Comments on: Some Thoughts on Islamic Finance and the Mortgage Crisis http://muslimmatters.org/2008/05/20/some-thoughts-on-islamic-finance-and-the-mortgage-crisis/ Discourses in the Intellectual Traditions, Political Situation, and Social Ethics of Muslim Life Thu, 09 Feb 2012 17:25:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Halal Mortgages http://muslimmatters.org/2008/05/20/some-thoughts-on-islamic-finance-and-the-mortgage-crisis/#comment-37235 Halal Mortgages Sat, 24 Jan 2009 20:55:27 +0000 http://muslimmatters.org/2008/05/20/some-thoughts-on-islamic-finance-and-the-mortgage-crisis/#comment-37235 I think the UK public are more aware of shairiah compliant financing and this itself has led to the increase in products in services. Insha Allah this will continue to grow and expand and give us muslims better value products without losing the Islamic perspective. <a href="http://www.simplyhalalmortgages.com" rel="nofollow">Halal Mortages</a> are getting more and more competative as the competition grows. I think the UK public are more aware of shairiah compliant financing and this itself has led to the increase in products in services. Insha Allah this will continue to grow and expand and give us muslims better value products without losing the Islamic perspective.

Halal Mortages are getting more and more competative as the competition grows.

]]> By: Some Thoughts on Islamic Finance and the Mortgage Crisis « RIBH, Islamic Finance News http://muslimmatters.org/2008/05/20/some-thoughts-on-islamic-finance-and-the-mortgage-crisis/#comment-20628 Some Thoughts on Islamic Finance and the Mortgage Crisis « RIBH, Islamic Finance News Sat, 31 May 2008 10:26:38 +0000 http://muslimmatters.org/2008/05/20/some-thoughts-on-islamic-finance-and-the-mortgage-crisis/#comment-20628 [...] Read the complete article: Muslimmatters.org [...] [...] Read the complete article: Muslimmatters.org [...]

]]> By: ribh http://muslimmatters.org/2008/05/20/some-thoughts-on-islamic-finance-and-the-mortgage-crisis/#comment-20615 ribh Fri, 30 May 2008 23:12:36 +0000 http://muslimmatters.org/2008/05/20/some-thoughts-on-islamic-finance-and-the-mortgage-crisis/#comment-20615 RIBH, the Islamic Finance News Portal ( http://ribh.wordpress.com ) provides daily updated information to the general public as well as to the professionals interested by the development of Sharia Compliant financial services. RIBH, the Islamic Finance News Portal ( http://ribh.wordpress.com ) provides daily updated information to the general public as well as to the professionals interested by the development of Sharia Compliant financial services.

]]> By: Pay Off Your Debt - Khutbah by Muhammad Faqih | MuslimMatters.org http://muslimmatters.org/2008/05/20/some-thoughts-on-islamic-finance-and-the-mortgage-crisis/#comment-20601 Pay Off Your Debt - Khutbah by Muhammad Faqih | MuslimMatters.org Fri, 30 May 2008 05:36:15 +0000 http://muslimmatters.org/2008/05/20/some-thoughts-on-islamic-finance-and-the-mortgage-crisis/#comment-20601 [...] also see, Thoughts on Islamic Finance and the Mortgage Crisis, [...] [...] also see, Thoughts on Islamic Finance and the Mortgage Crisis, [...]

]]> By: politics world » Israeli Soldiers (IDF) Photograph Dead as Trophies - Oznik http://muslimmatters.org/2008/05/20/some-thoughts-on-islamic-finance-and-the-mortgage-crisis/#comment-20394 politics world » Israeli Soldiers (IDF) Photograph Dead as Trophies - Oznik Sat, 24 May 2008 22:19:41 +0000 http://muslimmatters.org/2008/05/20/some-thoughts-on-islamic-finance-and-the-mortgage-crisis/#comment-20394 [...] Some Thoughts on Islamic Finance and the Mortgage Crisis [...] [...] Some Thoughts on Islamic Finance and the Mortgage Crisis [...]

]]> By: reader http://muslimmatters.org/2008/05/20/some-thoughts-on-islamic-finance-and-the-mortgage-crisis/#comment-20240 reader Wed, 21 May 2008 21:18:33 +0000 http://muslimmatters.org/2008/05/20/some-thoughts-on-islamic-finance-and-the-mortgage-crisis/#comment-20240 I hope that was a joke MR... there is a lot to be said about hoarding wealth when out brethren are suffering poverty, disease, and oppression. The sahabah, the weatlhy and the poor, in good times and in bad, spent their money and used to compete in spending for the sake of Allah SWT. If we stop treating money as the life giver, it will stop taking our lives. I hope that was a joke MR… there is a lot to be said about hoarding wealth when out brethren are suffering poverty, disease, and oppression. The sahabah, the weatlhy and the poor, in good times and in bad, spent their money and used to compete in spending for the sake of Allah SWT.
If we stop treating money as the life giver, it will stop taking our lives.

]]> By: j http://muslimmatters.org/2008/05/20/some-thoughts-on-islamic-finance-and-the-mortgage-crisis/#comment-20210 j Wed, 21 May 2008 08:56:31 +0000 http://muslimmatters.org/2008/05/20/some-thoughts-on-islamic-finance-and-the-mortgage-crisis/#comment-20210 Good article, however it (like the WaPo article) concentrated on the current woes of the mortgage crisis and not the ways in which Islamic finance was able to avoid them. With most of the Islamic mortgages almost mimicking verbatim conventional schemes (as pointed out by Dr. El-Gamal in the article) there does not seem to be a real difference between the two schemes that would attribute avoiding being hit by the mortgage crisis. True islamic contracts don't have variable interest rates, but it would be interesting to know the fluctuation of those rate for conventional mortgages, as Islamic ones are generally higher than conventional mortgages to begin with. If the peak of fluctuation reaches the pre-crisis islamic rate or slightly above, there really is no difference. What would the real differences be? The only thing that I can think would account for this is that: 1- Islamic mortgages are a small niche market and are functioning in only a portion of the US, particularly places that have not seen the down side of the recession as hard as others. 2- Islamic Mortgage companies are relatively <strong>very</strong> conservative in their selection and pre-qualification criteria, something that most other Mortgage companies had become extremely lax on (to the point of offering no money down to people with literally no money). If this is the case then the difference is not really in the fact that they are "Islamic" but that they chose to follow stricter self-regulation than other companies. How do Islamic mortgages fair against those companies that did not go lax in offering mortgages? With their generally higher interest rates and small number of middle to lower class mortgagees it is hard to determine. Good article, however it (like the WaPo article) concentrated on the current woes of the mortgage crisis and not the ways in which Islamic finance was able to avoid them.
With most of the Islamic mortgages almost mimicking verbatim conventional schemes (as pointed out by Dr. El-Gamal in the article) there does not seem to be a real difference between the two schemes that would attribute avoiding being hit by the mortgage crisis. True islamic contracts don’t have variable interest rates, but it would be interesting to know the fluctuation of those rate for conventional mortgages, as Islamic ones are generally higher than conventional mortgages to begin with. If the peak of fluctuation reaches the pre-crisis islamic rate or slightly above, there really is no difference.

What would the real differences be? The only thing that I can think would account for this is that:
1- Islamic mortgages are a small niche market and are functioning in only a portion of the US, particularly places that have not seen the down side of the recession as hard as others.
2- Islamic Mortgage companies are relatively very conservative in their selection and pre-qualification criteria, something that most other Mortgage companies had become extremely lax on (to the point of offering no money down to people with literally no money).

If this is the case then the difference is not really in the fact that they are “Islamic” but that they chose to follow stricter self-regulation than other companies. How do Islamic mortgages fair against those companies that did not go lax in offering mortgages? With their generally higher interest rates and small number of middle to lower class mortgagees it is hard to determine.

]]> By: MR http://muslimmatters.org/2008/05/20/some-thoughts-on-islamic-finance-and-the-mortgage-crisis/#comment-20202 MR Wed, 21 May 2008 01:05:27 +0000 http://muslimmatters.org/2008/05/20/some-thoughts-on-islamic-finance-and-the-mortgage-crisis/#comment-20202 Muslims must save. BY ALL MEANS NECESSARY! Muslims must save. BY ALL MEANS NECESSARY!

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