GSE Attempts To Help Mortgage Market Squashed

RE:GSE Attempts To Help Mortgage Market Squashed

TrueRates — Tue, 29 Apr 2008 11:00:00 GMT

Here we are about 7 months later. Fingers started out pointing in just about every direction except where the responsibilty lay. Now that the smoke is beginning to clear, just about everyone seems to agree that the major portion of the blame is split between Mr. Greenspan's Fed and the credit rating agencies, including Standard and Poors. They provided the bait that led greedy borrowers down the primrose path. The shame of it is that instead of the greedy investors, borrowers and credit rating agencies taking a hit over this mess, the government instead chooses to bail out the very people that caused the problem and allows the Fed to depart from its mandate of low inflation and maximum employment by again lowering interest rates in order to prop up the stock market. Where the hell is the Justice department in all of this?

RE:GSE Attempts To Help Mortgage Market Squashed

TrueRates — Mon, 10 Sep 2007 11:00:00 GMT

The problem does not rest with LO's or borrowers. The problem was initiated by the Fed when it dropped interest rates very low, trying to "fight inflation". That opened the door to the subprime sector. Then Standard & Poors purchase model, that was the model for secondary market investors, was not stringent enough to block out bad paper and the investors bought up everything with high interest rates. Put the responsibility where it belongs - with Mr. Greenspan's Fed.

RE:GSE Attempts To Help Mortgage Market Squashed

Carolyn — Wed, 22 Aug 2007 11:00:00 GMT

My husband and I are in the middle of this crap. I agree we take full responsiblity from the beginning we were eager to purchase a home and I have to say it was the LO he did not get us the best package possible. After realizing this I decide to go into the business to help folks like ourselves so that they won't end up in a ARM and have no way to refi because of slow payments. The bottom line is it was LO as well as us for the mess that we are in. You live and you learn.

RE:GSE Attempts To Help Mortgage Market Squashed

jose — Wed, 22 Aug 2007 11:00:00 GMT

Justin, it appears that everyone in the real estate industry and the lending institutions are shirking responsibility. Two years ago, I predicted a meltdown on the subprime lending. Therefore, I say shame on the real estate agents that pushed to sell overpriced properties to people that agents were most likely aware that they could not afford. And shame on the loan officers that acquiesced. In my view, everyone involved is guilty of fraud.

RE:GSE Attempts To Help Mortgage Market Squashed

Justin — Mon, 20 Aug 2007 11:00:00 GMT

Hey Jose... what about shame on the BORROWER for signing on the bottom line for that mortgage of $600k. No matter what the loan product, someone signed. How about some real personal responsibility here instead of blamming others. The borrowers who got themselves into these loans are just as much to blame as anyone. Now they're crying foul when they can't make their payments! They weren't upset when they chose that 4% ARM instead of going w/ the 6% fixed.

RE:GSE Attempts To Help Mortgage Market Squashed

underwriter Diane — Mon, 20 Aug 2007 11:00:00 GMT

Don't blame the underwriters. I was the head underwriter for a large builder owned mortgage company, we had to justify turning down a loan, and were usually told to sign it anyway. So many people think we can just deny a loan..during the last 5 years you could get fired for pending for more info or turning down a request. You need to place the blame a bit higher up on the ladder than us!

RE:GSE Attempts To Help Mortgage Market Squashed

Justin — Mon, 20 Aug 2007 11:00:00 GMT

The bottom line is that borrowers got greedy and tried to buy more of a home than they could afford.

RE:GSE Attempts To Help Mortgage Market Squashed

jose — Fri, 17 Aug 2007 11:00:00 GMT

Those individuals that were enticed into purchasing ridiculously priced properties simply because the money was available now want to sell for the same or higher price to avoid foreclosure.

RE:GSE Attempts To Help Mortgage Market Squashed

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

It is common sence that if borrower works at jack in the box that the borrower can not afford a $600,000.00 mortgage. Shame on LO and underwriters for pushing stated income loans through just to close a loan when the LO, broker and underwriter all know they can not afford the mortgage!

RE:GSE Attempts To Help Mortgage Market Squashed

Don Sharp — Thu, 16 Aug 2007 11:00:00 GMT

To protect the interest of investors, lenders, and borrowers the mortgage industry needs a federal order to ban all Alt-A foreclosures and require the lender to modify the loans to conforming standards, (e.g. write off accumulated negative amortization and penalties, restart the loans at a 5% fixed rate over 30 years, and authorize Fannie and Freddie to purchase the modifed loans). The Alt-A lenders are bankrupt and there's no gain in sinking homeownership.

RE:GSE Attempts To Help Mortgage Market Squashed

Rebecca — Sun, 12 Aug 2007 11:00:00 GMT

I also agree with Steve F, but.......as a Loan Officer, I have had to refinance many borrowers out of subprime products, when it was clear that they qualified for agencies products to begin with. So, even though the lender approved the loan, the loan officer needs to take responsibility if they did not put the borrower in the right product to begin with. It is our responsibility to do what is in the best interest of the client!!! Those who don't need to get out of the business.

RE:GSE Attempts To Help Mortgage Market Squashed

Rob the Real Estate Investor — Sat, 11 Aug 2007 11:00:00 GMT

What happens when millions can't sell their home or buy a new one? Panic. People wont buy new toasters or cars. Freddie and Fannie should be allowed to open their flood gates. Their loan limits allow for mansions in rural and studios in costal america. Indexing based on median house prices would be easy. Also do no cost refis for subprime borrowers who have acceptable payment histories and are now facing huge jumps in payments. This is a liquidity crisis. Without liquidity, the house is on fire.

RE:GSE Attempts To Help Mortgage Market Squashed

Freemarket Dave — Sat, 11 Aug 2007 11:00:00 GMT

Bush is right on this one! Let the private markets fix their own problems. Individuals, Banks and Investors must learn the hard way that they live in a free market economy. You just don't borrow or lend money without understanding the terms of the loan and the ability of it to be paid back over time. Individuals are lucky that the country allows for bankruptcy so they can start back at $0 and not -$500,000. Banks and Investors can also go back to $0 and start over.

RE:GSE Attempts To Help Mortgage Market Squashed

Dean — Sat, 11 Aug 2007 11:00:00 GMT

Steve F You hit the nail on the head !

RE:GSE Attempts To Help Mortgage Market Squashed

John — Fri, 10 Aug 2007 11:00:00 GMT

I really like the addition of the tag cloud feature...it really helps to organize similar content/articles.