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Rich folks are biggest mortgage defaulters

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THIS STUFF doesn’t jibe with the popular Republican theory that Barney Frank, Fannie Mae and black people are to blame for everything.

An excerpt:

No need for tears, but the well-off are losing their master suites and saying goodbye to their wine cellars.

The housing bust that began among the working class in remote subdivisions and quickly progressed to the suburban middle class is striking the upper class in privileged enclaves…

Whether it is their residence, a second home or a house bought as an investment, the rich have stopped paying the mortgage at a rate that greatly exceeds the rest of the population.

More than one in seven homeowners with loans in excess of a million dollars are seriously delinquent…

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11 Comments

  1. miltonwaddams

    From what I have read, many of the foreclosures in the hardest hit areas (like Arizona, Florida and Las Vegas) were homes that were bought by real estate speculators. Not surprising that they’d be walking away from seriously underwater investments.

  2. expdoc

    I didn’t see the statistics in the article that said the people defaulting on these loans are white and have high incomes. Maybe Pat could show us that? I bet the rapper Chamillionare doesn’t qualify as white, but leave it to Pat to inject race in a classic liberal tactic.

    All this data says is that mortgage lenders gave bad loans to people for expensive homes. That doesn’t mean they were rich it means the owner was stupid and greedy and the lender was stupid and greedy.

    What is really stupid is the federal government forcing those of us that were smart and thrifty to pay for any of the greedy people’s mistakes.

  3. joeapple1

    Why would the rich defaulting on their loans absolve Frank and Dodd of their culpability any more than the poor defaulting? They both took advantage of the inane lax lending that those two turned a blind eye to. Both rich and poor also got the loans due to the ponzi schem of CDS by the banks which Dodd was in charge of oversight!

    Yet they both serve in good standing in their positions!

  4. miltonwaddams

    Fanny and Freddy didn’t buy mortgages over $400k. That may have been Pat’s point.

  5. Robert Pace

    joeapple1,

    Just curious. Are there any republican senators or reps by name that you can name that you also hold responsible for their culpability in this bad loan mess that severly crippled our economy?

    Plus, considering the bulk of these bad loans were sold from 2002 through 2008, how long was Dodd in charge of the oversight committee that you claim he turned a blind eye to. The senate didn’t become democratic party controlled until January 2009. Is there some others you are leaving out? In the interest of fairness and honesty, don’t you think they should be included in your rants? Why is everything the democratic party’s fault?

    Pllease explain how the minority party had such influence especially during a time when Senator Frist threatened the “nuclear” option whenever the senate as a whole didn’t vote the way he wanted it to..not to mention but I will, doesnt the party in the majoirty position and the associated committee leaders from that party have the last say in what is included in legislation and what goes to the floor for vote?.Weren’t the senate republicans in control from 2002-2008 when the bulk of these bad loans were made? (Frist had more balls than Reid, that I will give to his credit, even though I didn’t agree with him most of the time).

  6. expdoc

    Since you’ve taken a little race-baiting shot at Republicans today and your liberal friends here love to accuse the right wing of being thugs I thought you might want to comment on this:

    http://www.reuters.com/article/idUSTRE66763A20100709

    California (Reuters) – A white former transit police officer was found guilty of involuntary manslaughter in a videotaped shooting death of an unarmed black man last year in Oakland, California, sparking a wave of looting and destruction in the city on Thursday.

    The verdict prompted a peaceful protest by up to 1,000 people in downtown Oakland, which gave way after nightfall to some people looting stores, smashing car windows, throwing powerful fireworks at police and lighting fires in trash cans.

    The police, numbering in the hundreds, made more than 50 arrests, but Oakland police expected that figure could double.

    “This city is not the wild, wild West,” Oakland Police Chief Anthony Batts told a televised news conference. “This city will not tolerate this activity.”

    A Los Angeles jury deliberated for about six hours over two days before reaching their decision about the shooting on a train platform in Oakland, indicating they deemed it a tragic accident rather than the intentional act of a rogue cop.

  7. miltonwaddams

    Robert Pace: It was actually January of 2007.

  8. joeapple1

    Milton. Fannie and Freddie did buy Jumbo mortgages and that is part of the problem.

    Robert, If you can show me video of Republicans pounding the table in hearings on how fannie and freddie are financially fine and do not need any more regulation like I have seen of Frank. I will say they need to go too.

  9. Robert Pace

    joeapple1, Im not defending Barney Frank or Dodd….. I just never people who are deeply aligned with the republican party ever say anything bad about people on your own side… is that a carry over from Reagan… theyre not angels… neither party errors on the side of fiscal responsiblity… and I never ever see a conservative/republican ever bitch about that.. .never…. why not? is being in your mind just a little bit better than the other side enough to look the other way… Ive been very equal opportunity in my disgusts of both parties… why cant those on the right be as damning of those in their own party as they are of those in democratic party… and as Ive stated many times, Im not a dem or repub.. Im somewhere in the middle like most thoughtful people.

  10. miltonwaddams

    My statement comes from a table on Fannie’s website, which lists the maximum loan up through 2007 as $417k. In 2008 the limit was increased significantly to deal with rising foreclosures. Not sure about Freddie Mac, perhaps their limits were higher.

    http://www.fanniemae.com/aboutfm/pdf/historicalloanlimits.pdf

  11. joeapple1

    The only people dumber than Michael Moore are the people that pay him their hard earned money believing his rants against capitalism and business. You know the same things he used to become a millionaire.

    Michael Moore fans are more gullible than donaters to TV evangelists.

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