I'd be interested to hear from anyone who has taken out one of these "payday" or "Title" loans. Or from anyone in the loan biz.
Here's one response, I thought was pretty interesting:
Dear Mr. Spencer;
I read your article and was so pleased to have another point of view in print. As someone who has been in the mortgage business for 22 years, it has come to the point where many mortgage brokers, including myself, and lenders have left the residential mortgage business.
Why bother to try to service the markets that our big brother government insisted we serve when we are constantly faced with freebee lawyers filing suit against us for predatory lending.
We are accused of predatory lending when an adult makes an informed decision to accept a loan program that will enable that person to acquire a home when conventional lending sources such as banks refuse to offer a mortgage due to less than perfect credit or undocumented income. It then becomes the responsibility of the homeowner to MAKE THE MONTHLY MORTGAGE PAYMENTS. When the homeowner defaults, the freebee lawyers state that the homeowner is ignorant to the loans terms and should not have to pay the higher than prevailing interest rate.
Pardon me, but what ever happened to the principle of risk and reward ? Why should an adult not be responsible for his or her actions? It seems to me that government enjoys making these people wards of the state. After all, how else will the politicians ensure where their next vote is coming from? The politicians and lawyers have injured the industry so badly that unless one qualifies for a conventional mortgage the options available become so cumbersome that real estate investment is dying a very fast death.
Let's get back to the times when only those that could afford a home were getting mortgages. Homeownership, is for those that can pay the monthly bill. The convoluted political sentiments that caused this mess need to be addressed not the industry.
There is nothing wrong with the mortgage industry, only the bleeding heart politicians that are only good at ruining everything they legislate. Perhaps they should investigate the foreclosures on VA insured homes. Historically, VA mortgages default more than any other loan. Why not protect the veteran against insured loans that are sure recipies for financial ruin.
Frank J. Melfi III
NOTE: He's not the same Frank J. who runs IMAO.