Libya to adopt Sharia Law

[javaguru]

wrong java, banks were hiring ex convicted drug dealers to sell mortgages. Now why would they do that? Cause these guys had swing in their old dealing grounds. Do you think they were using tactics like that to sell to middle class american suburbia? No......and of course if you go into a ghetto and hand someone a loan application and tell them that they won't be income verified, they are going to lie like a mother fucker to get that 300k loan. The whole purpose of those loans was default, turn that property around and default it again in 6 months.....they were making SHIT TONS of money doing that java. C'mon man you know this, this has been plenty written about.

The fact someone was convicted of a crime in the past is irrelevant; Were they committing crimes in their capacity as loan officers? Did they materially misrepresent the terms of the agreement? It seems like you are blaming salesmanship for the housing crisis and excusing greed from people that aren't ceo's.

Finally, I can tell you that banks HATE defaulting loans because they almost always lose money on foreclosed property. They're in the business of making money on loans, not flipping foreclosed properties.

 

[ceo]

wrong java, banks were hiring ex convicted drug dealers to sell mortgages. Now why would they do that? Cause these guys had swing in their old dealing grounds. Do you think they were using tactics like that to sell to middle class american suburbia? No......and of course if you go into a ghetto and hand someone a loan application and tell them that they won't be income verified, they are going to lie like a mother fucker to get that 300k loan. The whole purpose of those loans was default, turn that property around and default it again in 6 months.....they were making SHIT TONS of money doing that java. C'mon man you know this, this has been plenty written about.

No. Some mortgage brokers may have done that, but not banks or lenders. They all have underwriters to go over every single part of the loan, to verify everything on the documents. If it was a stated income loan of a W2 wage earner, they looked at salary.com to verify the salary was in range. They verified employment too. If it was stated income, self-employed, they verified the business and looked at everything that was stated to see if it made sense. There were still checks and balances.

They still also used credit history and FICO scores. You can tell a lot about someone by their credit. People with experience can read someone's credit history and tell you most of that person's life story.

LOL @ going into the ghetto to give some no job having ngr with a 450 credit score because he defaulted on the only rent-a-center line of credit he ever had a fucking 300k loan. You serious? You've been eating up all the bullshit they've been feeding you.

Java > you

 

[wootoom]

No. Some mortgage brokers may have done that, but not banks or lenders. They all have underwriters to go over every single part of the loan, to verify everything on the documents. If it was a stated income loan of a W2 wage earner, they looked at salary.com to verify the salary was in range. They verified employment too. If it was stated income, self-employed, they verified the business and looked at everything that was stated to see if it made sense. There were still checks and balances.

They still also used credit history and FICO scores. You can tell a lot about someone by their credit. People with experience can read someone's credit history and tell you most of that person's life story.

LOL @ going into the ghetto to give some no job having ngr with a 450 credit score because he defaulted on the only rent-a-center line of credit he ever had a fucking 300k loan. You serious? You've been eating up all the bullshit they've been feeding you.

Java > you

bwhahahhahahahahahaahhahahahaah what a fucking mess

 

[redsamurai]

LOL @ going into the ghetto to give some no job having ngr with a 450 credit score because he defaulted on the only rent-a-center line of credit he ever had a fucking 300k loan. You serious? You've been eating up all the bullshit they've been feeding you.

yeah actually that's exactly what happened dude. ARe "you" serious? You don't know that they "WERE NOT" doing income verification? Are you just now coming out of a long sabbatical in the woods? Did you just finish shavin off a 5 year beard and decide to reply to my post? You could put any income you wanted on the forms and they were hinting at you the whole time that it's "Illegal for us now to verify your income". That was a big part of this whole mess that people who had no chance in hell of making payments on a 300k home were gettting the mortgages. These people weren't lasting 6 months in their house's....and yeah Java the banks were making money on foreclosures, they were packaging off the high risk debt and selling it to the chinese who I realy don't know why but were eatin that shit up.

Seriously you guys don't remember any of this? wtf where am I?

 

[mrplunkey]

I'm pretty sure this was the old process:

1) Mortgage company writes loan.

2) Mortgage company then pockets up-front fees and resells loan to Fannie/Freddie

3) Fannie/Freddie bundles groups of mortgages and sells them as mortgage-backed securities to secondary investment market.

Then:

1) Mortgage companies encouraged to make riskier loans in the name of home ownership. Lending standards are lowered.

2) Riskier loans became attractive to non-GSE investment firms who began bundling them into riskier portfolios.

3) GSE's continued to lower standards as well to compete with private-label mortgage bundlers.

4) Riskier portfolios are then secured with credit default swaps or insurance policies.

5) Housing prices continue to escalate via access to even cheaper and more plentiful money.

6) Bubble bursts.

7) We all learn first-hand that credit default swaps and insurance don't protect against broad-scale systemic failure.

Lessons We Should Learn:

1) Don't make crappy loans.

2) GSE's will chase business opportunities into the crapper just like private firms will. There's no benefit (and some detriments) to the government being in the secondary mortgage market.

3) Systemic risk should be priced into these portfolios as well as their associated credit default swaps and insurance policies

Lessons We Will Probably Learn Instead

1) Home ownership is an American right (completely wrong)

2) GSE's allow government to participate in and interject public policy issues into private-sector activities. (nighmarishly bad idea)

3) Banks need more regulation (another nighmarishly bad idea).

 

[redsamurai]

I'm pretty sure this was the old process:

1) Mortgage company writes loan.

2) Mortgage company then pockets up-front fees and resells loan to Fannie/Freddie

3) Fannie/Freddie bundles groups of mortgages and sells them as mortgage-backed securities to secondary investment market.

Then:

1) Mortgage companies encouraged to make riskier loans in the name of home ownership. Lending standards are lowered.

2) Riskier loans became attractive to non-GSE investment firms who began bundling them into riskier portfolios.

3) GSE's continued to lower standards as well to compete with private-label mortgage bundlers.

4) Riskier portfolios are then secured with credit default swaps or insurance policies.

5) Housing prices continue to escalate via access to even cheaper and more plentiful money.

6) Bubble bursts.

7) We all learn first-hand that credit default swaps and insurance don't protect against broad-scale systemic failure.

Lessons We Should Learn:

1) Don't make crappy loans.

2) GSE's will chase business opportunities into the crapper just like private firms will. There's no benefit (and some detriments) to the government being in the secondary mortgage market.

3) Systemic risk should be priced into these portfolios as well as their associated credit default swaps and insurance policies

Lessons We Will Probably Learn Instead

1) Home ownership is an American right (completely wrong)

2) GSE's allow government to participate in and interject public policy issues into private-sector activities. (nighmarishly bad idea)

3) Banks need more regulation (another nighmarishly bad idea).

In lowered you mean dropped through the floor right? lol

Omg did plunkey just drop a morsel of sanity on this discussion?

Everyone outside do you see a rider upon a pale horse?

 

[mrplunkey]

^^^ This is why trying to teach you anything is pointless.

 

[redsamurai]

The fact someone was convicted of a crime in the past is irrelevant; no it isn't, especially not in this case
Were they committing crimes in their capacity as loan officers? technically maybe not but now I beleive they would be
Did they materially misrepresent the terms of the agreement? yeah pretty sure the ex crack dealers weren't being completely upfront with all of the TOA....hence why the were hired in the first place
It seems like you are blaming salesmanship for the housing crisis and excusing greed from people that aren't ceo's.
Selling people making 20k or less a 300k mortgage, that's not salesmanship..that's predatory lending on uneducated people who can't possibly hope to understand what they're getting into. ANd in normal circumstances banks wouldn't even entertain the thought for one moment of giving someone like that a 6 figure mortgage.

Finally, I can tell you that banks HATE defaulting loans because they almost always lose money on foreclosed property. They're in the business of making money on loans, not flipping foreclosed properties.

So you're not aware that flipping foreclosed properties was exactly how they were making more money they knew what to do with? These people they gave these loans to were foreclosed on the very first payment they missed...why? because they wanted them out of there so they could get the next new batch of beverly hillbilly's into the house and sell off the old debt. Where were you in 2008-2009 when this was all coming out java?

???

 

[redsamurai]

^^^ This is why trying to teach you anything is pointless.

I was actually complimenting you in case you missed it.

 

[redsamurai]

No. Some mortgage brokers may have done that, but not banks or lenders

.

Yeah no a couple banks got caught doing exactly that right here in my hometown. Reporters posing as meager income people were being offered 250k loans WITHOUT ANY INCOME VERIFICATION.. First class in my business school was Econ and this was the first two weeks of the class, talking about how banks were making over on these practices.

I DISTINCTLY remember a black girl, and god I hate to relate this story cause it's so stereotypical, but that girl after the professors explanation and example of one of the local banks was like "damn i need to get my ass over to that bank asap". I distinctly remember the mortified like on the professors face as he just got done explaining how all of this shit tanked the economy and here was this black girl saying I need to hop through that loophole before they close it. And she was being dead serious, she was asking the professor the exact branch where one of these reporters caught them doing that. This was going on through the whole country dude.