Kathleen – first can you point me in the direction of your statement where 75-100% of persons in a neighborhood take out equity to fund small business? I am a mortgage broker and as far as my business model has been in the past most persons who took out equity back before the financial crisis used it for: remodeling, purchase of vehicle, pay down credit card debt, or to settle a divorce situation. Not one of the refi’s that I did in that period had to do with investing in a small business. Those that took advantage of the escalated values for purposes of a reverse mortgage did not suffer any reduction. Second, there is no such thing as an investor on the internet or any type of ad that will produce a loan that does not require collateral such as property. Besides, what is the sole purpose of owning a home in the first place if it’s not to build an equity position for the later years or when you want to sell and move either up or down size? Parents often use equity to pay for their children’s college education or to even help them with a ‘gift’ on a children’s first home. The 2008 cycle, despite what you may think, was not caused by the inflation of values in properties nor the amount of equity loans in a given neighborhood. Your so-called nestegg is built from sales and purchases in and around your neighborhood so in reality it was OTHERS who helped you build that equity. You should be grateful for those that do get mortgages otherwise you would not have any activity in your neighborhood except for cash sales of investors to turn it into a REIT.

Greed is a widely used word these days but it doesn’t always pertain to the bad guys!

If you are among those who put 20-25% down on a coastal property and went Underwater, even though you weren’t behind on a single mortgage payment, have a high-paying job and excellent credit, you’re wishing you left the funds in your 401-K and rented. And you NEVER want to hear the words “subprime mortgage” again. The same is true of senior citizens who sold a house, then bought a smaller house outright, were up to date on all their bills, and went Underwater because of subprime loans in their neighborhoods. They have no equity left to pay for Assisted Living, and little to no time left to earn more retirement money, even if they’re in good health..

Houses are not ATMS. The British have a saying, “safe as houses.” Let’s make American houses safe again.

If someone needs a loan, they can find investors on the Internet or take out an ad in the local paper. No need to endanger their neighbors’ nesteggs .