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Predatory lending

Printed From: IslamiCity.com
Category: General
Forum Name: General Discussion
Forum Discription: General Discussion
URL: http://www.IslamiCity.com/forum/forum_posts.asp?TID=20046
Printed Date: 02 September 2014 at 8:25am


Topic: Predatory lending
Posted By: schmikbob
Subject: Predatory lending
Date Posted: 19 April 2011 at 1:11pm
I was wondering what the Islamic position was on loans.  I thought the Quran prohibited usury but not the legal charging of interest. 
 
I started thinking about this because of today's Reuter's article that says the US Congress is considering rules that will allow a borrower to sue a lender that does not verify certain loan qualification information such as employment history.  Specifically this is legislation proposed by none other than Barney Frank, one of the precipitators of the present day home foreclosure problem.  I find in fascinating that Congress is proposing rewarding the borrower that lies to the lender.



Replies:
Posted By: abuayisha
Date Posted: 19 April 2011 at 2:40pm

There is no such thing as a perfect law. Opposing interests intersect, compromises are made, and the end result almost always never pleases everybody. Lenders violating any provision of the Dodd-Frank Act will not be criminally liable. Violating any of the new provisions are just civil offenses. The Dodd-Frank Act is nothing like the New Deal that protected depositors, borrowers, and investors between 1933 and 2000. Even with the short comings, the mortgage reform provisions within Title XIV of the Dodd-Frank Act are good first steps towards ensuring higher standards within the lending industry, promoting financial stability, and aiding in consumer protection.

by Peter Hébert

http://www.mynorthwesthomes.com/Blog/The-Mortgage-Reform-and-Anti-Predatory-Lending-Act - http://www.mynorthwesthomes.com/Blog/The-Mortgage-Reform-and-Anti-Predatory-Lending-Act

https://www.lariba.com/home-financing.htm - https://www.lariba.com/home-financing.htm     (Islamic Loans)



Posted By: Sign*Reader
Date Posted: 19 April 2011 at 11:20pm
Have you seen the "Inside Job" staring Barney yet?
It is worth the time!


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Kismet Domino: Faith/Courage/Liberty/Abundance/Selfishness/Immorality/Apathy/Bondage or extinction.


Posted By: Sign*Reader
Date Posted: 19 April 2011 at 11:47pm
The usury is an obsolete term for interest! They call it interest and than it becomes usurous in some state laws when people don't pay on time!
 The test of a true Islamic state would be the absence of interest; promotion of education, business enterprise and employment of the all able bodied...

There are dire warnings about the interest based societies who borrow and spend to their destruction and misery!






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Kismet Domino: Faith/Courage/Liberty/Abundance/Selfishness/Immorality/Apathy/Bondage or extinction.


Posted By: IssaEl999
Date Posted: 21 April 2011 at 9:48am
  • http://www.thegrio.com/politics/rep-barbara-lee-put-the-breaks-on-home-foreclosures.php">Rep.%20Barbara%20Lee:%20Put%20the%20brakes%20on%20home%20foreclosures

    http://www.thegrio.com/politics/rep-barbara-lee-put-the-breaks-on-home-foreclosures.php - Rep. Barbara Lee: Put the brakes on home foreclosures

    By http://www.thegrio.com/author/rep-barbara-lee/ - Rep. Barbara Lee

    8:54 AM on 10/19/2010

    OPINION - It's time for a national foreclosure moratorium -- It's the right thing to do...

    http://www.thegrio.com/politics/rep-barbara-lee-put-the-breaks-on-home-foreclosures.php - > read more


  • -------------
    El's Holy Qur'aan , States In Chapter 17 ; 81 , '' And Say ; Truth Has ( Now ) Arrived , And Falsehood Perished ; For Falsehood Is ( By Its Nature ) Bound To Perish (81 ) .


    Posted By: Sign*Reader
    Date Posted: 21 April 2011 at 1:01pm
    What else is new?
    There is no more free lunches, you want desserts too...Tongue
    What is so special about the moochers who want free houses?
    They are the ones who main agents of the current mess who helped the banksters; it takes two to tangoWink


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    Kismet Domino: Faith/Courage/Liberty/Abundance/Selfishness/Immorality/Apathy/Bondage or extinction.


    Posted By: schmikbob
    Date Posted: 21 April 2011 at 9:19pm
    Brilliant idea, a foreclosure moretorium.  All those people that are owed the house they are in won't have to make payments at all now.  Someone tell me why a bank would wish to participate in this market given the idiocy that passes for legislation in Washington these days.


    Posted By: Douggg
    Date Posted: 22 April 2011 at 9:30pm
    Originally posted by Sign*Reader

    What else is new?
    There is no more free lunches, you want desserts too...Tongue
    What is so special about the moochers who want free houses?
    They are the ones who main agents of the current mess who helped the banksters; it takes two to tangoWink

    It is a complicated issue.   The banks made loans they shouldn't have made.  Many people were buying homes with the idea that they would profit big time in a few years, by flipping in a resale, and moving up.   The banks created phoney mortage backed securities CDO's.     Real estate became a speculative game that collapsed in on itself.


    Posted By: IssaEl999
    Date Posted: 23 April 2011 at 4:00pm
    How%20a%20foreclosure%20freeze%20could%20heat%20up%20our%20economy
     

    http://www.thegrio.com/money/how-a-foreclosure-freeze-could-heat-up-our-economy.php - How a foreclosure freeze could heat up our economy

    By http://www.thegrio.com/author/dr-wilmer-j-leon-iii/ - Dr. Wilmer J. Leon III

     

    OPINION - In an economy that is still in recession, a rebounding housing market would go a long way towards providing much needed economic stimulus and stability...

    http://www.thegrio.com/money/how-a-foreclosure-freeze-could-heat-up-our-economy.php - > read more


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    El's Holy Qur'aan , States In Chapter 17 ; 81 , '' And Say ; Truth Has ( Now ) Arrived , And Falsehood Perished ; For Falsehood Is ( By Its Nature ) Bound To Perish (81 ) .


    Posted By: Matt Browne
    Date Posted: 12 May 2011 at 5:16am
    Predatory lending is unethical in most world views.

    We should expose the guilty.



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    A religion that's intolerant of other religions can't be the world's best religion --Abdel Samad
    Great minds discuss ideas. Average minds discuss events. Small minds discuss people--Eleanor Roosevelt


    Posted By: nothing
    Date Posted: 25 March 2013 at 3:38pm
    Originally posted by schmikbob

    I was wondering what the Islamic position was on loans.  I thought the Quran prohibited usury but not the legal charging of interest.


    The interest mentioned in the Qur'an is the INSANE type of lending method, the unregulated. You only can understand this once you see it in action. In some case it is 100% interest. Today the so called Islamic Bank does not charge interest but fees and/or shared profit. The lenders are businesses that making money with their money, just like everybody else.



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