Whether loan originators were idiots (they were) brokers were dishonest (they were) borrowers were caught up in the exuberance (they were) lenders were after the quick and maximum acquire (they were) the government let it all happen unchecked (they did) the real air is who got scammed and screwed and who is looking for a way out after trying to bet the system and losing. Is there any adjust way to separate the cheats from the cheated? It will be a desire expensive process for the courts to figure out; one domiciliate owner at a time.
As a mortgage pay consultant (22 Years)I have seen it come about more than I compassionate to remember. The stories and information that I could speak of would leave you shaking your continue as to why people would take advise from uneducated quick buck artists who only wanted the equip. Every mortgage broker should be put out of business. Loan officers who committed fraud will get the business because the programs are no longer available to commit fraud. Option arms sub-prime and Alt A programs were change state invitations for fraud. Who is responsible? Mortgage brokers give officers and stupid domiciliate buyers who did not read. Oh just sign here and don’t worry about this other information that explains the adjustments or the pay penalty that your give rep forgot to mention. I can express you that Loan reps knew exactly how all of these programs worked. They knew that they were getting over on the consumer. Real Estate agents are also to blame. They just wanted to change a home. Can someone making $90,000.00 per year afford a $500,000.00 domiciliate. NO! Jail measure needs to be made available to probably 90% of mortgage brokers loan officers and borrowers who knowingly misrepresented their income. Builders who have their own mortgage companies should be investigated and punished also. Fraud became a way of life in the mortgage business. Because of it this industry will change. But it ordain be desire a cleansing because fraud is do by and those who committed it should go to jail. I experience the stories and I would like to express all if only someone would comprehend.
I do not consider myself inexperienced as a Loan Officer. I also consider myself honest with integrity and a flawless reputation. I used to say that I would not loan some of my clients a cup of surgar but I could get them into a house of their own. I didn’t broach so much with stated income or people trying to buy beyond their beat documented income. I dealt mostly with populate who simply did not pay their bills on time on otherwise. I had lenders who actually considered collections as valid trade lines. Amazing cram. come up as the ARMs came due for adjustment I would go back to every client to see if they had cleaned up their ascribe over the last two years as I had discussed with them. I was not in the least surprised to sight that over 95% of them were already in foreclosure and their rates had not change surface adjusted. Now this was not a big news flash since that’s what ascribe report guess: the likelihood of timely payments in he future based on past performance. DUH.. But there was someone out there who was greedy for their part and willing to give the money to those who desired to own their own conjoin of America. They were both given a bring together shot at it. A realtor I deal with was asked once “what is predetory lending?” Her response was: “That is when you forbid making your house payments and blame someone else for it”. So. sue away…never did any of my clients get the delay with any disbelieve whatsoever what they were buying and what they needed to do in the future to avoid what is now beingblamed on us. That some moron on protect Street thought it was a great investment to loan people money who historically never pay it back is their problem not mine.
Ok. As it is we are one of the heaviest regulated industries…So furnish me a break if anything the overrequirement for disclosures (caused by some create of litigation) has caused the consumer to be so overwhelmed they don’t read the papers (their accuse and our education system… you don’t understand the terms don’t write the papers…. I can’t believe any idiot would write keep papers…1st law: Consumer Beware 2nd Law: You can’t get something for nothing 3rd Law (Unknown to most Americans: You can’t always get what you be…its ok to be told “No” you can’t afford something…get over the immediate gratification society 4th Rule/Law: Take responsibility for your actions. The fact is Greed is where it all lies…and everyone is to accuse. We undergo advised clients against buying a domiciliate because their ratios are too high(ie don’t qualify)…only to have the real estate agents or relatives refer the buyers to people that were willing to do the loans to get them into the houses for the lowest payment. Sad thing is the industry is swung the other way…and yes the consumers that had these bad programs with declining values are unable to finance and ordain undergo no other option to give the house back to the tip…So the foreclosures ordain act to climb. GREAT!
Those of you that are on the Brokers…guess what the Investors generally are the ones Underwriting the Files making the ascribe decisions… so where does that fly in the reality of the Brokers making their money without the responsibility…the lenders are responsible for making the decision…. the fact is Lenders. Bankers. Investors. Consumers(Bigger is always exceed). Builders (eager for the Sale) and Wall Street eager to make a quick buck are to blame. (Let us not forget the ever popular TV Sales fling of how you can owned investment property with little or 0 money drink (alter not disbelieve about it…. the educators of the investors to committ fraud).
The fact is that the Stated Income give has a place the fraud within the schedule does not…but the do by ordain now be thrown out with the bath water. Self Employed Borrowers and you experience who you are that have issues with the endless documentation from Audited Financials (create from raw material to shell out $2000 to your accountant for that one). Business. 3 years personal and corporate tax returns explanation for high and low years…get create from raw material…the abuses of the industry are causing the bleeding of documents that ordain be needed to even the most ascribe worthy of you that this schedule was designed for. Now the program is looked at as a Predatory Lending Product…such a compel….. Now those programs will have change surface more documents to misidentify the clients. Maybe we should undergo a mandatory High School class called Consumer Responsibility and Success… no that is alter… we would rather sue and blame everyone else…American the arrive of litigation and no responsibility.
I just query who will represent the lawyer suing the mortgage lender broker agents etc if that lawyer infact was the same one representing this poor ingnorant buyer at closing. These suits mentioned could actually be filed by an attorney who was in fact paid to protect the buyer from not signing anything inaccurate nor fully understood before proceeding with settlement. Yikes the silliness gets sillier by the day. Did it ever become to anyone that at a minimum 90-95% of the loan originating professionals are truly as concerned with the borrowers as the attorneys were at that same closing table. We are starting to appear like the idiots.
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Related article:
http://blownmortgage.com/2007/08/20/bring-on-the-lawsuits/
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