So where did all the money go?

[Cold_Zero]

Right now I really don't have much sympathy for the Mortgage Lenders that failed to follow best business practices when financing people, not to mention lying on applications or looking the other why when they knew these people couldn't afford the mortgage. A lot of times they entice borrowers to consolidate their debt into their mortgage, taking on unsecured debt loads that they didn’t really have to in the first place and other times just refunding the difference to the borrower to go on vacation or buy a big screen TV. Then when the borrower’s ARM re-adjusted they wouldn’t play ball in working with the borrower help them make their payments. No they sat on properties until they had an oh **** moment when they owned the better parts of Indianapolis, Las Vegas, Sacramento… every major metropolitan area. And it wasn’t until the Congress stepped in and made these guys rework the terms of these loans so that the borrowers could pay them off. No I have very little sympathy for lenders like Countrywide and Wells Fargo…

See folks when we buy loans that later go into default; we have something called re-course with the original lender. After a certain point (180 days), we sell the loan back to the original lender and they deal with it. And if you call us because you can’t pay your loan, we have a myriad of repayment options that can help borrowers pay their monthly payment amount. Why? Because we have things like cohort rates where we have to keep certain percentage of our portfolio in good standing so that we can go and make more loans. Where is the incentive for lenders to not do this when there is no recourse for bad loans and the government will eventually step in and buy the bad debt up?

Oh no! Bud you are being too hard on the Mortgage Lenders, it’s the borrowers who should have done their homework to make sure they could afford the house, the payments, the taxes, insurance, the property taxes, and the escrow. Sure, but when you look at how the Credit Card Industry has behaved in the last 10 years, there is BIG business in sub prime lending. Look at the proliferation of unsecured credit cards, payday lending, personal loans (with usery rates), consolidation loans and now mortgages. Lenders actually prefer to lend money/credit to sub prime borrowers because they can charge higher than normal interest (rates), PMI (Private Mortgage Insurance) and charge all sorts of fees. To lenders it is a gold mine. I would encourage people to watch “Maxed Out” on DVD to get an intro to the ills of the lending industry.

[smockers83]

You didnt get that memo? I changed their name two weeks ago.. I will have to go back and fire my secretary.bud

No, sorry, didn't get that one. Makes sense though since the government took over...its really not international anymore is it?

Thanks for the update.

[Cold_Zero]

I guess its ANG now? American National Group?

[Jesda]

This thread rocks. Thank you, Bud.