| Greed always start at the TOP, The Banks and Investors found a way to make quick money. They are the ones with the guidelines for us to follow, they made it easy for every one of us. The Realtor, broker, seller and buyer just played the games by thier rules.... The banks closed their eyes and ears and open their hands. If the door is wide open, the DOGS will can it.... |
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| Above Posted By:
Rondel
| Thu, 21 Jun 2007 17:10:39 EST |
| Regardless of who is or is not at fault, there is an issue that needs to be solved. Let's all take accountability for or actions and do something to fix the problem. In this case GREED was the prime mover. Financial disaster is going to hit individuals, the market and several revenue generating industries. It is what it is. We have to set standards and processes that will prove benefical to all. My firm has several alternatives that are being used very sucessfully. |
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| Above Posted By:
Steven
| Fri, 20 Apr 2007 17:21:13 EST |
| Why are so many willing to fix the blame instead of fixing the problem? My opinion is that all sides are at fault to some extent. However I feel that the ones truly victimized are ultimatly the families and the homeowners. The realtor may suffer some, the mortgage co. may be out some money, the loan officer may be out a job,but families are out the place it takes to keep them together, and with ruined credit, who's gonna rent to them? Shelters don't keep families together! |
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| Above Posted By:
cjh
| Thu, 19 Apr 2007 15:32:24 EST |
| I'm a Realtor who sells 100+ homes a year. Sub-prime applicants were counseled by the LO, then given a step-by-step credit repair program that, if followed, would lower their debt, fix their credit scores, and help them afford a home. My preferred lender requires former-sub-prime credit-repaired borrowers to establish an automatic savings deduction from their paycheck to a savings or investment account as a condition to be met prior to closing. |
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| Above Posted By:
Joseph P Dorodo
| Thu, 19 Apr 2007 11:31:21 EST |
| No, lenders shouldn't be bailing out the borrowers who cant pay their mortgages on time. I have seen a lot of credit in my years and one thing that I have learned is that borrowers are more likely to make their car payment before they make their house payment. I say let the defaulted debtors live in thier cars! |
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| Above Posted By:
DW
| Wed, 18 Apr 2007 16:58:34 EST |
| Any Home owner that has cashed out equity over the past few years does not deserve a break. Keeping up with the Jones' and then walking away scott free has become the National Sport. Use the Bankruptcy laws as a guide. There is no excuse not to be educated in this day and age. The lenders need to pay a price for sloppy underwriting and the borrower needs to live up to the terms of their loan or pay the penalty! |
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| Above Posted By:
foreclose
| Wed, 18 Apr 2007 14:19:54 EST |
| The problem with that is the education factor that most mortgage agent do not explain in depth how much the rate and payment will increase when the term is over, will they be expecting a pay increase and how much in two years to afford the increase because a refinance is not promised, what happens if they fall on rocky ground and lose thier job or get sick>? that is why an ARM loan is not always preferred for every client that is trying to build credit or save money. Wait for a fixed rate |
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| Above Posted By:
Will Jones
| Wed, 18 Apr 2007 00:24:26 EST |
| My husband and I worked in the mortgage industry several years ago. He was a loan officer, I was a marketer. You'd think that two people who were aware of the possible pitfalls would not be able to be taken advantage of. However you couple that with a loan that was traded to a known adversarial lender, combined with fairly well spoken of company who turned adversarial ,you have an idea of what we've run up against. Legislation, if done right, can curb this. |
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| Above Posted By:
cjh
| Tue, 17 Apr 2007 15:14:39 EST |
| Credit worthiness has nothing to do with RACE but rather ignorance and the lack of resources to become educated.
Let it start with us.
Our industry is based on 'referrals'. by placing your borrowers in an ARM to help repair their credit, you must stay connected with them and manage their credit then refinance them into a better loan situation and you will have a client who truly appreciates you therefore a strong foundation for future referrals and a responsible homeowner. |
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| Above Posted By:
Mtg Broker
| Tue, 17 Apr 2007 08:12:48 EST |
| An Educated Borrower is the BEST Borrower! WE in the industry must educate the borrowers so that they can make an informed decision for their family. If WE give the homeowner all the tools to make this decision and they choose to be irresponsible, then we can blame the homeowners. In most cases our industry has failed the homeowners because of greed. |
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| Above Posted By:
Mtg Broker
| Tue, 17 Apr 2007 08:01:03 EST |
| Actually, the majority of subprime borrowers could qualify for a prime loan with a little more work on the loan officer's AND borrowers part. Everyone in the game goes for the quick buck and an LO who told someone to wait on buying a home would lose that buyer to someone who wouldn't stop to think whether that person was a good candidate for homeownership.
As an industry, we need to be more creative in responses and solutions than blaming borrowers. |
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| Above Posted By:
Watchdog
| Mon, 16 Apr 2007 10:27:00 EST |
| All of the activist groups that place so much blame on the industry need to take a look at why that particular homeowner is in the situation they are in. In most cases it will not be because of the LO or the lender, but because of their own irresponsibility. Someone needs to do a study on credit scores. Compare the average credit score of each minority group and then we will see why "whites" tend to get better financing. Maybe they manage their debt better and pay their bills on time. |
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| Above Posted By:
Sandra
| Mon, 16 Apr 2007 08:59:07 EST |
I am also so tired of the homeowner who complains about not being able to afford their mortgage payment when they cashed out their home numerous times in the past few years. You constantly hear story after story on how the LO told them to take this arm with a lower payment and fix your credit and come back.
What those articles fail to mention is the homeowner took out a hundred thousand dollars in equity over the past few years and didn't use the money to payoff debt and fix their credit so when they went to refi into a better loan at a better rate they couldn't do it because their credit went to crap. What did they do with the hundred grand in cash they received thru the years? I can't help it if they lived beyond their means with the equity from their home. |
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| Above Posted By:
Sandra
| Mon, 16 Apr 2007 08:56:28 EST |
I am tired of all the blame being put on the industry and not on the individuals themselves. AS a LO I have told many of my subprime clients not to purchase the homes that they were interested in. I have told them to find somthing that will keep their DR below 45%, but the insist and insist that they can afford the homes that push their DR to 55%.
Every single homeowner that went against my advice has called me within 6 months of buying their first home and cried about how hard it was to be a homeowner and how they need to use their equity already to payoff the debt they built up by furnishing and fixing up their new home. Is it my fault that the lender allowed a FTHB to go up to 55% DR? |
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| Above Posted By:
Sandra
| Mon, 16 Apr 2007 08:54:24 EST |
| People living WELL beyond their means. Lenders and realtors seeing big dollar signs. Little regulation to stop the two from getting together. Sounds like a recipe for disaster to me. When people come to me wanting to borrow for a house and the payment is 50% of their monthly income, I tell them no. People need to live within their means. "If you can barely afford it, don't buy it" is my philosophy. |
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| Above Posted By:
Anonymous
| Mon, 16 Apr 2007 07:46:39 EST |
| All..what happened to the American Dream?? Its not about paying your bills, its about affordable homes for all Americans, both white and black, average or high income.
Both lenders and buyers are all responsible here..in my situation, the blame is on the mortgage broker.."I can get you a good deal with a good credit" turns out he is getting a chunk of the comission from the lender, and the worst loan of all, for a first time buyer?? and I blame myself..I should have done my homework... |
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| Above Posted By:
Dee
| Mon, 16 Apr 2007 07:11:24 EST |
| One of the industries biggest problems is the Lenders jump to fast to put a homeowner in Forclosure. If 1 payment is missed many lenders will not accept a partial payment when the next month rolls around. If the lenders would work with the Homeowner to understand why their payments were late instead of turning a deff ear, they would be far less forclosures. They create the forclosure problem by piling on thousands of $ in legal fees. Work with the homeowner, don't just right them off. |
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| Above Posted By:
Pat
| Mon, 16 Apr 2007 06:56:44 EST |
| Here we go again! Everyone wants to blame the "loan programs" and not take on their own responsibility. I would venture to say that most of the people in sub prime loans could not get any other type of loan. Why? Because they have lousy credit and wanted a 100% loan. They could not make the payments before they had the loan, how in creation are they going to make it after? They need counseling to learn how to develop good saving and payment habits before they are given mortgage loans. |
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| Above Posted By:
Paco Torch
| Sun, 15 Apr 2007 08:32:36 EST |
| PUH-LEEZE! What about the buyers who didn't realize what they were buying and getting themselves into? Who apparently don't know how to read a contract? They hold no accountability?
It was THEIR lust for a home they could not afford that helped sustain the reckless lending practices, which aided the ridiculous drive up of prices, which have ultimately made homes unaffordable for buyers like myself - good credit, stable income, you know - those weird things you used to need to get a home.
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| Above Posted By:
Lupin
| Fri, 13 Apr 2007 17:22:21 EST |
| A possible sustainable solution for alot of people could be just to allow 1-6 months of deferred payments and extend those payments out the back end of the loan with added interest, as long as a large percentage (ie 70%) of the normal housing payment was to be placed in an interest bearing account to be used for future payments. This will provide a cushion and time for most people to adjust their lives to the higher payments with new jobs, second jobs, or to sell or refinance. |
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| Above Posted By:
Anonymous
| Fri, 13 Apr 2007 15:55:29 EST |
| The mortgage industry, as a whole, is dirty from top to bottom. As a third party loss mitigator, I have to deal with mortgage industry professionals who don't know the difference between a forbearance plan and a repayment plan, are unwilling or don't know how to file for a partial claim with the PMI company, use abusive and illegal collection tactics and otherwise are untrained in their profession and void of any "ethical" standards what so ever. Its not about the customer, it's all about money. |
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| Above Posted By:
Curt Pifer
| Fri, 13 Apr 2007 14:31:06 EST |
| The advocates cited 2005 data indicating that 50 percent of all mortgages held by African-Americans and 40 percent held by Latino borrowers were sub-prime compared to only 19 percent of those given to white borrowers."
You don't think there is a valid reason for this?????? Like maybe a poor credit history????? I don't care what you are buying...if you have bad credit it is going to cost you more! It doesn't matter what your skin color is. PAY YOUR BILLS. |
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| Above Posted By:
mr. mortgage
| Fri, 13 Apr 2007 14:20:13 EST |
| These people will not solve their problems! A moratorium won't solve ANYTHING. Let the market forces take place. You cannot save the world. Not everyone is meant to be a homeonwner. |
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| Above Posted By:
mr. mortgage
| Fri, 13 Apr 2007 14:17:27 EST |
| part three of three
It didn't stop there...pre-existing home prices started to increase, which is common when new home prices rise. However, we saw realtors taking advantage of this situation by allowing open bidding wars between buyers, this started the over inflation in home prices that we see today.
Again, this is a problem this industry did to itself from the builders, appraisers, loan companies/mortgage companies/banks and realtors....LET THEM FIX IT ! |
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| Above Posted By:
Frederick Lane
| Fri, 13 Apr 2007 13:51:58 EST |
| part two of three
This market 4-5 years ago saw un-heard off interest rates (2-4% in some markets) and that is when the 'problem' began.
BUILDERS saw an opportunity and took it, low interest rates meant they could increase home prices ( some markets saw modest increases of 30 % but most saw 100-200% ) thus having the borrower believe they were actually getting more home....actually what we saw was deception.....
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| Above Posted By:
Frederick Lane
| Fri, 13 Apr 2007 13:49:39 EST |
| part one of two
I would say, this is exactly what we need this industry to do, "Is stand up and take responsibility"
Yes there is going to be those borrowers who do not deserve a moratorium however we need to place blame squarely on the backs of the industry for the housing problems we are having currently.
I would say that the biggest culprit is the building industry, they are the ones who started this and they should be the ones to take if not full responsibility about 90 % of it.
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| Above Posted By:
Frederick Lane
| Fri, 13 Apr 2007 13:48:42 EST |
| I do not believe 6 months across the board is reasonable. What about the people that have not experienced payment shock but instead overstated their income and have not made any payments to date. Should they be allowed to live rent free for another 6 months because they over extended themselves or falsified their loan application.
Each instance should be reviewed on a loan by loan basis, guiedlines for true hardship defined and no free rides. |
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| Above Posted By:
Anonymous
| Fri, 13 Apr 2007 13:11:20 EST |
| WOW, When ever I read somewhere that a lender is willing to work with a homeowner I call total BS. In 100 percent of the cases where my clients have had trouble with lenders absolutely none of them have attempted to work with the owners in anyway to keep from foreclosure other that saying we want it all now and BTW tack another 7 or 8 grand for fees on to what youre already behind on. The lenders make more money in write offs and insurance claims by taking your home than by working with you. |
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| Above Posted By:
dave
| Fri, 13 Apr 2007 12:49:57 EST |
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