| I don't share in the belief that subprime loans cause defaults.
I believe that unscrupulous lenders cause defaults because of bad servicing of those loans. When a borrower's credit rating is so much as destroyed by a lender who doesn't post payments when recieved but 15 days late,or when a timely payment is returned, or when the lender refuses to accept payments by any means but Western Union,tacking on another $350.00 to $400 to an already hi payment,ARGHHHH! |
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| Above Posted By:
cjh
| Thu, 12 Apr 2007 19:18:48 EST |
| All the housing pundits in the US have been saying although the housing economy is slowing, its still carrying the rest of the Nation. The new Freddie Mac loan standards will very likely be a hit below the belt of the economy and for what? As many have stated, there are a multitude of sub-prime loans STILL WORKING nicely. The exception is not the rule. Come on lenders, get smart about this problem. Analyze it and make your own adjustments. Middle America still wants to buy a house! |
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| Above Posted By:
Darrell
| Fri, 23 Mar 2007 07:31:59 EST |
| We are forgetting something: Default is still the exception. As usual, we throw out the baby with the bath water. Rather than subtle adjustments, we will now make a blanket rule that sends the economy into a tailspin! I never believe in 100% Financing or teaser rates, but adjustable mortgages are a valid tool. Don't over-react to the exception! |
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| Above Posted By:
Gary
| Wed, 14 Mar 2007 04:00:10 EST |
| respnding to:
Posted By: Anonymous | Wed, 28 Feb 2007 10:24:14 EST
"My comment is if we know that the subprime loans are causing defaults, then why not find a way to convert the loans to a fixed rate for the borrower. We recognize that the adjustable is what is causing the parties to not be able to pay the amount owed."
C'mon...Wouldn't that be a win-win situation? Oops forgot, then someone "wouldn't" be getting rich quick, while all these "FAMILIES" lose their homes!
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| Above Posted By:
Tammy Wendel
| Tue, 13 Mar 2007 12:40:46 EST |
| As a S. NJ Realtor, the ride was tremendous. There are a lot of people who took the 100% financing and the interest only lows. Now we see everything was the untruth. Now the market has turned to benefit the wealthy investor who can purchase that foreclosed property. The second homes at the shore will be a good bang for your buck soon. I try to tell my clients not to buy what they cannot afford. Say no to 100% financing & interest only loans. Just ask your friends. |
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| Above Posted By:
Earl The Realtor
| Sat, 10 Mar 2007 05:33:26 EST |
| Its incredible how in just six months I've witness the subprime loans appreciate and deppreciate. As a young Loan officer Im glad I came into the business with ethics to know whats right for my borrowers. ARMS are good for savvy investors or first time home buyers, that should refi before their adjustable mortgage recasts,and get a FIX . I mean our job as loan officer is not just to facilitate the loan process, but to educate our clients on how to get into a stronger financial positions. |
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| Above Posted By:
chris
| Fri, 9 Mar 2007 14:13:34 EST |
| The problem with these loans are people cannot refinance because the value of the homes have depreciated. If someone bought a home in the Boston Area in the past 2 years and did 100% financing, chances are that they owe more on the property than it will appraise for and they cannot get another loan. |
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| Above Posted By:
vinny
| Wed, 7 Mar 2007 13:21:12 EST |
| About seven or eight years ago when I worked as a wholesale subprime underwriter I remember not being able to approve loans for buyers with 680 credit scores because they did not have the required trade lines. The subprime market significantly relaxed lending guidelines as the prime lenders began doing loans that were previously considered subprime loans. I believe that the subprime lender provides a valuable service to people who would not otherwise be able to achieve the American Dream. |
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| Above Posted By:
Dee123
| Wed, 7 Mar 2007 07:35:45 EST |
| I agree with Abigail. The strategists have no idea what they are talking about as far as "teaser" rate loans. This is merely a way for the average joe with less than perfect credit to get in the door so they they too can have the american dream. I always let the borrowers know they can refi before the adjustment. So they are never "duped"! Others just don't want the responsibility of having a mortgage. Foreclosure will only get worse with this in "strategy" in place. |
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| Above Posted By:
Kandyb
| Tue, 6 Mar 2007 08:50:40 EST |
| Absolutely crazy, these are adults who knew what they were getting themselves into... THEY decided when the terms adjusted to go into default, THe World should not suffer with the Lack of Discipline others have. There are many people with a 580 c/s who received 100% financing maintaining and paying their loan accordingly. In these days, who does NOT have less than perfect credit?!
Loan Officer for 5 years. |
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| Above Posted By:
Anonymous
| Mon, 5 Mar 2007 11:21:35 EST |
| I am a mortgage broker. Many of the arms I sold were to people who really wanted them. Many of them with the thought to refi in a few years. They new what to expect. |
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| Above Posted By:
anonymous
| Thu, 1 Mar 2007 15:58:20 EST |
| It's time has come. I believe we have really damaged the new home buyer..put a dent into the economy, and paid a handful of predators a pretty penny to do it! I believe in responsible lending. This ARM strategy is for investors. The average person is NOT an investor. I couldn't wait for this to stop! Now we will watch our own children pick-up the tab - like they dont have it hard enough already! |
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| Above Posted By:
michelle santiesteban
| Wed, 28 Feb 2007 18:58:07 EST |
| This biz is changing and all the doom and gloom talk just fosters fear. If you are just an "ordertaker" then it's time for you to go back to your fulltime job! True brokers and bankers will find ways to adapt and continue to make their living. Our society listens to the few in charge when they predict "the end" and it's time for all of us to start thinking for ourselves and initiate the needed changes both in this industry as well as in our Government. Stop following the leaders their lost!! |
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| Above Posted By:
Ron
| Wed, 28 Feb 2007 13:45:58 EST |
| I am so happy they are doing this. I was duped into one of these plans and they are actually highway robbery. I have excellent credit and put down 20% but I was sold a bill of lies on how the program actually worked. I was trusting because my first experience in buying a home went well with fixed rate and I knew I was buying the next home to sell in the next 3-5 years, but I didn't realize the behind the scenes rates. What a rip off! Just say no to adjustable ANYTHING! |
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| Above Posted By:
Anonymous
| Wed, 28 Feb 2007 10:24:14 EST |
| My comment is if we know that the subprime loans are causing defaults, then why not find a way to convert the loans to a fixed rate for the borrower. We recognize that the adjustable is what is causing the parties to not be able to pay the amount owed. To adjust the rate to an reasonable fixed rate looking at the fact that many of these borrower are people who have jobs regardless of whether they are full doc or stated. Flexibility would be the cure. A payment plan that works for both parties. |
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| Above Posted By:
Joan
| Wed, 28 Feb 2007 05:44:05 EST |
| This is a blatant and utterly duplicitous PR pose. The goal is not to protect borrowers at all. The goal is to limit the culpability faced by the players in the sub-prime game. |
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| Above Posted By:
Anonymous
| Tue, 27 Feb 2007 19:47:11 EST |
| Well I for one am glad the subprime market pitched a fit and is positioned to implode. At least I'll stay busy as an appraiser and get the foreclosure appraisals. This is as a result of greed.
All the lenders want are fees. Guess what....
580 FICO scores + 100% financing + Lack of discipline = Foreclosure.
You don't need an MBA to figure out the model. |
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| Above Posted By:
Dan
| Tue, 27 Feb 2007 17:14:30 EST |
| Shame on Freddie. They were never chartered to get into high risk loans. With 20 years as a loan officer, I remember the times when we only had Conforming, FHA and VA. I also remember when Prudential came out with a no income loan in 1989. All these lenders and the array of new programs that we saw including 100% stated income on a 580 score, were the result of "we are covered with property appreciation running over 20% per year". Now the party is over and we all have to pay for the hangover. |
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| Above Posted By:
Luis Salim
| Tue, 27 Feb 2007 16:36:44 EST |
| Well, we can now be sure the foreclosure rate will double. These brilliant strategists just guaranteed money will be unavailable for folks to refi out of these teaser loans.
My experience (10 yrs as bkr.) with the teaser rate people is they either refi or sell before the higher rates kick in. Also, most of the loans I write are fixed for 5 years before the rate changes.
Just a very cruel way to crush the young, first time buyers! Thank you Fannie/Freddie!!
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| Above Posted By:
Abigail
| Tue, 27 Feb 2007 16:05:14 EST |
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