Subprime mortgage ??

[gotmilk]

So how does one make money of these serious of misforunate events?

In other words, which stocks would you short??

The smaller lenders who cannot access larger lines of credit...the bigger companies can borrow from banks at almost anytime.

 

[jnevin]

They took out almost $12 B in their last line of credit. Have almost $22 Billion in deposits just from account holders with a minimum $1ook per account. Plus, offered a higer interest rate to anyone willing to open a new cd.

They still need to sell more notes to cover themselves just in case though....and no one is willing to buy those notes (except ole Warren since he's not using debt to puchase debt)

$12B hardly makes a dent in CW's operations costs. They aren't going to Bk, but they'll take a pretty good hit. They bought too much paper is what their problem was. They bought so much shit because of the money from servicing and didn't audit the files the way they should have. Buying from ameriquest and hfc nailed them. Plus, they were buying from Long Beach (WAMU) and the Moore Division (Wells' sub prime), and they had pretty lax underwriting practices. CW wrote a lot of subprime and they allowed a ton from brokers, which is where most loan fraud occurs.

 

[jnevin]

So how does one make money of these serious of misforunate events?

In other words, which stocks would you short??

If you have the money, start buying second mortgage paper. I haven't even looked, but I'm sure you can buy it for maybe .25 on the dollar.

 

[heatherrae]

They were predatory and sought to ruin lives. Now they are going down. Good riddance.

 

[jnevin]

I didn't even read what our resident paralegal said, but I'm sure it was something about the banks trying to take the peoples' homes, that it was never a borrower's fault, and that the banks and their thousands of employees deserve to be broke and on the street. Definitely not the borrowers that signed all of the paperwork confirming the information. Nooooo. They're all victims.

 

[heatherrae]

People trying to buy homes to house themselves and their children --yeah, those are the real bad guys.

I did nothing but foreclosure work for over 2 years. Only ONCE did I see an application where the borrowers lied. I saw a few where the brokers forged different numbers on the applications after the borrowers signed for it. 99.99% of were the victims of predatory lenders. I hated my own clients for the most part.

And, if you want to look up my bar credentials, I will give you the link. I know that would upset you to see, though.

 

[jnevin]

K, I read that one. So, you're telling me that the docs signed by the borrowers were changed from when they signed at the title company or attorney's office to when they were sent back to the bank's funding department? The only ones that could do that would be the ones that signed the borrowers. Title companies and attorneys have copies of every file they sign, so they'd be the ones that changed them, not the lender. The borrower signs and confirms every bit of information at a closing. It's what makes them responsible for the loan.

 

[heatherrae]

K, I read that one. So, you're telling me that the docs signed by the borrowers were changed from when they signed at the title company or attorney's office to when they were sent back to the bank's funding department? The only ones that could do that would be the ones that signed the borrowers. Title companies and attorneys have copies of every file they sign, so they'd be the ones that changed them, not the lender. The borrower signs and confirms every bit of information at a closing. It's what makes them responsible for the loan.

In the cases I'm referring to, the loan brokers altered certain pages and forged signatures on applications before they were submitted to the lenders. We aren't talking about docs signed at closing. I did probably close to 4500 foreclosures and only in 1 of those did the borrowers lie on the application.

 

[jnevin]

You re-sign all of the same documents at closing. the only ones they'd have altered would be the pages of the application, but those are to be re-read at closing. It's the responsibility of both the escrow officer and the borrower to have the information reviewed.

 

[heatherrae]

They sign stacks of docs. You've been to closings, I'm sure.

One of the brokers to whom I'm referring shot himself in the head after we figured out how the docs got changed around. He did it fro the commissions. I'm sure he did it lots but he got caught once.

Most of those subprime lenders were scumbag companies. Sorry if you are one and that offends you but they are. I felt dirty representing those scumbags. My conscience felt way cleaner representing accused felons than those scumbag lenders. Don't get me started on the buy here pay here car lots either. I had one of those as a client too. I don't know how the owner put his head down on the pillow at night. I used to have to take him to derby and shit all the time. Bleh.