How about the mortgage brokers that were involved in rampant fraud back in 2002 to 2005?
People would come in that could not clearly afford the home, but the loan documents were forged so they could get the house. Those in underwriting were involved in the fraud. People would come in that could easily afford the house, with 20% down, but put into ARMs and IO loans when they could have been in 30 fix loans. Mortgage brokers would tell them the can only get an ARM or IO and the person would just accept it. Mortgage brokers got a large percentage of the loan when they pushed ARMs and IO loans. I know two people there went into the mortgage industry and got out in just a few weeks because of the massive fraud that was going on. -----Original Message----- From: Charlie Griefer [mailto:[email protected]] Sent: Friday, February 20, 2009 9:02 AM To: cf-community Subject: Re: The 'Mortgage Plan' On Fri, Feb 20, 2009 at 8:40 AM, Justin Scott <[email protected]>wrote: > > Scott Stroz wrote: > > Exactly...a 'reasonable' investment. But people who bought houses with > > interest only loans so they could afford the $450,000 home on $30,000 a > year > > is not what I would call reasonable. > > Caveat emptor. Yes, the banks share some responsibility for allowing > that loan to begin with, but the buyer shouldn't be able to keep the > property if they were the ones driving the purchase in the first place, > especially with variable interest rates that could go up at any time. > People need to be accountable for their decisions. I feel for those who > made good choices and are now losing their income and unable to keep up > because of external factors, but I have no sympathy for those that got > in way over their heads and created this mess to begin with. > By the exact same standard, shouldn't the banks be held accountable for their decisions? They decided to grant these risky loans (in many cases they aggressively tried to "sell" them) in order to make money. risk/reward. high risk, high reward. Really, it's not like these people ("these people" being those that took the interest only or ARM loans) were begging and pleading for banks to grant them. I saw a documentary recently called "Maxed Out". It was on Showtime, I believe. Not sure of its availability... but if you can find it I'd highly recommend watching it. It really paints lending corporations as predators. You know who they really want as a customer? The kind of person who's late on their payments. You know why? So they can collect late fees. They knowingly pursue those that they know cannot make the payments because they think they can make a few extra bucks. Risk/reward. I'm not trying to sound like I want to grant immunity to the mortgage holders who were greedy. There is definitely culpability there as well. But it's not all on their shoulders, IMO. "People need to be accountable for their decisions" goes both ways. -- I have failed as much as I have succeeded. But I love my life. I love my wife. And I wish you my kind of success. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:289320 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5
