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Message
1
Posted on 3/5/19 at 2:07 pm to Tigahhs97
Barney and the democrats there is footage of the R's warning them and they called them racists.
Also: why not a peep about Obama paying off the banks with slush money for the dems campaigns?
Also: why not a peep about Obama paying off the banks with slush money for the dems campaigns?
Posted on 3/5/19 at 2:35 pm to Tigahhs97
I have been a Mortgage Loan Officer since 2004 so i let me offer some non political insight . It was everyone involved in the industry at the times fault. Politicians, banks, borrowers and lenders. I worked for Ameriquest Mortgage when i started out. I was wrote up early on for not selling enough adjustable rate mortgages. Yep our number one product was called a 2/28 mortgage . That program had a fixed rate for 2 years and pre-payment penalty that last 4 years and was backed by fannie mae. I was young and didn't have a clue what i was selling. I am still a loan officer and the rules and regulation now are cumbersome but very needed. There will be another mortgage crisis in the future but that has more to do with values than loan programs. The fact that i can still approve people for a conventional loan up to 50% of their income is crazy. That's gross not net!! People treat homes like cars. They expect the value to always go up and trade them every 5yrs. My pocketbook and 401k would like to thank them for this way of thinking but it's not the way the housing market works. Fannie and Freddie now turn a profit and the industry has stopped with stupid loan products like stated loans and bank statement loans. These types of loans are still around but amount to a small % of loans originated. My bank doesn't even offer these types of loans and the rates are so high on them that most people will not take the offer.
Posted on 3/5/19 at 3:19 pm to hawkeye007
quote:
2/28 mortgage . That program had a fixed rate for 2 years and pre-payment penalty that last 4 years
That is predatory. That was in Louisiana?
Posted on 3/5/19 at 3:23 pm to hawkeye007
quote:
The fact that i can still approve people for a conventional loan up to 50% of their income is crazy. That's gross not net!!
That is crazy... Who is holding those types of loans?
(Makes mental note of bank stocks to short...)
Posted on 3/5/19 at 3:34 pm to CivilTiger83
quote:
Who is holding those types of loans?
(Makes mental note of bank stocks to short...)
I'm out of the biz, but it may be all of them. They used offsetting measures to expand underwriting. 780+ score, 10% down, and $50k in assets, and the payment ratios aren't as big a deal. Better payment ratios, and the downpayment isn't as big a deal. Good ratios and downpayment, and the credit score can be lower (maybe 620 or 640?).
It underwrites the risk as a whole.
Posted on 3/5/19 at 3:55 pm to meansonny
quote:
I'm out of the biz, but it may be all of them. They used offsetting measures to expand underwriting. 780+ score, 10% down, and $50k in assets, and the payment ratios aren't as big a deal. Better payment ratios, and the downpayment isn't as big a deal. Good ratios and downpayment, and the credit score can be lower (maybe 620 or 640?).
Thanks meansonny… that is still crazy to me that someone with say a $60k income and 10% down would be approved for a loan over $400k for a home. That isn't close to sustainable.
Posted on 3/5/19 at 4:37 pm to Mo Jeaux
quote:
quote:
Meansonny, as a former insider, isn't it amusing reading all these asshats using big words to talk like they know what the frick they are talking about?
Such as?
Legislation doesn't dictate supply and demand.
There was plenty of supply. Foreign investments were coming in the billions (capital B). They demanded volume. They allowed variances in guidelines. But demanded larger and larger bundles (the variances allowed for larger bundles).
There was plenty of demand. How does everyone advertise mortgages these days (rocket mortgage)? Speed, ease, and knowledgeable help. Those underwriting variances helped with all of that. The mortgage loan officers like them (easier documentation requirements on sourcing down payment, employment history, etc..).
CDCs fricked up wallstreet and AIG who insured them.
But as for the product itself... the supply of money from foreign investment begging for volume at the cost of quality literally created the bubble.
Poor legislation doesn't create investment in the product. It can't force the Bank of Hong Kong to dump billions into our economy.
Poor legislation doesnt create a market of borrowers and originators willing to take a higher interest rate for ease/simplicity.
The finger pointing is laughable. Acceptable credit scores for usda rural financing are about the same as the subprime lending. Downpayment assistance still nets virtually nothing out of pocket. With reserve requirements met, debt ratios still stretch high gross incomes. But the political finger pointing has stopped despite underwriting remnants still lingers. That should confirm that the Ds and Rs don't matter.
Posted on 3/5/19 at 4:41 pm to CivilTiger83
quote:
Thanks meansonny… that is still crazy to me that someone with say a $60k income and 10% down would be approved for a loan over $400k for a home. That isn't close to sustainable.
First off, the qualifying rate on a variable interest only is not the starting rate. It is higher.
Secondly... yes. If the borrower has no car loan, no student loan, and no credit card minimums, then the mortgage payment can be upwards of 40% (or more with reserves) of the gross income.
Posted on 3/5/19 at 4:42 pm to Mo Jeaux
Hmmm interesting. Because CDS had literally 0 impact on causing the recession
Posted on 3/6/19 at 6:49 am to wutangfinancial
quote:
Hmmm interesting. Because CDS had literally 0 impact on causing the recession
A good chunk of the big banks went belly up or needed a bailout due to their exposure to CDS or exposure to other banks that held CDS.
Posted on 3/6/19 at 6:52 am to wutangfinancial
quote:
Hmmm interesting. Because CDS had literally 0 impact on causing the recession
What? Expressly state your thought. Are you intending to reply to me? You stated that I’m getting certain financial products confused, which is ludicrous, because I’m in the industry and have been for years.
Posted on 3/6/19 at 6:59 am to Tigahhs97
There used to be a video available from back then showing some banking subcommittee hearing where all of the white Republicans on the committee one after another said exactly what was going to happen while the mostly black Democrats used their time to say there was no problem. That was around 2006. I have tried to look it up, can't figure out a keyword for it.
Posted on 3/6/19 at 7:03 am to deeprig9
quote:Your post outlines massive fraud, complete with feloniius violations of black-letter Federal laws against such practices. All of which were clearly documented.
Liberals and Conservatives and Clinton and Bush and Barney Frank et al had jack shite to do with the whole situation, really.
How many people who were part of theses schemes were even charged with crimes, much less went to jail for committing them (or not reporting them)?
Who was charged with enforcement of these laws? And to whom are they accountable?
What's preventing it from happening again, as long as the politicians (on both sides of the aisle) continue to look the other way?
Posted on 3/7/19 at 10:18 am to CivilTiger83
Chase, Wells Fargo, Bank Of America....every damn loan service company that accepts Fannie/Freddie loans.
Ameriquest Mortgage was the nations largest subprime lender. They originated mortgages in every state. In 2007 the company was fined 580 million dollars. The owner cut a check to the FED and then Bush made him an ambassador to the Neitherlands if i remember correctly.
quote:
That is predatory. That was in Louisiana?
Ameriquest Mortgage was the nations largest subprime lender. They originated mortgages in every state. In 2007 the company was fined 580 million dollars. The owner cut a check to the FED and then Bush made him an ambassador to the Neitherlands if i remember correctly.
Posted on 3/7/19 at 10:23 am to CivilTiger83
The only type of loans that require reserves (other thank down payment money) are jumbo loans. So yes someone with a 720 credit score and 5% down and no reserves can buy a house up to 45% of their gross income. Note i said 5% down because that is the min down payment on conventional loans.
Posted on 3/7/19 at 10:44 am to hawkeye007
quote:
Ameriquest Mortgage
Their stuff was junk. I had an insider tell me one time about their practices inside of the office and it was ridiculous. Make a quote and price the loan before pulling the credit and then when the borrower came in hit him with the actual fixed 2 yr rate which tended to be higher with a ridiculous index or the adjustable period.
quote:
Bank Of America
I kind of give them a pass in the whole subprime crisis in that in the run up BOA was not writing the bad stuff and was actually pretty responsible with their underwriting. They bought their problems when Countrywide went down the tubes and BOA bought the servicing platform...for a steal really and then they had to go and buy Merrill , saw that they were buying a dog , tried to back out and Hank Paulson told them if they knew what was good for hem they would buy that dog infested with fleas
This post was edited on 3/7/19 at 10:45 am
Posted on 3/7/19 at 11:20 am to KiwiHead
quote:
Ameriquest Mortgage
quote:
I had an insider tell me one time about their practices inside of the office and it was ridiculous.
Now you've heard from two insiders.
Edit- with hawkeye, now you've heard from three.
This post was edited on 3/7/19 at 11:29 am
Posted on 3/7/19 at 11:25 am to CivilTiger83
quote:
Who is holding those types of loans?
FHA. They go up to 55% back end
Posted on 3/7/19 at 11:27 am to SDVTiger
I have seen a huge decline in FHA loans over the last couple of years. With the upfront MI and the monthly PMI they are high cost loans. I will say that 80% of my clients are better prepared to buy a home than 5yrs ago. People are learning .
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