Check out these home mortgage loans images:
The increase in home mortgages
Image by eric731
In the picture above, we see how banks were allowed to change the way they do business.
Before, they had to accumulate money from the community to loan as a mortgage.
Now they are allowed to accumulate money from the community and loan out many mortgages off the same amount of money.
In the old system, the FDIC had to be created to protect the community from losing all their money if a borrower defaulted.
Now, the FDIC only needs to cover a portion of the depositors money because if one person defaults it only affects a portion of the money, not the whole thing.
That is why a bank allows defaulters to modify their loan. The bank knows the modified amount is only modifying the fictitious, created money, not the actual community's money. Yes, the banks lose some future money, but they did not lose actual money, since there was only a portion of the community's money that was actually invested in their house.
What do you think?
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Image by North Carolina National Guard
RALEIGH, N.C. -- Wells Fargo Home Mortgage Corporation employees provided some much needed holiday cheer for military families in need by donating 156 family meals at their corporate offices here today. The company, NCNG and Army Reserve volunteers braved a chilly morning to load many of the boxes full non-perishable food for a Thanksgiving feast onto North Carolina National Guard Light Medium Tactical Vehicle for distribution. “It is a great opportunity for the team,” said Vince Toscano, a Wells Fargo consumer loan underwriter. (U.S. Army Photo by Sgt. 1st Class Robert Jordan, North Carolina National Guard Public Affairs)
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Image by North Carolina National Guard
RALEIGH, N.C. -- Wells Fargo Home Mortgage Corporation employees provided some much needed holiday cheer for military families in need by donating 156 family meals at their corporate offices here today. The company, NCNG and Army Reserve volunteers braved a chilly morning to load many of the boxes full non-perishable food for a Thanksgiving feast onto North Carolina National Guard Light Medium Tactical Vehicle for distribution. “It is a great opportunity for the team,” said Vince Toscano, a Wells Fargo consumer loan underwriter. (U.S. Army Photo by Sgt. 1st Class Robert Jordan, North Carolina National Guard Public Affairs)
