Subprime Disaster Continues To Unfold

RE:Subprime Disaster Continues To Unfold

Joel Dozal — Sun, 26 Aug 2007 11:00:00 GMT

I'm a mortgage broker that works hard and have been in the biz for 5 years and it is our responsibility to protect the public just as they do in real estate. Unfortunately, federal aw well as state laws are too laxed and anyone and everyone along with their cousins, nieces and dogs were becoming Mortage PRO's... Sad.

RE:Subprime Disaster Continues To Unfold

Tom — Mon, 20 Aug 2007 11:00:00 GMT

I'm a mortgage broker who like any other broker sold the programs available to them. Some of this programs were very aggresive, in some cases didn't make much sense. However, we as mortgage brokers can't denide a customer of a loan base in our personal opinion. We could only advice them of what we think, at the end the customers make thier own decisions. Negative arm loans make no sense at 100% or even at 90%. We should get prepare for a very high volume of forclosure in the nest two years.

RE:Subprime Disaster Continues To Unfold

KjFine — Thu, 16 Aug 2007 11:00:00 GMT

I work, well, as of today, worked for a wholesale lender, and was a broker for 5 years. No matter what anyone says, the blame rests on all of us. The lenders for their lax guidelines, the brokers for overstating income, and the borrowers for not making their payments. Unfortunately, it is the people who are trying to make an honest buck that get hurt the most. Now, I am worried that I won't be able to feed my kids. For someone to say that one group is entirely responsible is asinine.

RE:Subprime Disaster Continues To Unfold

Ron — Mon, 13 Aug 2007 11:00:00 GMT

I've been in Wholesale Lending for 10 years. Brokers give us the info for their borrowers. We give the broker ALL the loan options the borrower qualifies for. In the vast majority of cases the rate and term the borrower get's in the end was the best they could QUALIFY for. The credit score, % of financing they needed, the loan $ and most of all...whether they could prove their income or not is what dictated their final deal. True, some brokers can and do abuse the system...but most don't.

RE:Subprime Disaster Continues To Unfold

Stehanie Argo-Ray — Wed, 08 Aug 2007 11:00:00 GMT

How many times do I have to go through this again? I have been in the mortgage loan business for almost 30 years. 7 years ago, I said t his is going to blow up in their faces. Property values go up for a while - but as we saw in the 80's and the early 90's they also go down. It is a gamble they took, and the risk is higher then vegas.It is not just lenders - realtors - brokers - builders - it is everyone trying to make a buck. What happened to making loans the common sense way?

RE:Subprime Disaster Continues To Unfold

Jennifer — Wed, 18 Jul 2007 11:00:00 GMT

...greed from both sides...I worked for a home builder when this craziness started. I watched as they would say on their pricing sheets "price increase of $20K after the next 2 sales, then $20 k more it prompted me to move up from my townhome to a single family. They took advantage of the unbelievably low rates, creative financing, the "need" of everyone to keep up with the Jones'. I think McMansions will be less and less appealing, especially as the cost to heat/ cool them increases as well!

RE:Subprime Disaster Continues To Unfold

Chuck Norris — Tue, 17 Jul 2007 11:00:00 GMT

How can one blame the broker when the broker is given access to bank programs and it is his job to qualify consumers based on the products they are given. If a bank allows 60% DTI's, and the broker gets a client who has 60% DTI's on an arm but 62% DTI on their fixed loan. What would anyone do....give the client the arm because that is the only product they can qualify for...It is a no brainer. Lenders should go out of business due to their laxed guidelines..Brokers sell what is given to them.

RE:Subprime Disaster Continues To Unfold

Robert Dawson — Mon, 16 Jul 2007 11:00:00 GMT

The people who cause this are not realtors or mortgage brokers, we do not make the rules and did not come up with these ridculous loan programs. Its your government and the financial institutions who made billions off these programs. Its the banks who should correct the problem and how bout asking the government who new these programs were going on yet did nothing but collect tens of billions of dollars in taxes.

RE:Subprime Disaster Continues To Unfold

Cathy — Mon, 16 Jul 2007 11:00:00 GMT

I am unemployed along with a couple hundred other people due to the mortgage fraud and over zealous lending of Alliance Bancorp. They closed their doors on Friday with no notice or severance for the loyal employees who remained with them in spite of the problems. I only hope the FBI and other law enforcement agencies will prosecute those people that have already been identified as part of one of the fraud schemes that wracked our company.

RE:Subprime Disaster Continues To Unfold

Donna Robinson — Sat, 14 Jul 2007 11:00:00 GMT

Fred is right. Much more pain to come. I have been watching this market develop since October of 2005. We are just now heading towards seeing the real magnitude of the problem. NAR is still out of touch with the reality - agents (such as myself) will do well to adapt to the best ways to make a living in a down market.

RE:Subprime Disaster Continues To Unfold

Sandra — Fri, 13 Jul 2007 11:00:00 GMT

The worst is yet to come. Not only are Home Depot and retailers like them having sales declines, but so are furniture stores, title companies, electricians, plumbers and the list goes on and on. Slower housing demand affects the entire economy and tricals down the line. We are looking at a good 5 years for things to turn around. But how many people can lose money for that long? People in the mortgage industry are going out of business left and right. Other trades are likely to follow suit.

RE:Subprime Disaster Continues To Unfold

Marilyn Morrin — Fri, 13 Jul 2007 11:00:00 GMT

Subprime mortgage meltdown. $1 TRILLION in loans to "reset" interest rates between 9/07 - 12/08. What NO ONE IS TALKING about is the lender "RECAST" of the neg am/OptionARM loans - - it takes an average of 30 months of minimum payments for the principle amount to increase to 110% of the loan, at which time the lender "recasts" the loan and the borrower, who had an original loan of $600K, now has 110%, or $660K, and the house is worth $560K. Foreclosure is his only relief. This fiasco is ahead

RE:Subprime Disaster Continues To Unfold

Chuck — Fri, 13 Jul 2007 11:00:00 GMT

If every state would develop or adopt a test equal to NAMB's certification standards, or as challenging as the CPA exam, a lot of problems could be solved. While everyone has their finger in the air don't forget to point it to the states whose legislators have allowed "just hang a shingle" mortgage shops to open up without qualification or license. Yet, some of them will be first in line to sue a mortgage company when their first line of defense to protect the consumer was themselves.

RE:Subprime Disaster Continues To Unfold

Chuck — Fri, 13 Jul 2007 11:00:00 GMT

I've been in the mortgage business for 16 years and see a lot of fingerpointing to "mortgage brokers" doing misdeeds. Has it ever occurred to anyone that the major builders have been walking all over RESPA for years, apparently with HUD looking the other way, using near extortion tactics to entice the buyer to use their mortgage company (or lose the upgrades). They may have had market rates, but you can bet the ysp was in the price of the house. Suppose?

RE:Subprime Disaster Continues To Unfold

Rockinon — Fri, 13 Jul 2007 11:00:00 GMT

As I have continually stated, this is an industry problem let the industry who caused it fix it, developers, Sales Agents, Brokers, lenders, apprasial industry and most importantly the builders. The problem we are in today is due to pure Greed, nothing more nor less just plain Greed..........no tax payer dollars, no tax dollars and especially no bail out from any governmental agency should even be entertained.....The Industry got themselves in this mess, let them fix it.