Texas avoided subprime loan problems by regulating mortgage brokers

deviliscious

Pshh and they think Texas is a bunch of rednecks lol! At least our state was intelligent enough to regulate this when the feds would not.

" Texas, where failed thrifts in the Dallas and Houston areas had assets of more than $45 billion in the 1980s and 1990s, has largely sidestepped the subprime crisis by learning a lesson from the S&L scandal and ratcheting up regulation.

``We had no regulation of mortgage brokers before 1990 and now we have some of the most robust requirements in the country,'' said Doug Foster, commissioner of the Texas Department of Savings and Mortgage Lending in Austin.

Criminal Background

Texas is one of 32 states that require criminal background checks for mortgage brokers and one of 12 states that administer tests that prospective brokers must pass, Foster said. The state has a 42 percent failure rate on that test, he said. Texas also requires 90 hours of training for new brokers and 15 hours of continuing education every two years. Only Wisconsin mandates more, he said. "

Lets see how Pelosi's state compared to Texas:

"California, by contrast, was hit hard by both financial meltdowns. Failed thrifts based in the regions of Santa Barbara, Ventura, Los Angeles, Orange County, San Diego and Stockton had combined assets of more than $95 billion in the 1980s and 1990s.

Failed Thrifts

Now, the state is home to all five of the top metropolitan areas for foreclosures, according to RealtyTrac Inc., a real estate database in Irvine, California.

California, Arizona and Florida rank second, third and fourth by percentage of households in the foreclosure process, behind Nevada, RealtyTrac said.

Borrowers with subprime mortgages fell behind on their monthly payments at a rate more than four times that of prime borrowers, according to the Washington-based Mortgage Bankers Association. Subprime home loans went to people with bad or incomplete credit histories."

 

If we do not learn from history it is doomed to repeat itself.

 

www.bloomberg.com/apps/news

Ekibiogami

Originally posted by deviliscious



``We had no regulation of mortgage brokers before 1990 and now we have some of the most robust requirements in the country,'' said Doug Foster, commissioner of the Texas Department of Savings and Mortgage Lending in Austin.
Criminal Background
Texas is one of 32 states that require criminal background checks for mortgage brokers and one of 12 states that administer tests that prospective brokers must pass, Foster said. The state has a 42 percent failure rate on that test, he said. Texas also requires 90 hours of training for new brokers and 15 hours of continuing education every two years. Only Wisconsin mandates more, he said. "
Lets see how Pelosi's state compared to Texas:
 
"California, by contrast, was hit hard by both financial meltdowns. Failed thrifts based in the regions of Santa Barbara, Ventura, Los Angeles, Orange County, San Diego and Stockton had combined assets of more than $95 billion in the 1980s and 1990s.
 

Failed Thrifts
Now, the state is home to all five of the top metropolitan areas for foreclosures, according to RealtyTrac Inc., a real estate database in Irvine, California.
California, Arizona and Florida rank second, third and fourth by percentage of households in the foreclosure process, behind Nevada, RealtyTrac said.
Borrowers with subprime mortgages fell behind on their monthly payments at a rate more than four times that of prime borrowers, according to the Washington-based Mortgage Bankers Association. Subprime home loans went to people with bad or incomplete credit histories."
 
If we do not learn from history it is doomed to repeat itself.

 
www.bloomberg.com/apps/news
 

Pshh and they think Texas is a bunch of rednecks lol! At least our state was intelligent enough to regulate this when the feds would not.
" Texas, where failed thrifts in the Dallas and Houston areas had assets of more than $45 billion in the 1980s and 1990s, has largely sidestepped the subprime crisis by learning a lesson from the S&L scandal and ratcheting up regulation.

Its all Bushes Fault! We coulda been Number one.. Wait...

 

 Deviliscious.

Dracus

Tell me about California... no wait, I live there or here...  whatever.

Yeah, a 7 billion bail-out for California...  I could go on and on with some of the problems and possible reasons.  For example people receiving free schooling and medical care while not paying taxes.

SioBabble

I'm glad to see that Texas learned something from the S&L meltdown of the 80's.

Note that they didn't relax those evil regulations, unlike what happened at the federal level in '99, when key provisions of Glass-Stegall were abolished at the behest of Phil Gramm.

Which led DIRECTLY to the current crisis at the national level.

Williboss

LeoOtrue said:

The real causes of the housing and financial crisis were predatory private mortgage lending and unregulated markets. The mortgage market changed significantly during the early 2000s with the growth of subprime mortgage credit, a significant amount of which found its way into excessively risky and predatory products.

Yeap, you're right