Man, you wouldn't believe the amount of disclosures that are sent out, and handed, to the customers now. It's almost like the lender is trying to talk the customer out of doing the loan. Sometimes it works.... Socialism at every level......the future only looks bright for those wishing to be sustained by government aid.
If you can't make your note, do the responsible thing, sell your house and move. There are apartments for rent. There are manufactured homes for sale. And the best thing ever, there is FREE governmental housing. I can't see what the problem is. If I lose my job, and can't secure another job at the same rate, and then can't afford my house note, guess what? The house will be on the market and we will be shopping for a smaller house. If that means that we have to get an apt for 6 mos until we find the right house, so be it. Then again, maybe I should wait and see if Uncle Sam will give me a handout. Oh wait, I make too damn much money and pay way too much taxes to ever qualify for assistance from Uncle Sam. Silly Dems.
As a Mortgage Broker, I will tell you this: 50% of the blame is on the sub-prime lenders who offer loans to people with shotty credit (a guy in my office refi'd someone with a middle score of 487), recent bankruptcies (1 day out), mortgage lates, past foreclosures, interest only loans, and even people with no jobs (no doc/stated loans). 50% of the blame is on the sub-prime borrowers who use their homes as ATM machines, buy too much home (to keep up with the Coopers across town), run up credit cards and pay the high balances off annually by refinacing annually, etc. I get people all the time with 500 scores that call me demanding the 5.75% 30 year fixed that I advertise. Those times are gone. The sub-prime market shake-up will fix itself and these people will no longer be able to do these types of loans....let alone buy the house in the first place. The lesson here is PAY YOUR BILLS ON TIME! Your credit is very important...it's time to treat it that way. It's simple, if you pay your bills on time, you will qualify for a conforming loan and you won't have to worry about any of this.
As a mostly sub-prime mortgage broker....all I can say is....It was fun while it lasted. :hihi: Nah...times are still good. I'm looking at closing around $750,000 this month, and that isn't bad when your average loan amount is about 70K. It'll all work it's self out. It always does. Cajun, if you don't feel like closing those "people with shotty credit" loans, I'll take all of the referrals you can send me. Thanks in advance. :thumb:
Some one who would do that is nothing short of a loan shark. Apparently there are no professional standards or ethics for mortgage brokers. This guy should not even be allowed to remain a broker.
Government should have absolutely no role in this whatsoever. If anybody can miraculously formulate an argument to the contrary, you only have me to deal with, given martin's artificial suspension. I'm fully confident that there's no argument to be made though.
Don't know how much you know about the sub-prime business, but the words professional and ethics are probably the last thing that comes to my mind. It's just a different animal. I've always considered it one notch above the loan sharking business. I don't blame the loan originators/brokers as much as I blame the employer. You either produce loans or you make nothing, then you are fired. You really have little choice but to bend the rules if you want to make a living in that business. The good ones can make a ton of money. I can't count the number of originators I fired for either lack of production or cutting too many corners back in the 90s. Hope I didn't offend any of you in the business ... I'm sure you are very professional and ethical.
I'm not referring to the broker, I'm referring to the lender. The lender is the one who offers the loans, makes the guidelines, and underwrites the files. The broker is just offering the borrower what they qualify for. It's not the broker's fault. 90% of my business is conforming, so I have to reason to defend sub-prime brokers, but I am. After the Hurricane, when people's credit went to hell in a handbasket and mortgage companies screwed people over by reporting mortgage lates, the sub-prime market helped alot of good people save their homes. There is a niche and a purpose in America for sub-prime lending. We need it, our economy needs it and they are good loans. They just kinda got out of control there for a while. The lenders are tightening up the guidelines. The underwriters are tightening up underwriting, and the appraisal reviewers are tightening up the appraisal reviews. It will all shake itself out soon.
