When Did the Banks Become the Crooks!?
So here we are on the cusp of an important year in American if not Global history. We are about to inaugurate our new president who not only has a message of hope for the entire American people but for the world: An end to the previous 8 years of neo-conservative policies of imperialistic politics (my words, not Obama's).
2008 has been a very trying year for us all - many people (some of my friends) lost their jobs with no real good prospects of reentering the work force. Many companies that have been around for years are failing and closing their doors - Mervyns, Circuit City, KB-Toys, and others. Banks have failed us all and don't get me started on the ailing mortgage crisis afflicting many people.
Today in the SFGATE.COM, I ran across an article about how even people with great credit and history cannot re-finance their homes because NOW the banks are being picky about whom they are extending new or re-issuing loans to. Here is a link to the article. Now the disturbing part of all this is that the banks, in their infinite greed and wisdom, having been bailed out by our government (with us - the taxpayers - footing the bill) have decided to be super stringent in their practices. This is a good thing, sort of. But this should have been the practice years ago.
When Cynthia and I procured our first home in 1998, we jumped through hoops to qualify and still had to purchase PMI to cover the fact we didn't have the necessary down payment or any equity. When did it become practice to start issuing risky loans to people? When did the banks relax their practices and why? Has anyone answered these questions yet?
There is no magic pill to cure all - but the banks reaped their rewards over the past 6-7 years and now we are paying for their bad choices. BULLSHIT! I am not saying the government should let these institutions fail, but someone should be more accountable to the people - the taxpayers.
To make a long story short - many people who are good loan candidates, cannot re-finance because the banks are picking NOW to be picky. But like most things in life, we are powerless to alter the practices of big business. Sucks to be a consumer today!
My blog, my two cents.