2017/09/27: Many young homeowners in booming cities owe more than they earn, and some even falsify salary details to get bigger mortgages.
“Chinese banks typically allow homebuyers to use up to half of their monthly incomes to repay mortgages,” said Julia Fan, a former state bank manager. “But the market in cities like Shenzhen and Shanghai is full of buyers whose out-of-pocket property spending is much more than their actual monthly salaries.”
Bill Duan, a manager at a Chinese investment bank, said it was not unknown for Chinese buyers to exaggerate their salaries or use fake payslips when taking out mortgages and loans, “and this may be when the problem starts”.
“It’s known among industry insiders that local branches of the banks in many cities do not always double-check salary details with employers, even though the applicants offered salary certificates for several times the city’s average wages,” he said.
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In a nearly $13 billion settlement with the US Justice Department in November 2013, JPMorganChase admitted that it, along with every other large US bank, had engaged in mortgage fraud as a routine business practice, sowing the seeds of the mortgage meltdown. JPMorgan and other megabanks have now been caught in over a dozen major
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A town in California is making headlines on how it is tackling its foreclosure crisis. In Richmond, almost half of the city's residential mortgage holders are underwater. In a major development last week, Richmond became the first city in the country to offer to purchase mortgages of distressed homeowners from Wall Street banks and other lenders. Under a plan approved by the city council in April, the city can also use its eminent domain authority to purchase loans in order modify them and allow families to avoid foreclosure and stay in their homes. "The banks sold our community predatory loans, and now they have no solution they're presenting for this crisis," says Richmond Mayor Gayle McLaughlin. "We are stepping in by taking these troubled loans off the hands of the banks, and we're paying them fair market value for these loans. And then we're working with the homeowners to refinance and modify loans in line with current home values. We call on the banks to voluntarily sell us these loans, and if they don't cooperate, we will be considering eminent domain."
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Economics for the 21st Century and Beyond
Lacrime, debiti e sfratti. Ha dell'incredibile la storia della contea di Gwinnett dove sono stati eseguiti la bellezza di 26.502 sfratti. In azione gli uomini dello sceriffo della contea Greg Chapel che hanno cominciato le operazioni in questa piccola area della Georgia. Al centro del disagio degli