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Message
re: What Happen with the Sub-Prime Mortgage Crisis
Posted on 3/7/19 at 11:28 am to hawkeye007
Posted on 3/7/19 at 11:28 am to hawkeye007
Maybe where you are but not in Big Volume states
Plus Bank Statement/Stated is back and raging
You will be missing out if you dont get on board
Plus Bank Statement/Stated is back and raging
You will be missing out if you dont get on board
2
Posted on 3/7/19 at 11:42 am to SDVTiger
i like the lane i am in ! i checked the rates on a bank statement loan the other day for a friend and it was 7% on a 30yr . That's crazy high .
Posted on 3/7/19 at 11:46 am to hawkeye007
quote:
i like the lane i am in ! i checked the rates on a bank statement loan the other day for a friend and it was 7% on a 30yr . That's crazy high .
But there's plenty of bank-statement borrowers who would rather pay 7% than rent.
Posted on 3/7/19 at 11:46 am to hawkeye007
Sounds like a terrible bank
Rates are at 5.5
But what's wrong with a 7 when you havent been able to refi in 10yrs and need cash out or to payoff your debt
Sucks you cant sell that and missing out
Rates are at 5.5
But what's wrong with a 7 when you havent been able to refi in 10yrs and need cash out or to payoff your debt
Sucks you cant sell that and missing out
Posted on 3/7/19 at 11:51 am to SDVTiger
quote:
Plus Bank Statement/Stated is back and raging
Bank statement loans are problems but they have been around for many years before the subprime crisis, it was the Stated Income/Stated Asset loans and No Doc , Credit score only loans that created a problem, not to mention Option ARM's with 4 payment options like a .99% teaser rate and the interest only option that wreaked havoc in places like Vegas, AZ and FL.
Here's the thing, none of these loans were pushed by Fannie/ Freddie......it was all Wall Street and they were converting all of this to CDO's which were ten sold to teacher's pension funds, etc. No one was twisting Bear Stearns and Lehman to underwrite these things. Fannie and Freddie did not get into buying subprime crap until late in the game and only because they felt like they were missing out
Posted on 3/7/19 at 11:53 am to KiwiHead
quote:
not to mention Option ARM's with 4 payment options like a .99% teaser rate and the interest only option that wreaked havoc in places like Vegas, AZ and FL.
No they didnt lol. My clients have been cruising with an IO payment at 2% for almost 10yrs
Posted on 3/7/19 at 11:56 am to KiwiHead
quote:
4 payment options like a .99% teaser rate and the interest only option that wreaked havoc in places like Vegas, AZ and FL.
I remember those. My coworker got a guy a $2m house in Orange Beach for like $900 a month. He flipped it a year or two later so the borrower never got fricked. He actually made a shitload of money. Then all his buddies started calling us up but it didn't take long for those programs to get nixed.
This post was edited on 3/7/19 at 11:58 am
Posted on 3/7/19 at 11:56 am to Mo Jeaux
quote:
CDSs,
Credit Default Swaps had nothing to do with this. Now CDO's or Collateralized Debt Obligations , absolutely did.
Posted on 3/7/19 at 12:04 pm to SDVTiger
quote:
No they didnt lol. My clients have been cruising with an IO payment at 2% for almost 10yrs
1. They are stupid because you cannot bet that your home will continue to increase at a ate of 4-5% per annum.
2. All of that principal in tacked onto the back end and sooner or later it will reach 125% LTV then the bank shuts off the IO payment
3. The Option ARM's were given out like candy in Vegas and Florida, not to mention Arizona. People were buying their primary residences like they were speculators and the home builders went nuts and overbuilt thereby causing the prices to stagnate then fall. The empty neighborhoods of places like Tempe were testament to that.
Posted on 3/7/19 at 12:11 pm to KiwiHead
quote:
They are stupid because you cannot bet that your home will continue to increase at a ate of 4-5% per annum.
So you cant predict your value will drop by 50% either
quote:
All of that principal in tacked onto the back end and sooner or later it will reach 125% LTV then the bank shuts off the IO payment
No it does not. It shuts off the neg am payment
quote:
The Option ARM's were given out like candy in Vegas and Florida, not to mention Arizona. People were buying their primary residences like they were speculators and the home builders went nuts and overbuilt thereby causing the prices to stagnate then fall. The empty neighborhoods of places like Tempe were testament to that.
This had nothing to do with that loan
It's like you have no idea what you are talking about and just spouting off talking points
Posted on 3/7/19 at 12:22 pm to Tigahhs97
quote:
What Happen with the Sub-Prime Mortgage Crisis
"Everyone deserves to own a home" Maxine Waters
"This is a witch hunt" Maxine Waters
"Franklin Raines is doing a fine job" Maxine Waters
Our government pressured banks to get more aggressive and the rest is history...
"Republican tax cuts are the reason our economy went on the brink"
"Impeach 45"
"Attack anyone working for this administration and let them know they are not welcomed here anymore"
Maxine Waters....
Pretty much every single Black member of congress was lock and step with Maxine...
that's the root of too big to fail
This post was edited on 3/7/19 at 12:23 pm
Posted on 3/7/19 at 12:47 pm to SDVTiger
quote:
So you cant predict your value will drop by 50% either
Booms have busts
quote:
No it does not. It shuts off the neg am payment
You are right on that one, my bad. I was thinking along the lines of the .99 function
Still, the IO unction of a loan is petty damned stupid especially on a primary residence....rental and investment property is one thing.
quote:
It's like you have no idea what you are talking about and just spouting off talking points
I assure you, that you could not be further from the truth. I worked in securities law and represented a pension fund that was suspicious of the CDO's that the former fund manager had bought starting in late 2004. I can tell you about the scam of the trash tranches as we called them that were essentially buying their A+ rating from Moody's,S& P and Fitch, et al because they were insuring the CDO's through the monoline carriers like MBIA and Ambac to name a few. All of this stuff was backed by things like IO loans and Option ARM's and the 2/28 80/20 deals with a 30/15 second mortgage so as to escape the dreaded MI. Nice screw jobs on willing marks!!!!
I had binders and binders of underwriting guidelines from numerous lenders....BTW, we were the guys that helped take down TBW in Ocala and sent New Century's stock crashing in February of 2007 when we saw that they were misstating a lot of things on their quarterly reports.
I'd tell you a lot more but there is not enough time
Posted on 3/7/19 at 1:09 pm to ApexTiger
quote:
Our government pressured banks to get more aggressive and the rest is history..
That really did not cause the subprime problem...stop listening to Hannity and the fools at Fox. Wall Street saw an opportunity to make serious money working the subprime end. Fannie problems with Franklin Raines had more to do with systemic mismanagement than sub prime loans
No one pressured Angelo Mozilo at Countrywide to do 100% loans...at least no one from the federal government. No one forced Dick Fuld over at Lehman to buy up and securitize this crap....hell, Lehman could still be in business. They saw big $$$$$$
Posted on 3/7/19 at 1:11 pm to tarzana
What?
What needed fixing? Accountability?
Seriously what did they improve?
What needed fixing? Accountability?
Seriously what did they improve?
Posted on 3/7/19 at 1:12 pm to KiwiHead
quote:
Still, the IO unction of a loan is petty damned stupid especially on a primary residence
I dont understand this way of thinking but maybe that good for lower volume states
I don't disagree with what you said but Option arms saved all my clients from foreclosure
Thankfully they didnt freak out and refi into an awful 30yr fix
Posted on 3/7/19 at 1:15 pm to SDVTiger
I don't want to sell a mortgage product every again. I remember my old line from my subprime days " whats the 5% rate doing for you now". I make less per loan than i ever have in my career but yet i make more money now then i ever have. Like i said i found my lane and i am staying it it.
Posted on 3/7/19 at 1:24 pm to hawkeye007
quote:
I don't want to sell a mortgage product every again
Your not in the mortgage industry?
quote:
make less per loan than i ever have in my career but yet i make more money now then i ever have. Like i said i found my lane and i am staying it it.
hopefully rates stay low so you can continue Posted on 3/7/19 at 1:28 pm to timdonaghyswhistle
quote:
Banks did exactly what they were told do, which is finance anyone who could sign for it.
Under threat of sanction by the Clinton/Reno Justice Department.
Posted on 3/7/19 at 1:47 pm to SDVTiger
quote:
I dont understand this way of thinking but maybe that good for lower volume states
I'm an attorney by trade so I don't share the love of risk especially on a primary residence and Option ARM's had too much risk involved....plus I'd want t maximize my equity potential and Options and IO's just don't do that for you and certainly not a 2/28 first with a 30/15 second to mitigate the MI....too much risk on the adjustment... a change of 2 percentage points say from 5-7 is a big chunk and that could happen if you read the contracts.
quote:
I don't disagree with what you said but Option arms saved all my clients from foreclosure
Then your clients had bigger problems than just a big house note....those loans were originally set up for high net worth individuals who may have been using their home's equity as collateral for something else that should be short term maybe 2-3 years tops and max out at 85% LTV not the 95% PM that was being sold at the time and it certainly was not for John and Susie Public who were thinking they were gaining flexibility on the payment for their new home in Stuart, FL....true story
If your clients were on the verge of foreclosure , how do the get Option ARMs????? You needed 680 credit at a minimum for those?
Posted on 3/7/19 at 2:02 pm to KiwiHead
quote:
plus I'd want t maximize my equity potential and Options and IO's just don't do that
How does paying an amortized loan accomplish this? Or you believe paying principal builds equity
quote:
If your clients were on the verge of foreclosure , how do the get Option ARMs????? You needed 680 credit at a minimum for those?
Lol no you didnt. Worlds did a 550 and most were a 580 and above
They weren't in foreclosure it saved them from it during the implosion cause they rode a 2% IO for 10yrs on a 500k plus loan instead of a 6.5 30yr Fix but Frick some had a 3.5 30yr +15yr payment so they paid that in some cases
Plus they pulled all the equity out that they would have lost with the implosion and kept it under a mattress
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