Subprime Lending Takes Center Stage on Wall Street

RE:Subprime Lending Takes Center Stage on Wall Street

Anonymous — Fri, 20 Apr 2007 11:00:00 GMT

I work in the subprime qworld. My thoughts? We've become a nation of I want it all & I want it now brats. These brats also want an OUT if it doesn't go their way. They expect to be cut breaks time & again even when they default on their OWN terms. Todays borrowers need to take a step back in time.Wasn't so long ago that folks realized their first home didn't have to be enormous & bank breaking. No, the first home was considered a starter home..Autos didn't need to be bank breaking either!

RE:Subprime Lending Takes Center Stage on Wall Street

collector — Sun, 15 Apr 2007 11:00:00 GMT

I am a collector who has the great task of talking to the subprime customer. I will tell you the great majority of these people simply don't care if they keep there homes or not. They bought homes they couldn't afford and they knew it when they signed the papers. Almost all of them in collections are in adjustable rate mortgages and they haven't started adjusting yet! Just wait we haven't seen anything yet. Someone needs to remind people what responsibilty is IT"S NOT THE EASY ROAD.

RE:Subprime Lending Takes Center Stage on Wall Street

RB — Fri, 30 Mar 2007 11:00:00 GMT

As a broker I see borrowers that think they can afford a home that is outside the realm of sanity. But their first repsonse is " I know so and so and they make less than I do and they bought a house for twice as much with no money down" and actually got money back at closing for some repairs!!!!! I firmly tell them I dont do business like that !!!!

RE:Subprime Lending Takes Center Stage on Wall Street

arv — Thu, 29 Mar 2007 11:00:00 GMT

Being an insider in this business, I'd blame 50% of the fault on the BROKERS who make up the documents, and push the lenders. The other 25% on appraisers who over-inflate the value. 5% on borrowers who are trying to flip the homes, and the remaning 20% on underwriters who approve any file they fet.

RE:Subprime Lending Takes Center Stage on Wall Street

PFDK — Mon, 26 Mar 2007 11:00:00 GMT

Wow this freakin me out. Glad I'm hearing about this now. I'm a newly wed who along with my wife have worked are tails off to be completely debt free. We are a few months away with some savings and have been talking about buying our first home. The first for both of us. Sounds like I should start looking at foreclosures and make really low-ball offers at them.

RE:Subprime Lending Takes Center Stage on Wall Street

therealwayno — Tue, 20 Mar 2007 11:00:00 GMT

Borrowers get abused for not being financially educated. Lenders take advantage because they can. Borrowers often aren't honest with themselves and the lenders are usually less honest. Someone is getting hustled.

RE:Subprime Lending Takes Center Stage on Wall Street

George — Fri, 16 Mar 2007 11:00:00 GMT

Unfortunately, this is what we've come to as a society. Accountability for one's actions is as rare as a 3-dollar bill. I'm not in the mortgage industry but months ago, I could see where things were going. The borrower is the most to blame in this situation. Only the borrower has the ability to walk away. The problem is that people believe that it is their natural-born right to own a home. IT IS A PRIVELEGE!!! (continued)...

RE:Subprime Lending Takes Center Stage on Wall Street

Appraiser — Thu, 15 Mar 2007 11:00:00 GMT

As an appraiser, I see how some (most) mortgage brokers will only use appraisers that can get their value. I am not one of those appraisers. I explain right from the start that we use the best comparables available. For this reason, most of our business is with BANKS not Brokers. I suppose that blame can be spread out among many. IMO the brokers are most to blame.

RE:Subprime Lending Takes Center Stage on Wall Street

Ken — Wed, 14 Mar 2007 11:00:00 GMT

The current subprime scenario will surely be in college text books - Investment Strategy 101. Phase I - Wall Street sets the guidelines. Surprise...Lenders and Brokers go and get those loans like rats following a piper. PhaseII - WS suddenly announces "we'll only pay .90 on the dollar, not 1.02" Another surprise -lenders fold, employees lose their jobs, loans go at a loss and investors pick up a $100M or so on every Billion $ pool. I wish I had thought of it! The rich really do get richer!

RE:Subprime Lending Takes Center Stage on Wall Street

Anonymous — Tue, 13 Mar 2007 11:00:00 GMT

First time home buyer, Im 42 yrs old, just married, 820 FICO, no credit card dept,$120,000 combined anual income nice savings account and I have never felt so broke before in my life! While I watched everone run it up everyone I knew below us had no business in the game but seem to get into a loan and treated this as their own greedy cash machine. I guess the next 5 years are going to be very interesting.

RE:Subprime Lending Takes Center Stage on Wall Street

anonymous — Tue, 13 Mar 2007 11:00:00 GMT

I'm an underwriter in the mortgage business. I've seen consumers with high fico scores and little credit, consumers with credit trades reflecting a 10yr history of payments made on time, yet they did not qualify because they had too much credit, which gave them a low fico score. I have seen buyers declare bankruptcy and foreclosed upon and in 12 mos they had fico scores in the high 600 to 700 range. Are the scores manipulated? Where do I see banking? Guideline: If they qualify, approve.

RE:Subprime Lending Takes Center Stage on Wall Street

Mr BIG Realty — Tue, 13 Mar 2007 11:00:00 GMT

All of the major "players" are facing the same type of losses they are responsible for giving their misinformed clients. When greed is the basis of their system, the system throws up from over-eating. Their are mortgage products out their with counseling that puts the client first as far as their long term goals are in stabilizing communities. My advice is to get their information from at least 3 credible sources before making life changing financial decisions.

RE:Subprime Lending Takes Center Stage on Wall Street

uwaomah — Mon, 12 Mar 2007 11:00:00 GMT

Well, it is happening now, alot of foreclosures and short sale at whose detriment, the Lender. It is high time the lenders restructured their guidelines so that borrowers don't fall into their hussy hubby game. If possible, the lender should consider lowering the interest rates on those loans they see as high risk so that the borrower will fall in-make his/her payment accordingly instead of defaulting completely.

RE:Subprime Lending Takes Center Stage on Wall Street

Jason — Sun, 11 Mar 2007 12:00:00 GMT

Hmmm- Lets think about this. I can't refinance, there's no equity in the property, or the loan I need, can not be offered. I can't sale without bringing money to the closing. I don't want foreclosure. How to make it through this cyle? I need to make more money: 1) 2nd job? (America is not choosing according to lastest stats), 2) Find a couple roommates? (Perhaps, but most won't), 3) 0% credit card cash advance, delay until rates drop? (America, I bet you'll choose this one.)

RE:Subprime Lending Takes Center Stage on Wall Street

Fri, 09 Mar 2007 13:00:00 GMT

And the FBI should prosecute? Fidelity, Bravery, Integrity!? I suppose the runaway successes of McCarthyism to CoIntelPro to the fight against music piracy leave them aptly qualified, yes? NO! There are hardworking honest people AND criminals everywhere, but because I shared a little of the spoils I have a RESPONSIBILITY to also help carry the bag!