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The Tampa Tribune

Published: July 19, 2008

Borrowers' Responsibility

Regarding "Feds Adopt Plan To Protect Borrowers From Shady Lending Practices" (Nation/World, July 14):

Personally, I think it will add to the current credit tightening, making mortgages harder to get and thereby deepening the problem. Banks will not only continue to limit programs voluntarily, but now they will be prohibited from offering valuable loan programs that do have their place in responsible lending practices.

Every single borrower currently going to foreclosure is personally responsible for their decisions. The existing regulations and disclosures are clear. They chose to lie - which is fraud. And now we are telling them it wasn't their fault.

It was their fault. They choose to borrow beyond their ability to pay. Many of these now prohibited lending practices were a part of the lending portfolio for decades, without abuse. The problem began when things heated up. It wasn't just decisions inside the banking or housing industry. Speculators did whatever they could to get theirs, including knowingly committing fraud.

What happened to personal responsibility? It's tough to get people to grow up and make better decisions when we keep saying it's not their fault, they should be protected better, and then applaud as we create a more encompassing nanny state.

SARA NORMANDEAU

Oldsmar

Expand Bailout
Now that the Senate has committed $300 billion to bail out homeowners for poor or greedy buying decisions, it's seems only fair that the Senate should move on to the automobile industry and help those individuals who purchased large vehicles when gas was only $2 per gallon. They should not be forced to take lower trade-in prices or to continue driving their SUVs at $4 gas.

Come on Washington! Lets spread that money around so that no one has to responsible for their decisions.

JIM NELSON

Tampa

Wrong Thing To Do

Bailing out speculative buyers and the lenders who provided their risky loans is absolutely the wrong thing to do. Almost without exception, these buyers purchased properties beyond what they could have afforded under traditional guidelines in the expectation they would be able to flip the properties in a rising market. In effect, they were renting McMansions with the benefit of a mortgage deduction - and expected to make a profit to boot.

Now that that's not working out so well, Congress expects the rest of us who live within our means to foot the bill. Why should we? Worse, Congress wants to raise - raise! - the lending ceiling. Exactly how would that discourage future speculative excess?

I would, however, support programs and tax exemptions for first-time buyers. Their purchases would probably work off some distressed inventory and enable legitimate move-up buys by existing homeowners. Eventually, that would ripple up throughout the entire price structure.

JEFF HILL

Tampa

When Will It Stop?

The U.S. government is now promising to bail out IndyMac Bank after doing the same for Bear Stearns, the Hurricane Katrina participants (I loathe the use of victims because today everyone considers themselves a victim) and starting with the socialistic decision to pay the survivors' families of 9/11.

This has all happened under a pseudo-Republican administration. I cannot imagine what a full-fledged socialist President Obama's administration would bring if he wins. Together with a socialistic Democratic Congress, the result will be disastrous.

When will this madness stop?

The continuation of policies set forth by a weak Republican president will be the end of us all.

MARK NEWMAN

Lutz

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