| In the last 4 months I have been laid off and no I won't ever work for GMAC again! MI has #1 in foreclosures and we're also #1 in Unemployment (not just in the D!), the entire state is in turmoil due to foreclosure market. GMAC & other lenders need to take acct for this mess as well as govt. I feel bad for anyone who lost their home I know what they're going thru & no luck finding a new job in MI either. I hope we all get to move on to better things in our lives and learn from the past. |
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| Above Posted By:
Anonymous
| Thu, 27 Sep 2007 09:33:10 EST |
| ...Make loans to people blindly in the 'race' to make up most when market is upbeat. Then when things go wrong...start the blaming game. The whole process of funding banks/FIs to cap the damage is to prevent slump in the US economy (and whole world) so that these very institutions keep making profits by many many financial tools. |
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| Above Posted By:
anonymous
| Mon, 13 Aug 2007 06:46:38 EST |
| Part of the problem is that some Borrowers never had any "skin in the game". They had nothing in it & nothing to lose. They were fortunate to get a home with no money down & avg. credit. They were advised to work on further cleaning up their credit & instead fell back into their same old bad habits thereby limiting their options. Human natures says that you have to have something lose so that you can really appreciate what you have. |
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| Above Posted By:
Laura
| Mon, 18 Jun 2007 09:44:32 EST |
| I'm with Eric who said, that loan mgrs. should be paid by salary only.This would keep the intregrity in the loan.This may keep them from making loans that shouldn't be made. You can't blame the client for wanting the home dream.They don't hold the authority to say your loan has been approved.Take the commission away from the loan mgr.My daughter gets a big salary and a commission check ea. time her numbers go up. So who is at fault the person applied for the loan or the person with the magic pen. |
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| Above Posted By:
Thomas
| Fri, 15 Jun 2007 13:15:06 EST |
| In summary, most of this could be solved overnight if people would stop being so greedy, use common sense, and not live beyond their means...period. the banks need to get their heads out of their a**es, and simply accept a little less profit, and individuals need to stop reacting to media hype - in either direction. Houses will always be needed, in demand and somewhere to live. They are NOT instant millions, they take time to make money, like any other business. |
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| Above Posted By:
RE Investor
| Wed, 13 Jun 2007 15:00:02 EST |
| 3. People who don't need to sell - SHOULD NOT! What is happening is the reverse of the bubble. There are people that I have seen here in Phoenix, that have plenty of money in the house, no subprime mortgage, and a paying tenant - with cashflow, that sell because they are scared of what the media says. They dump at a loss, hurting everyone else, including themselves, and for no reason other than hype... It is great for me because I buy at a discount. Rent out - make money but hurts the neighbors. |
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| Above Posted By:
RE Investor
| Wed, 13 Jun 2007 14:57:05 EST |
| 2. Remove the prepayment penalties! What gets homeowners in trouble is that they could refinance in to a fixed rate, but can't because if they do it adds so much to the principal you no longer qualify for the new loan based on LTV. It did not matter when prices were going up weekly, but now someone that bought responsibly still might have trouble with a refi. Again the investor would not make the extra money of the prepay but at least would walk with his initial principal and some interest |
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| Above Posted By:
RE Investor
| Wed, 13 Jun 2007 14:53:15 EST |
| It seems to be this whole mess could be solved in a few simple steps.
1. If the borrower was a prime borrower put in to a subprime loan the simplest way to stop foreclosure is to simply change the terms of the loan. Why is it so hard for people in banking to realize that it makes more sense to keep a paying borrower where he is at, get a return on their investment and avoid a costly foreclosure. Sure the investor makes a little less than 10% when it resets but 10% is ridiculous anyway. |
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| Above Posted By:
RE Investor
| Wed, 13 Jun 2007 14:49:19 EST |
| I have been a loan officer/originator for over 20 years. I was never trained to falsify loan documents nor to give bad advise to my clients to get the deals closed. I resent the fact that so many inexperienced brokers and lenders have been allowed to do business in this manner. I consider myself a Financial Advisor not a "hungry dog" just in it to make a buck! |
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| Above Posted By:
HMB
| Wed, 6 Jun 2007 10:57:15 EST |
| Homeowner's should be held accountable for their actions instead of everyone blaming it on brokers. We broker's tell our clients not to over extend themselves, but they don't listen. I have a client now whom I told in July of 05 not to buy this house with a 55% DTI. BY Jan of 06 she needed to get cash and did a 100% c/o loan and walked away with no debt but an extremely high rate/payment. By May of 07 she racked up so much debt her scores dropped below 500 and she can no longer qualify for loan. |
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| Above Posted By:
Sandra
| Tue, 5 Jun 2007 08:50:58 EST |
| The S&L scandal is paltry in scope compared to this. Many conscientious professionals have been predicting this situation for 5 or 6 years now. Some of us are not surprised. Consumers need to do their homework. Brokers and lenders need to be licensed and held accountable for the loans they generate instead of selling to the secondary mkt asap. Remove commission based origination. Take away the incentive so this doesn't happen again. |
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| Above Posted By:
appraiser
| Sun, 27 May 2007 13:07:55 EST |
| Borrowers are many times just as guilty. They don't care whether they qualify for a loan. They just want their money and tomorrow be damned. Now they're screaming for a bailout. I have sympathy for those who got suckered in by shifty salesmen with their pet "hit my value" appraisers. "Help this nice guy out" I hear all the time. "He's in a tough spot and needs to pull some equity". Sorry...I won't help someone into foreclosure so you can skate off with your commission. |
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| Above Posted By:
appraiser
| Sun, 27 May 2007 13:01:07 EST |
| Perhaps if loan origination wasn't a commision based sales position, the incentive to put people into loans that aren't right for them would go away. You wouldn't believe some of the things I've seen from brokers and lenders trying to "get the deal closed". Falsifying income, pressuring appraisers to inflate value, changing completed appraisals, the list is extensive and the offenders constitute a LARGE percentage of the industry. Many are trained that way and don't even know it's illegal! |
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| Above Posted By:
appraiser
| Sun, 27 May 2007 12:55:23 EST |
| I spent thirty years in the "business". For 28 of those years we used a "conservative" approach to lending. After H** took over B******** the whole game plan changed. It was grow or else. Growth for growth's sake. The stockholders got sucked in by "cooked' numbers. Delinquency was manipulated along the way.
H**** should have exercised better "due-diligence". |
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| Above Posted By:
Ron
| Tue, 22 May 2007 19:35:01 EST |
| I work for a counseling agency that helps to "bail out" some of these people in ARMs. For the most part, i can say that the majority of clients calling in are totally irresponsible, got more house than they could chew, and are now crying predatory lending. It makes me sick. People do need to be held accountable for their own mistakes. Let the Buyer Beware isn't that the old adage? |
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| Above Posted By:
Anonymous
| Thu, 10 May 2007 03:49:10 EST |
| What is the point of bailing out these people. I can understand it if it was for the families who have all lost their industry jobs, but most foreclosures are people who wanted more than they could afford. A bail out will just keep housing at an unaffordable price for most people. Foreclosures will cause the prices of homes to go down so that responsible buyers who pay their bills can once again afford to own a home. |
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| Above Posted By:
Jodi
| Wed, 9 May 2007 12:46:50 EST |
| This is so unfortunate for every-one, the brokers, lenders, real-estate agents, public, etc. the lenders are all crying the blues on sub-prime, they have tightend the guidelines and raised the rates across the board. Now the market is stagnet and there is not enough good business or new business coming in to make any substantial off set to the fore-closures happening. The market needs to be motivated and people need to buy houses and homes to keep this country moving. The big guys need to change |
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| Above Posted By:
ANY-ONE
| Wed, 9 May 2007 12:45:13 EST |
| I think that anyone who thinks that bailing out a citizen of the U.S. is theft should be robbed of their rights too! When a lender purposely sets you up to fail to the tune of 2.95 million families nationwide, I think that we also need to be looking at who it is that's setting us up to fail and why. Could it be that the banks want us to fail economically so that we're on a more even keel with 3rd world countries where they can thrive? Banks only deserve what's fair business practice! |
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| Above Posted By:
cjh
| Tue, 8 May 2007 17:59:50 EST |
| Well... maybe its offical! I myself personally, have written to Mr. Schumer and explained in detail, what was needed at this time, in subprime. With 25 years plus, in the industry our group could have "saved" tax payers large sums of money, vs: to the band-aid approach in which is being talked about. I guess when the only way is the "politics as usual" and the "band-aid" which might be offered, I think its quite sad as Americans and as politicans in our time, that thinking out of the box is bad |
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| Above Posted By:
Anonymous
| Tue, 8 May 2007 09:17:00 EST |
| Bottom line is that unless these borrowers were developmentally disabled, victims of identity theft or otherwise deemed unable to determine the difference between right or wrong or the value of a dollar as opposed to the value of a dime there really is no excuse for "over buying" or "over borrowering" other than flat out greed and/or the human nature of wanting bigger and better than the next guy. Maybe losing the property would be, in a way, the best "counseling" available? A life lesson |
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| Above Posted By:
Julie
| Tue, 8 May 2007 08:37:10 EST |
| I cannot believe Congress is about to spend taxpayers money to bail out the subprime lenders! It is theft! |
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| Above Posted By:
Ron
| Sun, 6 May 2007 18:57:11 EST |
| As a former deliquent loan counselor who had to review loans and servicing BEFORE recommending foreclosure, I saw a whole lot of loans that never should have been written or when the mortgage terms basically made foreclosure prevention next to impossible. The best way to PREVENT foreclosure is to follow the actual LAWS, not providing bailouts. The best foreclosure prevention is educating the borrower BEFORE they get the loan and writing good loans. |
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| Above Posted By:
Al
| Sat, 5 May 2007 14:40:33 EST |
| People like Senator Charles Schumer (D-NY), chairman of the Senate's Housing Subcommittee, Are to blame for the financial state of America today. Throwing 300M of tax payers money to "Non-Profits" NUTS!! Banks have made trillions of dollars in profit and the tax payer needs to chip in when the market overall is robust?
Thanks a lot Charles Schumer, Big Fat Government. |
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| Above Posted By:
Eric
| Fri, 4 May 2007 18:07:24 EST |
| $300 million will not solve anything. Two newspaper items today. A familly with $22,000 in HH Income was loaned $240K (100% LTV) to by a home with a teasered option ARM. NO amount of aid will allow them to repay the loan. Another household with $90,000 in income was lent $750k (100% LTV) to buy (these are construction loans) three "investment" properties that have gone down in value. Mortgage broker in 1st case should be held accountable. Borrower in 2nd case should have to take the loss. |
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| Above Posted By:
DOC
| Fri, 4 May 2007 11:19:33 EST |
| How about correction on the home prices So called "appreciation" which has been so unreal and with no actual realistic basis for such an increase. Instead of having taxpayers again pay for such unreal loans for such an unreal home prices, lets sell the homes as what they really worth -25% to -50% and get the market back to reality. Let the damage be placed where it belongs not the taxpayers again. |
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| Above Posted By:
Al
| Fri, 4 May 2007 09:34:09 EST |
| What about those of us that won't go to foreclosure but are sacrificing car upgrades to avoid foreclosure? Do you think Schumer will give me some money for a car or do I need to go to foreclosure first? Idiots! |
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| Above Posted By:
Mike
| Fri, 4 May 2007 07:58:25 EST |
| This is a joke, the lenders screwed up let them take the fall. Where is all the money I lost thru the years on bad investments. I'm tired of my tax money bailing idiots out of trouble. No one helped me when I needed it. |
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| Above Posted By:
mark
| Thu, 3 May 2007 16:30:28 EST |
| Lending abuses? When are we going to ask consumers to be responsible? Foreclosure is not a phenomena of the current housing crisis. It's easy to fall prey to feeling sorry for the victim. It's not to say there may not have been some abusive tactics, but what percentage are we talking? 1, 5 or 20% being abused? But more importantly, if legislation is going to save the day for the folks that are in foreclosure now, then what about the consumers that lost their homes last yr? Don't they matter? |
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| Above Posted By:
Guy Bini
| Thu, 3 May 2007 14:18:00 EST |
| Foreclosure Intervention Counseling is key! Now that the damage is done (subprime lending, uneducated/naive homeowners) it is up to the lending institutions to put some practical and sustainable counseling tactics in place. |
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| Above Posted By:
kay
| Thu, 3 May 2007 14:08:14 EST |
| GMAC's loss is a little exaggerated given that the bulk of those foreclosures are in the Detroit area. Surprisingly, that's where GM layed off so many employees.
In regards to the foreclosures due to poor lending practices. Everything is in black and white twice before the borrower closes the loan. They know what they're getting - the "poor me" attitude applies to a very small number of people. And the brokers aren't the worst - It's the Ameriquests and Home 123's of the world. |
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| Above Posted By:
Scott N
| Thu, 3 May 2007 13:30:17 EST |
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