Banking and Housing Giants Testify About Subprime Solutions

RE:Banking and Housing Giants Testify About Subprime Solutions

Bobby — Sun, 19 Aug 2007 11:00:00 GMT

The truth is Americans are the "greedy" ones in this mess. We want it all and we want it now. I'll worry about tomorrow...tomorrow. Even when we know it's not a good decision, we will do it. Why do we have so much credit card debt? Instant gratification is America! Spend one day watching tv, listening to radio, reading the paper. We are getting sold something we "need" every hour of every day. And we believe it. If you want to blame, blame yourself and your parents.

RE:Banking and Housing Giants Testify About Subprime Solutions

Get real — Fri, 17 Aug 2007 11:00:00 GMT

I'm tired of everyone trying to blame banks, brokers, etc. Every borrower is shown at closing what their payment will be and what information on thier loan. Our weakness as a society, lack of self control, and addiction to "instant gratification" is what has caused this mess. Lets get real and quit blaming someone else for our own mistakes. YOU know what your income and expenses are. YOU KNOW YOU WERE GETTING IN OVER YOUR HEAD. BORROWERS TAKE RESPONSIBILITY for your own actions!

RE:Banking and Housing Giants Testify About Subprime Solutions

Lee J. DeMeo — Thu, 05 Jul 2007 11:00:00 GMT

1)The Option Arm is a loan product, like any other that has a proper use (leverageing for wealth building is one of them- 100% first time homebuyers with 580 credit is NOT 2) The Mortage broker (like me) has a fiduciary responsibility to the borrower - to do what's best for them-many do, many do not (unethical) or don't know how (new or incompetent) 3) The BORRROWER has a responsibility to become educated 4)The loan officer must care more about his borrowers welfare than he does his commission.

RE:Banking and Housing Giants Testify About Subprime Solutions

Paula Rush — Thu, 05 Jul 2007 11:00:00 GMT

If anyone took the time to read the lawsuits pending and Federal actions in courts across this Nation they would understand that the borrower, for the most part, was just a pawn in the game of greed and corruption. Lenders, brokers and title companies, created a myriad of techniques to coerce and decieve. They used affiliates and sham companies to funnel kickbacks to each other. The POA loans will send shockwaves through this industry and Wall Street the likes of which we have never seen.

RE:Banking and Housing Giants Testify About Subprime Solutions

marilyn — Mon, 25 Jun 2007 11:00:00 GMT

accruing unpaid interest and principal that is being adde to the loan balance every month. At 110% the lender recasts the loan and instead of having a $ 600K loan, with payments at 1.25%, they now have a $660K loan, with fully amortized payments at 6% if they are lucky AND a house with a falling value of $560K. If they can't afford the nearly quadrupled monthly payment, foreclosure is their only option.

RE:Banking and Housing Giants Testify About Subprime Solutions

marilyn — Mon, 25 Jun 2007 11:00:00 GMT

$600 BILLION in loans to reset in the next 12 months at a time when the fixed is over 6% and values are declining 10 - 15% in Southern California. What no one is addressing are the Option ARM homeowners, who, at about 30 - 36 months, have their loan "recast" by the lender, meaning a nice letter arrives, informing the homeowner that the $600K loan they took out in 2005 and only paid the minimum start rate paymet of 1.25%,

RE:Banking and Housing Giants Testify About Subprime Solutions

marilyn — Mon, 25 Jun 2007 11:00:00 GMT

Most Option ARMS started in 2005, so 30 months won't hit until end of 2007 - - that is when the market will really melt. We ain't seen nothing yet, baby.

RE:Banking and Housing Giants Testify About Subprime Solutions

Donna Robinson — Sat, 23 Jun 2007 11:00:00 GMT

I am an investor, a real estate agent, and regularly consult with investors who are in trouble with option ARMs, 80/20 piggybacks, and so forth. I have been counseling investors who are delinquent. Most did not understand the financial effects of their loans, in terms of their effect on the profitability. In other words, they signed for loans that were not going to yield a profitable cash flow, but did not realize it until it was too late. Ignorance is not bliss in the RE business.

RE:Banking and Housing Giants Testify About Subprime Solutions

TenHen — Thu, 21 Jun 2007 11:00:00 GMT

I very much agree with Bryan Courtney. People have gone through some rough times and the thought of owning their own home and a new start is normal. I know of only one mortgage company that I have delt with in the past that are the very finest and honest people. The others are getting the recompense of their greed and it is going to change the whole "mortgage broker" industry. Just look how many mortgage brokers(so called) have jumped off the band wagon .

RE:Banking and Housing Giants Testify About Subprime Solutions

anonymous — Tue, 19 Jun 2007 11:00:00 GMT

In response to Bryan. You are clueless about the mortgage industry. Majority of consumers have used their homes as ATMs, and now want to blame everyone but themselves for getting further in debt, upside down on their home, or in a negative amortizing loan or arm. If you want a fixed rate loan, your should demand it. If you are looking to blame someone, dont blame greed, or the mortgage industry. Go all the way back to elemetary school on up where personal finance/credit is not taught to us.

RE:Banking and Housing Giants Testify About Subprime Solutions

cjh — Thu, 14 Jun 2007 11:00:00 GMT

In asnwer to Bryan Courtney, the borrower, when duped by a lender that doesn't post a timely payment doesn't have a prayer in court. At least not in Colorado. The judiciary have all decided in advance that the corporate entity is in the right even so much so as to not recognize evidence to the conrtary. I unfortunately know because we were foreclosed on. Our reciepts and canceled checks meant nothing to the magistrate in charge of the court.

RE:Banking and Housing Giants Testify About Subprime Solutions

Bryan Courtney — Thu, 03 May 2007 11:00:00 GMT

Todays mortgage business is no different than the car business. I get a trade in and offer 2K and then sell it to you for 8K and at a rate of 21%. No one is screaming about that. I think that individuals who are applying for a mortgage should be required to attend a face to face training by state sponsored personnel. This will allow a forum where each borrower can be educated to the good and the bad of their loan choice. However, we all, including the borrower, have to take responsibility.

RE:Banking and Housing Giants Testify About Subprime Solutions

Danielle Von Tungeln — Thu, 03 May 2007 11:00:00 GMT

The reason is greed. Brokers profitting from the high fees. Bankers who sell the loans in blocks to investors, who know the higher risk, the bigger the payoff. Anyone seeking a mortgage was steered to high rates and fees. The loans going into foreclosure now, were written when the Prime rate was as low as 4.9! Is that what you pay? Stop trying to rationalise the results of corruption and fraud. Regulations on the books would have prevented this "chaos" if somebone thought to enforce them!

RE:Banking and Housing Giants Testify About Subprime Solutions

Cyndi — Wed, 02 May 2007 11:00:00 GMT

As for mortgage brokers having to redisclose 48 hours prior to closing. By law if any fees, rates, loan amounts or loan program changes occur, the borrower must be notified in writing whether a broker or a banker. Brokers have to follow the same rules that banks have to, yet only mortgage brokers are required to disclose the yield spread premium (payment received from the lender) while banks do not. Predatory brokers, lenders & greedy investors are to blame for this mess.

RE:Banking and Housing Giants Testify About Subprime Solutions

Cyndi — Wed, 02 May 2007 11:00:00 GMT

There are many things that need to be changed in the lending industry, but all those involved, mortgage brokers, bankers and lenders should have to follow the same guidelines. If there were an industry standard there would be less predatory lending and more consumer protection. A higher level of education and a certification to offer hybrid loan programs should be required.