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Spetsnazos
01-25-2009, 10:49 PM
and blame the idiots signing the paperwork.

Its pretty retarded blaming the corporations that gave loans to the people when the people are the ones signing that they promise to pay back.

otisthebat
01-25-2009, 10:50 PM
and blame the idiots signing the paperwork.

Its pretty retarded blaming the corporations that gave loans to the people when the people are the ones signing that they promise to pay back.

how bout we blame the CRA act which forces banks to give out ****ty loans that they KNOW wont be paid back.

markymark69
01-25-2009, 11:07 PM
and blame the idiots signing the paperwork.

Its pretty retarded blaming the corporations that gave loans to the people when the people are the ones signing that they promise to pay back.

It's more complicated than you make it out to be.

In some neighborhoods elderly people with a ton of equity in their houses were targeted. I know of one area in DC where about 150 old people were taken for a ride.
Im not saying that every option ARM went to elderly people..it is just not as cut and dried as you make it out to be.

In my own case..the first mort broker we dealt with..promised a 30yr fixed 5.5 with a half point buy down. He faxed over the paperwork I read it over signed it and fed ex'ed it back...
go to close...out pops the 3yo 5.5 option ARM with a 5yr balloon payment. Naturally we walked away from the closing and rescheduled the closing and found an honest broker.

We filed a complaint with state attorney...but I know they never did anything about that broker...

markymark69
01-25-2009, 11:11 PM
how bout we blame the CRA act which forces banks to give out ****ty loans that they KNOW wont be paid back.

Patently false.
http://www.ffiec.gov/cra/

please show me where in the act it forces a lending institution to give out any loans?

otisthebat
01-25-2009, 11:11 PM
It's more complicated than you make it out to be.

In some neighborhoods elderly people with a ton of equity in their houses were targeted. I know of one area in DC where about 150 old people were taken for a ride.
Im not saying that every option ARM went to elderly people..it is just not as cut and dried as you make it out to be.

In my own case..the first mort broker we dealt with..promised a 30yr fixed 5.5 with a half point buy down. He faxed over the paperwork I read it over signed it and fed ex'ed it back...
go to close...out pops the 3yo 5.5 option ARM with a 5yr balloon payment. Naturally we walked away from the closing and rescheduled the closing and found an honest broker.

We filed a complaint with state attorney...but I know they never did anything about that broker...

i have no idea what you just said.

matix1
01-25-2009, 11:15 PM
i have no idea what you just said.

me either but im interested...can you explain a little more? i understood talking about the thirty year fixed mort. part but was lost after that.

markymark69
01-25-2009, 11:17 PM
i have no idea what you just said.

Ok..let me give you analogy..

You go to buy a car 2008 Nissan 308Z for $32k. The sales person tells you the payments will be for 5yrs..$350/mo. You say ok cool. Give me the paperwork to sign.

When he gives it to you..The price of the car is $90k..your payments are $550/mo and in 2 years you will owe the bank $85k or the car will be repo'd and your credit is ruined.

Thats similar to what the mortgage broker did. Except in the case of the mortgage broker he actually broke state and federal laws...and nobody would prosecute him for it.

matix1
01-25-2009, 11:19 PM
so he basically just tells you your price and then changed it? how the hell do people actually go along with that?

otisthebat
01-25-2009, 11:20 PM
Patently false.
http://www.ffiec.gov/cra/

please show me where in the act it forces a lending institution to give out any loans?


The Community Reinvestment Act is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods

the word encourage is a nice word for force.

the banks would then give out shady loans to the low income families that would be impossible for them to pay back.

otisthebat
01-25-2009, 11:21 PM
Ok..let me give you analogy..

You go to buy a car 2008 Nissan 308Z for $32k. The sales person tells you the payments will be for 5yrs..$350/mo. You say ok cool. Give me the paperwork to sign.

When he gives it to you..The price of the car is $90k..your payments are $550/mo and in 2 years you will owe the bank $85k or the car will be repo'd and your credit is ruined.

Thats similar to what the mortgage broker did. Except in the case of the mortgage broker he actually broke state and federal laws...and nobody would prosecute him for it.

and how is that a win for the finance department? if you cant pay the note then how do they make their money? seems counter productive.

edit: woot 2K posts.

markymark69
01-25-2009, 11:23 PM
i have no idea what you just said.


me either but im interested...can you explain a little more? i understood talking about the thirty year fixed mort. part but was lost after that.

Ok..originally I received paperwork for a 30yr fixed interest rate of 5.5%. There was a fee of .5% of the total sale. That is a very standard type of mortage

When we showed up to closing the paperwork was switched to a option arm of 5.5% with a 5 yr balloon payment.

What that means is the loan was really for 11%..but for the first 3yrs..the interest rate would only be for 5.5%. So for the first 3yrs payments would be roughly $1600/mo. After 3yrs...the payments would increase to about $2700/mo
After a total of 5yrs..I would owe the balance of the mortgage or lose my house. That's what they call a balloon payment.

Now a regular person who didnt really know anything about mortgages..would just see the 5.5% and think oh ok..thats what I was quoted..Im good to go.
But I read every single line of the closing documents and I paid a closing attorney, so it was caught right away.

markymark69
01-25-2009, 11:29 PM
and how is that a win for the finance department? if you cant pay the note then how do they make their money? seems counter productive.

edit: woot 2K posts.

You have to understand the mortgage broker gets paid for originating the loan...he doesnt care if its paid..or if its a good loan. At that time mortgages were sold or securitized (bundled with other loans) so nobody...including the banks cared if the loan was sensible or not.

Honestly...the housing crisis rests squarely on the shoulders of regulators. They did not do their job.

When my wife and I qualified for a mortgage..all they did was run our credit scores and because we were around 740-750..we qualified for a $700k NINJA (no income no justifiable assets) loan on a $100k salary.
There is absolutely no way we could have afforded a $700k mort. but just about any bank was willing to lend it to us.

matix1
01-25-2009, 11:29 PM
Ok..originally I received paperwork for a 30yr fixed interest rate of 5.5%. There was a fee of .5% of the total sale. That is a very standard type of mortage

When we showed up to closing the paperwork was switched to a option arm of 5.5% with a 5 yr balloon payment.

What that means is the loan was really for 11%..but for the first 3yrs..the interest rate would only be for 5.5%. So for the first 3yrs payments would be roughly $1600/mo. After 3yrs...the payments would increase to about $2700/mo
After a total of 5yrs..I would owe the balance of the mortgage or lose my house. That's what they call a balloon payment.

Now a regular person who didnt really know anything about mortgages..would just see the 5.5% and think oh ok..thats what I was quoted..Im good to go.
But I read every single line of the closing documents and I paid a closing attorney, so it was caught right away.


holy **** man thats crazy. good thing you caught it. when i can finally buy a house im def. going to get a closing attorney after reading that.

FIVE OAKES
01-25-2009, 11:31 PM
and how is that a win for the finance department? if you cant pay the note then how do they make their money? seems counter productive.

edit: woot 2K posts.

They get their money when they repo your house. Either way, they win. If you're actually able to pay, they get a lot more money than they should - and if you can't pay, they get your house and sell it to someone else, starting the process all over again.

markymark69
01-25-2009, 11:33 PM
holy **** man thats crazy. good thing you caught it. when i can finally buy a house im def. going to get a closing attorney after reading that.

Its cheap. I think we paid $500. You are required to use a closing company or a closing attorney. I do believe some states mandate a closing attorney. Im willing to bet the ones that do..are not suffering from high rates of mortgage fraud.

What really bothered us...is the fact that the mortgage broker violated state laws (California and Virginia) and federal laws...but nobody would prosecute him.

matix1
01-25-2009, 11:36 PM
Its cheap. I think we paid $500. You are required to use a closing company or a closing attorney. I do believe some states mandate a closing attorney. Im willing to bet the ones that do..are not suffering from high rates of mortgage fraud.

What really bothered us...is the fact that the mortgage broker violated state laws (California and Virginia) and federal laws...but nobody would prosecute him.

thats insane. you think they would be going after them... how bad does it hurt your credit if you default on a car? is it as bad as a house? cuz a house is like 7 years or something isnt it

markymark69
01-25-2009, 11:42 PM
thats insane. you think they would be going after them... how bad does it hurt your credit if you default on a car? is it as bad as a house? cuz a house is like 7 years or something isnt it

All of it stays on your record for 7yrs. But I am not sure how foreclosure effects your FICO score compared to a car repo.

Its pretty funny..as soon as a mortgage shows up on your credit record..all of sudden you start receive letters of credit from Home Depot and Lowes.

You can check your credit files every year for free:
https://www.annualcreditreport.com/cra/index.jsp

Its important to check it because things that are not yours can show up on your credit.

matix1
01-25-2009, 11:55 PM
i cant wait till i can get a house really..ya i checked it a couple months ago, i stress about it alot actually haha

nutsy54
01-26-2009, 04:42 AM
and blame the idiots signing the paperwork.

Its pretty retarded blaming the corporations that gave loans to the people when the people are the ones signing that they promise to pay back.


how bout we blame the CRA act which forces banks to give out ****ty loans that they KNOW wont be paid back.Agree with both posts. But mainly had to get on record agreeing with Spetsnazos :eek:

Nobody was ever held at gunpoint in a locked room until they put their name on a loan/mortgage contract which they had no effective way to actually pay. Nobody was ever forced to sign an insane ARM, or an interest-only loan, or one with massive balloon payments a few years down the road.

CRA certainly helped create the disaster we have today, but it also took stupid people making stupid financial decisions.

5x10
01-26-2009, 05:16 AM
no lending standards/underwriting ftl

RS828
01-26-2009, 06:32 AM
This is what happens when you have idiotic politicians who want every single person in the country to have their own home, including people who can't pay their bills, specifically minorities.


http://www.youtube.com/watch?v=eW9viaJatpo

MAPump
01-26-2009, 06:38 AM
I love the people who are surprised like Johnny ****bum who works at Taco Bell for $9 an hour and wonders why his $500,000.00 home is being foreclosed on.

Spetsnazos
01-26-2009, 08:29 AM
It's more complicated than you make it out to be.

In some neighborhoods elderly people with a ton of equity in their houses were targeted. I know of one area in DC where about 150 old people were taken for a ride.
Im not saying that every option ARM went to elderly people..it is just not as cut and dried as you make it out to be.

In my own case..the first mort broker we dealt with..promised a 30yr fixed 5.5 with a half point buy down. He faxed over the paperwork I read it over signed it and fed ex'ed it back...
go to close...out pops the 3yo 5.5 option ARM with a 5yr balloon payment. Naturally we walked away from the closing and rescheduled the closing and found an honest broker.

We filed a complaint with state attorney...but I know they never did anything about that broker...

honest mistake??

i used to be a mortgage underwriter, i never originated loans tho, and I dont see how you can blame the lender. They arent the ones that signed the paperwork for you

SDMuscleBuddy
01-26-2009, 08:36 AM
Individual mortgage foreclosures are the fault of the individual, though unethical behavior by the lenders made it very easy for people to quickly get in over their heads. What does fall on the lenders are the problems caused by the default credit swaps, and over-leveraging the paper they were holding.

Spetsnazos
01-26-2009, 08:36 AM
no lending standards/underwriting ftl

there was plenty of underwriting...trust me, or i wouldnt of had a job. We were busy too

Bujumbles
01-26-2009, 08:37 AM
their both to blame/thread

ElMariachi
01-26-2009, 08:43 AM
and blame the idiots signing the paperwork.

Its pretty retarded blaming the corporations that gave loans to the people when the people are the ones signing that they promise to pay back.


A NY professor estimated that around 3/4 of people blatantly lied on their mortgage applications.

Pay_Me
01-26-2009, 08:44 AM
A NY professor estimated that around 3/4 of people blatantly lied on their mortgage applications.

NINJA loans FTL. From both unscruplous brokers and lying customers

5x10
01-26-2009, 08:57 AM
there was plenty of underwriting...trust me, or i wouldnt of had a job. We were busy too

underwriting for subprime loans was crap

underwriters were told to underwrite X amounts of files a day, which doesnt give them enough time to verify everything. that task has handed off to the processor who were overworked and easily bribed

DCarruso
01-26-2009, 09:11 AM
The mortgage industry, the credit rating agencies (Moody, S&P, etc, not those personal credit report agencies), and Wall Street all share the blame.

The consumers are at fault too. But, if you go to get a house, and the lender tells you that with your income, you can afford a bigger and nicer house, how many are going to turn that down and insist on a smaller, less nice, but cheaper house?

The consumers are relying on the 'expert opinions'.

Spetsnazos
01-26-2009, 09:17 AM
underwriting for subprime loans was crap

underwriters were told to underwrite X amounts of files a day, which doesnt give them enough time to verify everything. that task has handed off to the processor who were overworked and easily bribed

the way it worked where I was at was like this

- You had to underwrite a certain amount of loans
- After that amount you got a bonus on the number of loans you underwrote
- If you missed ****, then you were held accountable...you didnt want to miss ****
- Lots of stress
- Jobs have stress, get over it

Spetsnazos
01-26-2009, 09:18 AM
The mortgage industry, the credit rating agencies (Moody, S&P, etc, not those personal credit report agencies), and Wall Street all share the blame.

The consumers are at fault too. But, if you go to get a house, and the lender tells you that with your income, you can afford a bigger and nicer house, how many are going to turn that down and insist on a smaller, less nice, but cheaper house?

The consumers are relying on the 'expert opinions'.

and whos fault is that??

Spetsnazos
01-26-2009, 09:19 AM
underwriting for subprime loans was crap

underwriters were told to underwrite X amounts of files a day, which doesnt give them enough time to verify everything. that task has handed off to the processor who were overworked and easily bribed

oh and i never did subprime loans, only prime...and I seen some shady **** giong on with prime loans.

Biggest scammers = borrowers and appraisers. Property flipping and overappraisals were the biggest scammers of the industry, not the lenders.

5x10
01-26-2009, 09:23 AM
oh and i never did subprime loans, only prime...and I seen some shady **** giong on with prime loans.

Biggest scammers = borrowers and appraisers. Property flipping and overappraisals were the biggest scammers of the industry, not the lenders.

i worked for a subprime lender as an account rep, there wasnt a loan i couldnt get approved
seriously, the bank was just giving out money
u know what we needed for job verification?
3 letters of reference from your friends willing to say that u were their landscaper
then they say, ok, its reasonable that the landscaper makes 5k a month, this guy has no open tradelines or debt,so he can afford a $250k house at a 50%dti

so you could buy a quarter million dollar house with 3 letters
if thats not poor standards/underwriting, i dont know what is

towards the end, i had a 1.3 million dollar loan that got denied due to false bank stmts in the file. the broker submitted it to New century, and had it closed within a week

1stindoor
01-26-2009, 09:29 AM
Good thread, and like Nutsy I have to admit I agree with Spets on this one too. However, I also agree there's plenty of blame to go around. I personally think think the lenders are just as much at fault as the borrowers simply because they were making a profit off of others ignorance.

BTW, refinancing my home right now, going from a 6.375% loan to a 4.875 (15 yr note); I'll own the house outright in less than ten at the rate the wife and I are going.

Spetsnazos
01-26-2009, 09:33 AM
i worked for a subprime lender as an account rep, there wasnt a loan i couldnt get approved
seriously, the bank was just giving out money
u know what we needed for job verification?
3 letters of reference from your friends willing to say that u were their landscaper
then they say, ok, its reasonable that the landscaper makes 5k a month, this guy has no open tradelines or debt,so he can afford a $250k house at a 50%dti

so you could buy a quarter million dollar house with 3 letters
if thats not poor standards/underwriting, i dont know what is

towards the end, i had a 1.3 million dollar loan that got denied due to false bank stmts in the file. the broker submitted it to New century, and had it closed within a week


I'll agree that the standards should have been higher if thats the case. Once a subprime loan got on my desk and I looked at it and the borrower had massive lates, mortgage lates, a credit score of like 550 and all sorts of other **** in the file and it was the size of a dictionary. I was like "WTF is this ****", then I flipped around and realized it was a subprime loand and said GTFO and sent it off.

I'm surprised people would even do subprime loans,

but then it goes back to what I said.

YOU as the CONSUMER should have the sense into reading into a 300,000 LOAN. A LOAN that you will be paying for 30 YEARS. If you have no MENTAL CAPACITY to read the paperwork for something as big as this, YOU are the only one to blame

5x10
01-26-2009, 09:41 AM
YOU as the CONSUMER should have the sense into reading into a 300,000 LOAN. A LOAN that you will be paying for 30 YEARS. If you have no MENTAL CAPACITY to read the paperwork for something as big as this, YOU are the only one to blame

i do agree that people should be responsible for their actions
but
the banks responsibility with our deposits should Trump that of the consumers. people are greedy and if not put in check, everybody will have their hand in the cookie jar

theres a reason all of these banks are basically insolvent

Spetsnazos
01-26-2009, 09:44 AM
i do agree that people should be responsible for their actions
but
the banks responsibility with our deposits should Trump that of the consumers. people are greedy and if not put in check, everybody will have their hand in the cookie jar

theres a reason all of these banks are basically insolvent

The banks just made it easy for people to borrow money.

Its like I can go and buy a car right now that cost 30k and make payments/lease but I dont...because my car is fine and I dont need the extra financial burden. The car company is there and offering a loan to almost everyone, so why isnt everyone putting their hand in the cookie jar?

I understand people are greedy, and that is why they have only one person to blame: themselves.

Enso
01-26-2009, 09:47 AM
The banks just made it easy for people to borrow money.

Thus, both entities are equally to blame.

5x10
01-26-2009, 09:47 AM
The banks just made it easy for people to borrow money.


to say it was easy is putting it too lightly
i had a broker get turned down for a new honda loan, but got a 100% loan on a house
dont you see the problem

who am i supposed to blame as a shareholder of wamu?
the individual borrowers? of maybe managements decision to lower underwriting standards so they could get some of the kool-aid everyone was drinking?

im not saying that borrowers are not to blame, but who has the higher reponsibility?

nutsy54
01-26-2009, 09:50 AM
The consumers are at fault too. But, if you go to get a house, and the lender tells you that with your income, you can afford a bigger and nicer house, how many are going to turn that down and insist on a smaller, less nice, but cheaper house?

The consumers are relying on the 'expert opinions'.And if the car dealer tells you the Lamborghini really is affordable, do you blindly sign over half your paycheck for that? If people are too stupid to say "NO" to a salesman, whatever the product is, then the results are their own damn fault.

Sorry, but many people managed to look at the numbers, look at their annual pay, and buy a home they could effectively afford. And today - those people aren't freaking out about possible foreclosure, because they're still making their reasonable mortgage payment.

Spetsnazos
01-26-2009, 09:54 AM
I guess greedy people always want someone else to blame for their mistakes

I mean there is an amortization schedule IN YOUR LOAN DOCS that you read over...it tells you want your payment will be and how much goes to interest/principal.

I mean if you make $3k a month and the monthly payment is $2700...does sense set in or is it the lenders fault again?

Are the lenders suppose to be babysitters ??

Enso
01-26-2009, 09:56 AM
And if the car dealer tells you the Lamborghini really is affordable, do you blindly sign over half your paycheck for that? If people are too stupid to say "NO" to a salesman, whatever the product is, then the results are their own damn fault.

Sorry, but many people managed to look at the numbers, look at their annual pay, and buy a home they could effectively afford. And today - those people aren't freaking out about possible foreclosure, because they're still making their reasonable mortgage payment.

Face it, not everybody is smart. Policy to exploit people is bad policy. It would be nice if everyone was smart enough to see through the crap, but that is too utopianistic. The banks, lenders, and salespeople KNEW better, but they did it anyway for the sake of making money.

Remember how the soldiers were treated with the IOU's after the Revolutionary War? How people paid them less money than their promissory notes were worth, and then cashed them in for profit?

5x10
01-26-2009, 09:57 AM
Are the lenders suppose to be babysitters ??

thats what underwriting is
auditing and looking at credit profiles to determine if the borrower is credit worthy
if the bank determines that a bum with no job is eligible for a $250k house, whos shoulders does that bad loan fall on?

Enso
01-26-2009, 09:57 AM
Are the lenders suppose to be babysitters ??

The smart ones are. Only an idiot gives a loan to someone who can't pay.

nutsy54
01-26-2009, 10:02 AM
The smart ones are. Only an idiot gives a loan to someone who can't pay.Unless the Government forces them to give that loan, then takes on all responsibility for repayment if/when it defaults. . .

Hooray for the CRA!

markymark69
01-26-2009, 10:15 AM
I guess greedy people always want someone else to blame for their mistakes

I mean there is an amortization schedule IN YOUR LOAN DOCS that you read over...it tells you want your payment will be and how much goes to interest/principal.

I mean if you make $3k a month and the monthly payment is $2700...does sense set in or is it the lenders fault again?

Are the lenders suppose to be babysitters ??

You are f&cking kidding me right?
As a lender...if you want to stay solvent you better make sure your borrowers have the ability to pay your money back or you have collateral to recoup your losses.

I agree the borrower has a responsibility to live within their means. But the lender also has a responsibility to make sure their loans are solvent. It is common business sense that if you lend money or insure anyone..you have to have stringent underwriting...is there ANYONE on here that can argue there was adequate underwriting within the mortgage industry?

You guys seem to forget..the bailout money has not gone to the borrowers that made foolish decisions. The money has gone to lenders who lent money foolishly.

The mere fact that my wife and I qualified for a ninja loan for $700k based on a 740 FICO is ridiculous. BTW: That was a wholesale product offered by WaMu.

We didnt go with that. But even during the verification process..we verified our income by faxing a letter on company letterhead. That was it.

The mortgage industry lent out money like it was growing on trees because they knew in the end the US government would bail them out. They gambled and they won.

It's the tax payers that are stuck holding the note.


Without the loose lending practices there would not have been a dramatic uptick in housing prices. Loose credit was the only facilitator in the housing bubble.

Enso
01-26-2009, 10:15 AM
Unless the Government forces them to give that loan, then takes on all responsibility for repayment if/when it defaults. . .

Hooray for the CRA!

http://www.milkeninstitute.org/10022008slides.pdf

markymark69
01-26-2009, 10:17 AM
Unless the Government forces them to give that loan, then takes on all responsibility for repayment if/when it defaults. . .

Hooray for the CRA!

Where in the CRA did it force banks and more importantly..where did it force non-fdic insured lenders to give out mortgages? ;)

Link please.

*edit* Keep in mind Countrywide Bank and Countrywide Financial Corp were legally two separate entities...everyone knows Countrywide bank is under the CRA...was Countrywide Financial Corp also covered under the CRA? ;)
I know the answer nutsy...Im just curious if you really have done the research.

Pay_Me
01-26-2009, 10:24 AM
You are f&cking kidding me right?
As a lender...if you want to stay solvent you better make sure your borrowers have the ability to pay your money back or you have collateral to recoup your losses.


In many cases though the loan was bundled up and resold with a patently wrong AAA rating. Allowing the contagion to spread to funds, pensions who by their charters could only purchase AAA rated securities.

Yet why don't we hear more screaming about Moore's and S&P?

Spetsnazos
01-26-2009, 10:25 AM
The smart ones are. Only an idiot gives a loan to someone who can't pay.

then blame Fannie Mae which is in bed with the govt

cause they are the ones saying they would buy the loans if lenders would originate based on Fannie Mae automatic underwriting approval.

markymark69
01-26-2009, 10:35 AM
In many cases though the loan was bundled up and resold with a patently wrong AAA rating. Allowing the contagion to spread to funds, pensions who by their charters could only purchase AAA rated securities.

Yet why don't we hear more screaming about Moore's and S&P?

I agree. The entire industry is to blame for the housing issue, however borrows who banked on flipping their house are also to blame....but lets be real...
If the banks were willing to lend $700k to a couple like us making only $100k..while we would have been stupid to take on a $700k mortgage..the banks were equally stupid to offer me a loan like that.

ElMariachi
01-26-2009, 01:41 PM
The mortgage industry, the credit rating agencies (Moody, S&P, etc, not those personal credit report agencies), and Wall Street all share the blame.

The consumers are at fault too. But, if you go to get a house, and the lender tells you that with your income, you can afford a bigger and nicer house, how many are going to turn that down and insist on a smaller, less nice, but cheaper house?

The consumers are relying on the 'expert opinions'.



A lot of "consumers" lied their asses off.............fraudulent pay stubs......blatant lies on applications....etc.........the mortgage industry played their role, especially when it came to verification of the information on applications.

Nowadays banks are running applications through tax records, to verify that the income information is correct....they could have easily started to do that over a decade ago.


I've been involved in doing some advertising and such for various car dealerships and I know salespeople who freely admit to having forged paystubs for people who couldn't afford their vehicles.....or those.....general managers included....who accepted obviously forged paystubs. To some degree it still exists, but is not nearly as easy to as once was.

markymark69
01-27-2009, 06:58 AM
Unless the Government forces them to give that loan, then takes on all responsibility for repayment if/when it defaults. . .

Hooray for the CRA!


Where in the CRA did it force banks and more importantly..where did it force non-fdic insured lenders to give out mortgages? ;)

Link please.

*edit* Keep in mind Countrywide Bank and Countrywide Financial Corp were legally two separate entities...everyone knows Countrywide bank is under the CRA...was Countrywide Financial Corp also covered under the CRA? ;)
I know the answer nutsy...Im just curious if you really have done the research.

Im still trying to figure out if Nutsy is just repeating talking points or if he truly understands the CRA.

I would think with all the economic experts on this forum that someone could answer the question.

CarDent
02-02-2009, 01:42 PM
Listen.. Is it your fault that you are ignorant or that you are smart. Remember that society and our parents mold us to become who we are.
Well before you talk about the people who signed the paper work, you need to see the level of education that these people had. These people should not have bought these houses because they were not informed of how bad things could get. They were so ignorant that they decided to ignore the possibilities of how bad things could get. I think the financing companies should have looked at this fact and pay more attention to the risk that they themselves were imposing on the future economy of this country. I still insist that the mortgage companies had more fault in this than the buyers themselves. If you knew that a ****phile was uninformed of the fact that if he abused a child he would go to jail, would you leave your kids alone with this SICKO.
I do not think so. I just think ignorant and irresponsible people should have not been allowed to buy these homes... In fact, I think the US should make it illegal to have variable interest rates on home loans.

Spetsnazos
02-02-2009, 02:22 PM
Listen.. Is it your fault that you are ignorant or that you are smart. Remember that society and our parents mold us to become who we are.
Well before you talk about the people who signed the paper work, you need to see the level of education that these people had. These people should not have bought these houses because they were not informed of how bad things could get. They were so ignorant that they decided to ignore the possibilities of how bad things could get. I think the financing companies should have looked at this fact and pay more attention to the risk that they themselves were imposing on the future economy of this country. I still insist that the mortgage companies had more fault in this than the buyers themselves. If you knew that a ****phile was uninformed of the fact that if he abused a child he would go to jail, would you leave your kids alone with this SICKO.
I do not think so. I just think ignorant and irresponsible people should have not been allowed to buy these homes... In fact, I think the US should make it illegal to have variable interest rates on home loans.

wat, i thought it was genes that made me smarter??

>_<

da_cards
02-02-2009, 02:25 PM
yeah its not their fault people borrowed more than they could afford

CarDent
02-02-2009, 03:14 PM
wat, i thought it was genes that made me smarter??

>_<
Well if your parents, (babysitter, grandma, aunts, uncles e.t.c) did not stimulate your brain enough when you were an infant, then you do not have the upper hand when you go to school. The JEANS.....ok ... genes, do play a role, but if you are never exposed to certain things then your logic is limited.. In my opinion at-least.

PhenoTerminate
05-04-2010, 02:09 PM
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