator to check incomes and make sure the loan can be repaid.

But in the old world (before Summer 07), the lenders thought that by securitising they had no risk, so why bother with underwriting.

The problem now of course is that all mortgage backed bonds have redemption dates and the bank usually will have undertaken to have them back and this is one of the reasons why even well captialised banks don't want to give any money away now.

UK sub prime assets are currently being traded at 50p in the £.

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Hang on a minute. Just stop and think about this - yes really think about it.

When in history did bankers to lend to people without asking their ability to pay back the loan or indeed check they had any income or were actually telling the truth?

The answer is NEVER in the history of banking has this ever happened before. The fact that the US has had to outlaw these self cert loans indicates just how far form normal banking practice we have departed.

Truely staggering!

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UK sub prime assets are currently being traded at 50p in the £.

As much as that? !!

Do you think that is too high bobby?

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?

Poor 'grammer' :rolleyes:

Methinks that Eric might be about to go international...the world will never be the same I tellya.

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When in history did bankers to lend to people without asking their ability to pay back the loan or indeed check they had any income or were actually telling the truth?

The answer is NEVER in the history of banking has this ever happened before. The fact that the US has had to outlaw these self cert loans indicates just how far form normal banking practice we have departed.

Hmmm .... when people bought stock on margin before the 1929 crash, I doubt the brokers did any income checks. If they had, the margin calls wouldn't have been so devastating. It didn't matter -- everyone knew that the stock was going to rise.

To me, this seems very similar to mortgage lenders' recent assumptions and approach.

(edit: it may have been brokers rather than bankers doing the lending, but it seems functionally equivalent).

Edited by huw

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  • 395 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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