Subprime Market Mess Update

RE:Subprime Market Mess Update

Anonymous — Thu, 27 Sep 2007 11:00:00 GMT

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.

RE:Subprime Market Mess Update

anonymous — Mon, 13 Aug 2007 11:00:00 GMT

...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.

RE:Subprime Market Mess Update

Laura — Mon, 18 Jun 2007 11:00:00 GMT

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.

RE:Subprime Market Mess Update

Thomas — Fri, 15 Jun 2007 11:00:00 GMT

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.

RE:Subprime Market Mess Update

RE Investor — Wed, 13 Jun 2007 11:00:00 GMT

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.

RE:Subprime Market Mess Update

RE Investor — Wed, 13 Jun 2007 11:00:00 GMT

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.

RE:Subprime Market Mess Update

RE Investor — Wed, 13 Jun 2007 11:00:00 GMT

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.

RE:Subprime Market Mess Update

RE Investor — Wed, 13 Jun 2007 11:00:00 GMT

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

RE:Subprime Market Mess Update

HMB — Wed, 06 Jun 2007 11:00:00 GMT

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!

RE:Subprime Market Mess Update

Sandra — Tue, 05 Jun 2007 11:00:00 GMT

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.

RE:Subprime Market Mess Update

appraiser — Sun, 27 May 2007 11:00:00 GMT

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.

RE:Subprime Market Mess Update

appraiser — Sun, 27 May 2007 11:00:00 GMT

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.

RE:Subprime Market Mess Update

appraiser — Sun, 27 May 2007 11:00:00 GMT

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!

RE:Subprime Market Mess Update

Ron — Tue, 22 May 2007 11:00:00 GMT

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".

RE:Subprime Market Mess Update

Anonymous — Thu, 10 May 2007 11:00:00 GMT

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?