Thread: It Really Is Clinton III
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BAR[_3_] BAR[_3_] is offline
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First recorded activity by BoatBanter: Oct 2008
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Default It Really Is Clinton III
wrote:
On Fri, 09 Jan 2009 22:18:18 -0500, BAR wrote:


Racist and illegal? It was based upon risk analysis. Why would I want to
lend money to people who were most likely not going to pay it back. And,
if I did have to foreclose just before getting the sheriff to evict them
they would trash the place. Where is my motivation to lend money in
those areas?

Yup, racist and illegal. When I find the link I'll post it, but those
"redlined" areas have reasonably low default rates. Where most of the
problems have arisen, is the more affluent borrower who over extended
thinking of their home as an investment, not as a home.

Seek and seek well.

Let me ask you another question. What is the cost of making a $40K loan?
What is the cost of making a $200K loan? What is the profit on a $40K
loan? What is the profit on a $200K loan? Which loan would you rather
put your efforts into?


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