Thread: Mortgage fraud.
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Old 08-26-2008, 09:44 PM
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Quote:
Originally Posted by Wagner
Didn't say anything about guaranteeing appreciation. And I'm not removing the blame from a person that does a high risk ARM, neg-am or interest only.
Still trying to understand your plan here. We will leave aside the illegal activity, as you suggest above. Now the homeowner will get a home, and if it goes up in value, he wins. If it goes down, the bank will guarantee it. Is that a fair summary?

If so, the nearest analogy that I can come up with is vehicle leasing. However, in leasing, the homeowner doesn't get title, just the right to use the asset (with a potential buyout clause). That just seems a lot closer to renting a home rather than owning a home.

If the banks offered this financing for purchases, they would spread the risk over all of their customers, who would pay collectively for this service. Sounds a little bit like socialism. What are we missing here?
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