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  • Seattle Pushing For Sharia Mortgages

    WASHINGTON – A proposal in Seattle meant to increase homeownership among Muslims by offering financing compliant with strict Islamic law -- known as Sharia -- is gaining ground in the latest test for local leaders trying to accommodate diverse religious beliefs.
    "We will work to develop new tools for Muslims who are prevented from using conventional mortgage products due to their religious beliefs," Seattle Mayor Ed Murray said during a press conference July 13.
    "Sharia," which comes from the Koran and means "the right path," prohibits the payment of interest -- the primary way lenders earn. Many of Seattle's 30,000 practicing Muslims, therefore, are hard-pressed to find Sharia-compliant financing options when buying homes, making large purchases or starting a business.
    A Seattle housing committee suggested community and business leaders find a way to help them, a push the mayor endorsed. Seattle is just the latest to explore financing options for devout Muslims -- following in the footsteps of Chicago as well as national financial firms and lenders like Bank of America. But the move to offer Sharia-compliant financial products has drawn fire. Critics have warned that it opens the nation's financial system to Islamic radicals and terror groups, providing a mechanism for money laundering.
    In 2008, conservative lawmakers in Congress went after American International Group for offering Sharia-compliant insurance programs.
    Rep. Frank Wolf, R-Va., and then-Rep. Sue Myrick, R-N.C., sent AIG then-Chairman Edward Liddy a strongly worded letter that argued Sharia financing could be manipulated and used by terrorist organizations like Al Qaeda and Hamas to launder money.
    "You may defend your decision to offer Sharia products and will probably state that they have no real ties to Sharia law, and therefore pose no threat. You are wrong," the lawmakers wrote in the Dec. 18, 2008 letter. "Like Britain, the way to America's legal code is through its wallet, and if Sharia law gains a strong footing in the United States, it will be through Sharia finance and Sharia products."
    WASHINGTON – A proposal in Seattle meant to increase homeownership among Muslims by offering financing compliant with strict Islamic law -- known as Sharia -- is gaining ground in the latest test for local leaders trying to accommodate diverse religious beliefs.
    "We will work to develop new tools for Muslims who are prevented from using conventional mortgage products due to their religious beliefs," Seattle Mayor Ed Murray said during a press conference July 13.
    "Sharia," which comes from the Koran and means "the right path," prohibits the payment of interest -- the primary way lenders earn. Many of Seattle's 30,000 practicing Muslims, therefore, are hard-pressed to find Sharia-compliant financing options when buying homes, making large purchases or starting a business.
    A Seattle housing committee suggested community and business leaders find a way to help them, a push the mayor endorsed. Seattle is just the latest to explore financing options for devout Muslims -- following in the footsteps of Chicago as well as national financial firms and lenders like Bank of America. But the move to offer Sharia-compliant financial products has drawn fire. Critics have warned that it opens the nation's financial system to Islamic radicals and terror groups, providing a mechanism for money laundering.
    In 2008, conservative lawmakers in Congress went after American International Group for offering Sharia-compliant insurance programs.
    Rep. Frank Wolf, R-Va., and then-Rep. Sue Myrick, R-N.C., sent AIG then-Chairman Edward Liddy a strongly worded letter that argued Sharia financing could be manipulated and used by terrorist organizations like Al Qaeda and Hamas to launder money.
    "You may defend your decision to offer Sharia products and will probably state that they have no real ties to Sharia law, and therefore pose no threat. You are wrong," the lawmakers wrote in the Dec. 18, 2008 letter. "Like Britain, the way to America's legal code is through its wallet, and if Sharia law gains a strong footing in the United States, it will be through Sharia finance and Sharia products."

  • #2
    They are here or there in the US. You need money or anything else then follow the rules that all the rest follow. If not then get a loan from the Saudis. I'm sure they have a couple grand to loan without interest.
    "Ask not what your country can do for you"

    Left wing, Right Wing same bird that they are killing.

    you’re entitled to your own opinion but not your own facts.

    Comment


    • #3
      Although I fail to see the need for local government to provide a mechanism for followers of a particular religious group to obtain loans, the statement
      Critics have warned that it opens the nation's financial system to Islamic radicals and terror groups
      is a slippery slope so slippery it doesn't even need a slope...

      Comment


      • #4
        Well, I guess Muslims will have to pay a hefty "service fee" instead that equals the interest on the mortgage...

        Comment


        • #5
          since this is Fox i cant trust it. Come back when a real news source covers it.
          you think you a real "bleep" solders you "bleep" plastic solders don't wory i will make you in to real "bleep" solders!! "bleep" plastic solders

          CPO Mzinyati

          Comment


          • #6
            Originally posted by Skoblin View Post
            Although I fail to see the need for local government to provide a mechanism for followers of a particular religious group to obtain loans, the statement is a slippery slope so slippery it doesn't even need a slope...
            Did you miss the part about using the sharia mortgage system to launder money? Makes perfect sense when you remember what Vegas was used for, and all the other ways the mobs used to laundered their money. Or the ways in which drug cartels launder money now.

            A bigger concern is who makes up the profit difference if a conventional mortgage company does this? Obviously, if they offer a no interest mortgage to Muslims, they will be sued aggressively to offer the same thing to every one else, on the grounds of discrimination if nothing else, while conventional mortgage holders will end up paying more for theirs.

            This is a very bad idea for many reasons. Want to live in America and enjoy the American dream? Pay for it like everyone else does.

            Comment


            • #7
              Originally posted by Mountain Man View Post
              Did you miss the part about using the sharia mortgage system to launder money?
              No, I read that. Regardless of the fact that I consider this a bad idea since the government should not be initiating a financial scheme for the benefit of a particular religious group, there is no reason why such a scheme would not fall under existing rules regarding transparency in financial reporting. In fact, it would be less likely that such a vehicle would be used for criminal or terrorist purposes for the simple fact that it would be under likely greater scrutiny by homeland security and other police/security agencies. If terrorists and criminals wish to launder or transfer funds they already have a host of well established and more innocuous vehicles for doing so.

              Comment


              • #8
                If they they don't have to pay interest, I don't have to pay interest. Sounds great.....
                ALL LIVES SPLATTER!

                BLACK JEEPS MATTER!

                BLACK MOTORCYCLES MATTER!

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                • #9
                  Yeah, I wouldn't be too happy to learn that I have to pay interest for 30 years to buy my house while someone else doesn't because of their religion. Sounds like discrimination to me, and I know banks wouldn't loan money for no profit, or actually a loss since the value of the dollar 20 -30 years after the loan is closed will certainly be less. The banks won't take a loss so they'd find other ways to make up this money, meaning charge others more.

                  Comment


                  • #10
                    Originally posted by Steve573 View Post
                    Yeah, I wouldn't be too happy to learn that I have to pay interest for 30 years to buy my house while someone else doesn't because of their religion. Sounds like discrimination to me, and I know banks wouldn't loan money for no profit, or actually a loss since the value of the dollar 20 -30 years after the loan is closed will certainly be less. The banks won't take a loss so they'd find other ways to make up this money, meaning charge others more.
                    Why do people suddenly OD on stupid pills whenever they see the word 'sharia'? You do understand that there is more than one way for a bank to make money off a loan than interest? Please tell me that you do.

                    Here is one way:

                    In order to get around the challenge, the MCCA has followed the lead of other lenders abroad by offering Islamic finance - essentially a process that avoids charging interest by entering into a partnership with each homebuyer and sharing purchase risk. Instead of making interest payments, buyers pay rent to the MCCA until they are granted full ownership of the property.

                    Murabaha is defined as a transaction where the seller (in this case MCCA) discloses the cost of its commodity, then adds some profit, which is either a lump sum or based on a percentage. This payment must be a fixed amount.
                    In another option, Ijarah Muntahia Bittamleek, the payments can be either fixed or variable, and ownership of the property is transferred to the client with the last instalment. There are another three MCCA products, and other lenders, such as Iskan Home Finance, have other offers, and all aim to be Sharia compliant.
                    In his particular case, Tabiaat will pay rent for 180 weeks, which ultimately equates to $288,000, plus the $54,000 deposit.
                    http://www.yourmortgage.com.au/artic...lia-79341.aspx

                    More detail.

                    The home he wants to buy is $310,000, so with his $60,000 deposit he needs help in paying $250,000 before the house can be transferred to him. At the lowest variable rental rate offered by his financial institution of 5.2% he will have to pay an additional $197,225 on top of the $310,000 principal. This is over the course of 25 years. Aaban has entered into a lease agreement and his rent payments are made through direct debit from his nominated bank account.
                    Listed under 'Cons'

                    Could be more expensive. The special circumstances surrounding an Islamic home loan can make lenders charge more than for a typical home loan.
                    http://www.finder.com.au/islamic-home-loans

                    So, little ole you isn't going to get lumped paying more money. In fact, the person taking out the loan may take a bigger hit for the sake of their faith (this is the point where you jump up & down & say 'prove it', or something else silly). If that isn't good enough for you I'm sure there are a long list of politicians and other similarly motivated people who will tell you just which institutions offer these loans so you can avoid them.

                    So, take a deep breath & move on to the next issue to get all excited about. These loans have been around for ages. The world will continue to turn.
                    Human beings are the only creatures on Earth that claim a god and the only living thing that behaves like it hasn't got one - Hunter S. Thompson

                    Comment


                    • #11
                      Originally posted by T. A. Gardner View Post
                      Well, I guess Muslims will have to pay a hefty "service fee" instead that equals the interest on the mortgage...
                      It is not really a service fee but interest worded differently. In Sharia mortgages...the interest is calculated so that the final purchase price after all monthly payments are made is the agreed upon purchase price...whereas in a normal mortgage we concentrate on the initial purchase price.
                      Flag: USA / Location: West Coast

                      Prayers.

                      BoRG

                      http://img204.imageshack.us/img204/8757/snap1ws8.jpg

                      https://www.youtube.com/watch?v=5PtsX_Z3CMU

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                      • #12
                        Originally posted by Salinator View Post
                        It is not really a service fee but interest worded differently. In Sharia mortgages...the interest is calculated so that the final purchase price after all monthly payments are made is the agreed upon purchase price...whereas in a normal mortgage we concentrate on the initial purchase price.
                        The other difference is that all sharia mortgages oblige you to contribute 1% to the terrorist group of your choice & behead a neighbour. Little known fact.
                        Human beings are the only creatures on Earth that claim a god and the only living thing that behaves like it hasn't got one - Hunter S. Thompson

                        Comment


                        • #13
                          Originally posted by Salinator View Post
                          It is not really a service fee but interest worded differently. In Sharia mortgages...the interest is calculated so that the final purchase price after all monthly payments are made is the agreed upon purchase price...whereas in a normal mortgage we concentrate on the initial purchase price.
                          It amounts to the same thing. This is just paying lip service to a stupid set of religious restrictions that should never be codified into law in the US.

                          Comment


                          • #14
                            Originally posted by BF69 View Post
                            The other difference is that all sharia mortgages oblige you to contribute 1% to the terrorist group of your choice & behead a neighbour. Little known fact.
                            Plus, a missed payment requires the amputation of the hand of your choice.

                            Comment


                            • #15
                              I don't have a problem with arrangements so that Muslims who practice sharia are compliant with their faith. What I do find disturbing is how the same people who are bending over backwards to placate Muslims, are at the very same time, taking such aggressive action against Christians.

                              Comment

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