or Connect
AppleInsider › Forums › Other Discussion › AppleOutsider › How the markets really work: sub-prime loans
New Posts  All Forums:Forum Nav:

How the markets really work: sub-prime loans

post #1 of 8
Thread Starter 
So you want to buy a house? Bankers, along with Lawyers, should be shot.

Video
post #2 of 8
I would look at the morgage brokers before anyone. Most of these "loan officers" were just kids looking to make a quick buck.

I had a few friends work for Ameriquest during college. A lot of them even quit school to work full-time, as they were making over 100k within their first few months. I couldn't begin to tell you how many people they fucked over. Most of their dirty work came from refinancing, but they would do whatever they could in order to make money, knowing all-well they would be probably ruining lives in the process.

The ones that quit school are suffering now. All of them except one were laid off when the market died.
"If I had played my career hitting singles like Pete (Rose), I'd wear a dress." - Mickey Mantle
Reply
"If I had played my career hitting singles like Pete (Rose), I'd wear a dress." - Mickey Mantle
Reply
post #3 of 8
Thread Starter 
Quote:
Originally Posted by Guybrush Threepwood View Post

I would look at the morgage brokers before anyone. Most of these "loan officers" were just kids looking to make a quick buck off.

You are, of course, right. But we can tar the bankers for other reasons.
post #4 of 8
All right, I live in Singapore and am looking for a personal loan but only through the legitimate lenders only but preferably banks. The banks have offer from time to time, is there any way to compare the available rates in real time? I want to compare Loan amounts, Loan durations, Interest rate, Processing fees, Insurance fees, Foreclosure charges for different banks. How do I go about it?
post #5 of 8
Pay cash...
post #6 of 8
Quote:
Originally Posted by Guybrush Threepwood View Post

I would look at the morgage brokers before anyone. Most of these "loan officers" were just kids looking to make a quick buck.

I had a few friends work for Ameriquest during college. A lot of them even quit school to work full-time, as they were making over 100k within their first few months. I couldn't begin to tell you how many people they fucked over. Most of their dirty work came from refinancing, but they would do whatever they could in order to make money, knowing all-well they would be probably ruining lives in the process.

The ones that quit school are suffering now. All of them except one were laid off when the market died.


Not to say there weren't unscrupulous brokers, but that's not the problem. Brokers can only sell the product that banks provide. Banks formerly had a huge number of special finance vehicles available to the consumer. It was they who allowed things like teaser rates, "no doc" loans, negative amortization, etc. They could do this because the marketplace was willing to buy these loans. Fannie Mae, Freddie Mac and Ginne Mae bought and guaranteed these mortgage loans.

With declining/historically low interest rates, skyrocketing property values and a good economy, there was no problem. It didn't matter if someone bought more house than he could afford, because chances are he could just tap the equity for more cash or sell the home for a huge profit. Or, if he did default, the bank had an appreciated asset as collateral.

Of course, that has now changed for reasons you already know. The pendulum has swung completely the other way. Whereas banks may have had 40 financing programs in the past, they know have, say, 15. The approval guidelines have changed in the extreme. In the past, a credit score of over 600 would likely get one approved. Anyone over 680 was consider a prime borrower. Now, you won't be considered under 680. They look closely at anyone between 680 and 720. The end result is people like me (who fall at the extreme upper end of that range) now have more trouble getting loans. They get them, but it's not as easy. So this is far more than a sub-prime issue.
I can only please one person per day.  Today is not your day.  Tomorrow doesn't look good either.  
Reply
I can only please one person per day.  Today is not your day.  Tomorrow doesn't look good either.  
Reply
post #7 of 8
Come on SDW!

February?

You had your chance to chime in. Now it's too late...
"If I had played my career hitting singles like Pete (Rose), I'd wear a dress." - Mickey Mantle
Reply
"If I had played my career hitting singles like Pete (Rose), I'd wear a dress." - Mickey Mantle
Reply
post #8 of 8
Quote:
Originally Posted by Denton View Post

So you want to buy a house? Bankers, along with Lawyers, should be shot.

Video


Yes,

You are right.
Thanks for providing this great link.
I went through that and it's a fantastic link
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: AppleOutsider
AppleInsider › Forums › Other Discussion › AppleOutsider › How the markets really work: sub-prime loans