foreclosures and the banking industry
Posted 37 weeks 3 days ago byIt's about time to change the banking laws.Interest rates served only the banking community. If folks were free of interest, at least on long term debt of 7 + years, they would have more cash to buy more goods and thus the economy would once again start to steam roll.
There should be only a one time usury fee for home loans generated by the (so-called) Fed. This fee should not exceed more than 3% of the loan value. So borrowing $100K there would be a simple interest charge of $3,000.00. This could be figured into the life of the loan or paid up front.
This would assist the homeowners equity and bring back pride in ownership.
The Banking laws need to be rewritten for the good of our economy and that's my 2cents.
Thoughts
foreclosures and the banking industry
Submitted on March 3rd, 2008 by 2centsThe return on investment here might be so low.
I am not addressing profits - the banks have been having their way w/ us for too long.
The Fed should finance the housing industry, with a one time usury fee.
No investors need apply.
Interesting idea.
Submitted on March 3rd, 2008 by AnonymousAny place where this is being used?
The return on investment here might be so low, compared to the risk, that many investors would probably stop lending money.
For example, if I asked you to loan me $100, and I will pay you back over 30 years, your equation would equal a 30 cent profit for you. All that for 30 years of dealing with putting check into the bank and making sure I pay. Also, what if I bail with your $100? Your profit was so low that one default could wipe out your ability to offer more loans.
So while it is an interesting concept, maybe it needs to be refined a bit more.
How about a fee for each year of the loan? So if you wanted a 30-year note you would have to pay that 3% x 30 years up front? So for a $100 loan, you would have to pay $9 in interest over 30 years. This is better, but might actually be more expensive than the current method because your balance declines over time.