Comments on: Still Think That The Housing Bubble Is The Fault Of The Buyers And Not The Lenders? http://www.arizonahousingbubble.com/2007/still-think-that-the-housing-bubble-is-the-fault-of-the-buyers-and-not-the-lenders/ The Arizona Housing Bubble And Credit Crisis From A Consumer's Point Of View Fri, 21 Nov 2008 16:48:56 +0000 http://wordpress.org/?v=2.2.2 By: “I want to be sure you are getting the best loan possible” - A Shocking Look Inside How Countrywide Helped Rape A Nation | The Arizona Housing Bubble | Watching The Arizona Real Estate, Credit, Lending, And Mortgage Crisis From A Consumer's Point Of V http://www.arizonahousingbubble.com/2007/still-think-that-the-housing-bubble-is-the-fault-of-the-buyers-and-not-the-lenders/#comment-148 “I want to be sure you are getting the best loan possible” - A Shocking Look Inside How Countrywide Helped Rape A Nation | The Arizona Housing Bubble | Watching The Arizona Real Estate, Credit, Lending, And Mortgage Crisis From A Consumer's Point Of V Mon, 27 Aug 2007 18:51:12 +0000 http://www.arizonahousingbubble.com/2007/still-think-that-the-housing-bubble-is-the-fault-of-the-buyers-and-not-the-lenders/#comment-148 [...] an article titled “Still Think That The Housing Bubble Is The Fault Of The Buyers And Not The Lenders?”, I proposed that while borrowers were not completely innocent, the lenders were still using quite [...] […] an article titled “Still Think That The Housing Bubble Is The Fault Of The Buyers And Not The Lenders?”, I proposed that while borrowers were not completely innocent, the lenders were still using quite […]

]]> By: “I want to be sure you are getting the best loan possible” - A Shocking Look Inside How Countrywide Helped Rape A Nation | The Arizona Housing Bubble | Watching The Arizona Real Estate, Credit, Lending, And Mortgage Crisis From A Consumer's Point Of V http://www.arizonahousingbubble.com/2007/still-think-that-the-housing-bubble-is-the-fault-of-the-buyers-and-not-the-lenders/#comment-149 “I want to be sure you are getting the best loan possible” - A Shocking Look Inside How Countrywide Helped Rape A Nation | The Arizona Housing Bubble | Watching The Arizona Real Estate, Credit, Lending, And Mortgage Crisis From A Consumer's Point Of V Mon, 27 Aug 2007 18:51:12 +0000 http://www.arizonahousingbubble.com/2007/still-think-that-the-housing-bubble-is-the-fault-of-the-buyers-and-not-the-lenders/#comment-149 [...] an article titled “Still Think That The Housing Bubble Is The Fault Of The Buyers And Not The Lenders?”, I proposed that while borrowers were not completely innocent, the lenders were still using quite [...] […] an article titled “Still Think That The Housing Bubble Is The Fault Of The Buyers And Not The Lenders?”, I proposed that while borrowers were not completely innocent, the lenders were still using quite […]

]]> By: MG http://www.arizonahousingbubble.com/2007/still-think-that-the-housing-bubble-is-the-fault-of-the-buyers-and-not-the-lenders/#comment-122 MG Thu, 23 Aug 2007 18:44:54 +0000 http://www.arizonahousingbubble.com/2007/still-think-that-the-housing-bubble-is-the-fault-of-the-buyers-and-not-the-lenders/#comment-122 Great tip Noreel! Here's the link: http://www.nytimes.com/2007/08/23/business/23mortgage.html?_r=1&hp&oref=slogin Looks like they may need to buy back some loans, this should prove interesting! Great tip Noreel!

Here’s the link:
http://www.nytimes.com/2007/08/23/business/23mortgage.html?_r=1&hp&oref=slogin

Looks like they may need to buy back some loans, this should prove interesting!

]]> By: Noreel http://www.arizonahousingbubble.com/2007/still-think-that-the-housing-bubble-is-the-fault-of-the-buyers-and-not-the-lenders/#comment-121 Noreel Thu, 23 Aug 2007 17:53:18 +0000 http://www.arizonahousingbubble.com/2007/still-think-that-the-housing-bubble-is-the-fault-of-the-buyers-and-not-the-lenders/#comment-121 Go checkout the NYT article about Countrywide today they might be headed out of business. This is bad. Expect a bailout. If they go out of bizness then most consumers will not be able to get loans. Go checkout the NYT article about Countrywide today they might be headed out of business.
This is bad.
Expect a bailout.
If they go out of bizness then most consumers will not be able to get loans.

]]> By: Noreel http://www.arizonahousingbubble.com/2007/still-think-that-the-housing-bubble-is-the-fault-of-the-buyers-and-not-the-lenders/#comment-117 Noreel Wed, 22 Aug 2007 21:47:39 +0000 http://www.arizonahousingbubble.com/2007/still-think-that-the-housing-bubble-is-the-fault-of-the-buyers-and-not-the-lenders/#comment-117 Everything is disclosed. Their is a very large piece of paper that shows how much your monthly payment will be every month for the life of your loan (15 years or 30 years or 45 years, etc). And you get to keep a copy of that piece of paper and you have 3 whole days to cancel the deal if you want after signing your documents. Everything is disclosed the idea that the lenders "hide" something is totally out of the question. I find it hard to believe 1 person in the USA believes a word a salesperson says. We all know that we have to get it in writing. In the mortgage business everything is in writing. Everything is disclosed in writing. If someone doesn't read the documents then its their own fault for not reading the documents. Everything is disclosed.
Their is a very large piece of paper that shows how much your monthly payment will be every month for the life of your loan (15 years or 30 years or 45 years, etc).

And you get to keep a copy of that piece of paper and you have 3 whole days to cancel the deal if you want after signing your documents.

Everything is disclosed the idea that the lenders “hide” something is totally out of the question.
I find it hard to believe 1 person in the USA believes a word a salesperson says. We all know that we have to get it in writing.
In the mortgage business everything is in writing.
Everything is disclosed in writing.

If someone doesn’t read the documents then its their own fault for not reading the documents.

]]> By: Noreel http://www.arizonahousingbubble.com/2007/still-think-that-the-housing-bubble-is-the-fault-of-the-buyers-and-not-the-lenders/#comment-116 Noreel Wed, 22 Aug 2007 21:43:14 +0000 http://www.arizonahousingbubble.com/2007/still-think-that-the-housing-bubble-is-the-fault-of-the-buyers-and-not-the-lenders/#comment-116 Well if a dollar is on the line i have found peoples "high horse" seems to ride out of town. But it just comes down to common sense for the borrower. Obviously the sales person is in the business for the money; so I am not blaming them. The sales person is just trying to make a living or get ahead in life. But customers should have known that buying a new big home with a $3500 mortgage while they only have a income of $5000 is the road to disaster. But time and time again many people were more than happy to take that loan so they could get into "too much house". If a minimum wage person buys/leases a $50,000 Mercedes we can all (except the car sales person) agree he is making a catastrophic financial decision. But for some reason when people were paying 65% their monthly income to their brand new mini-McMansion those borrowers were being applauded by everyone: the sales people (realtor, loan officer, broker, etc), their families, the community, etc. When all is said and done we will have a new president in about a year and a half and i am assuming the first thing the new administration will do(regardless of political party) is bail out the home owners and the banks from the current lending mess. Also BNC just closed down today. And Countrywides Subprime division (Spectrum?) got shut down yesterday. Waiting it out for Countrywide and IndyMac. If they go out of biz that is very bad news for all home owners-home ownership will have gone backwards about 20 years. Well if a dollar is on the line i have found peoples “high horse” seems to ride out of town.
But it just comes down to common sense for the borrower.
Obviously the sales person is in the business for the money; so I am not blaming them. The sales person is just trying to make a living or get ahead in life.
But customers should have known that buying a new big home with a $3500 mortgage while they only have a income of $5000 is the road to disaster.
But time and time again many people were more than happy to take that loan so they could get into “too much house”.
If a minimum wage person buys/leases a $50,000 Mercedes we can all (except the car sales person) agree he is making a catastrophic financial decision.
But for some reason when people were paying 65% their monthly income to their brand new mini-McMansion those borrowers were being applauded by everyone: the sales people (realtor, loan officer, broker, etc), their families, the community, etc.

When all is said and done we will have a new president in about a year and a half and i am assuming the first thing the new administration will do(regardless of political party) is bail out the home owners and the banks from the current lending mess.

Also BNC just closed down today.
And Countrywides Subprime division (Spectrum?) got shut down yesterday.
Waiting it out for Countrywide and IndyMac.
If they go out of biz that is very bad news for all home owners-home ownership will have gone backwards about 20 years.

]]> By: MG http://www.arizonahousingbubble.com/2007/still-think-that-the-housing-bubble-is-the-fault-of-the-buyers-and-not-the-lenders/#comment-115 MG Wed, 22 Aug 2007 19:33:02 +0000 http://www.arizonahousingbubble.com/2007/still-think-that-the-housing-bubble-is-the-fault-of-the-buyers-and-not-the-lenders/#comment-115 I agree with you, but you also have to accept that for every person with your moral standing, there are at least 10 others who had car payments to make. Having worked in real estate as an agent and as a service provider, I can count on one hand the agents I'd trust to represent me. However I don't have enough toes and fingers to count those that I wouldn't. Unfortunately, you are the exception here. I think we can both agree, as per your statement about the client's comment to your manager, that if it isn't the actual loan officer's fault, blame at least lies in the culture that the loan officer is brought up in. When a few thousand dollars lie on the dotted line, moral standing is purchased on the cheap. I agree with you, but you also have to accept that for every person with your moral standing, there are at least 10 others who had car payments to make.

Having worked in real estate as an agent and as a service provider, I can count on one hand the agents I’d trust to represent me.

However I don’t have enough toes and fingers to count those that I wouldn’t.

Unfortunately, you are the exception here. I think we can both agree, as per your statement about the client’s comment to your manager, that if it isn’t the actual loan officer’s fault, blame at least lies in the culture that the loan officer is brought up in.

When a few thousand dollars lie on the dotted line, moral standing is purchased on the cheap.

]]> By: Noreel http://www.arizonahousingbubble.com/2007/still-think-that-the-housing-bubble-is-the-fault-of-the-buyers-and-not-the-lenders/#comment-111 Noreel Wed, 22 Aug 2007 19:21:34 +0000 http://www.arizonahousingbubble.com/2007/still-think-that-the-housing-bubble-is-the-fault-of-the-buyers-and-not-the-lenders/#comment-111 Well everyone drops out for "easy money". People who want to "change the world" drop out after a bachlers degree so they can actually live life without having to study and be stuck in poverty. Those students who did delay their studies to make a living are the smart ones. They got to see how the "real world" operates and get out of student poverty for at least a few years. Well everyone drops out for “easy money”.
People who want to “change the world” drop out after a bachlers degree so they can actually live life without having to study and be stuck in poverty.

Those students who did delay their studies to make a living are the smart ones.
They got to see how the “real world” operates and get out of student poverty for at least a few years.

]]> By: Noreel http://www.arizonahousingbubble.com/2007/still-think-that-the-housing-bubble-is-the-fault-of-the-buyers-and-not-the-lenders/#comment-110 Noreel Wed, 22 Aug 2007 19:13:26 +0000 http://www.arizonahousingbubble.com/2007/still-think-that-the-housing-bubble-is-the-fault-of-the-buyers-and-not-the-lenders/#comment-110 As a former Loan Officer I understand your sympathy with borrowers but I must tell you it is the Borrowers Fault 100%. Let me give you my real life experience. With 7 different home owners I told the client (the potential borrower) that I can not give them a loan because it would put them in serious jeopardy of financial. On each occasion those clients called up my boss to complain about me. Of course some other heartless loan officer had no problem taking the commission and putting them in financial ruin. If someone is going to sign on the "dotted line" to make a house payment that is 75% of their monthly income i must say "they are asking for it". And dont let anyone use that pathetic excuse "i didnt know what i was getting myself into". That is total bull. Everyone knows that if your monthly income is $5,000 per month and your home loan expenses are $3,500 per month your going to be in financial ruin in no time. This is just a business stop putting so much emotion into it. The financial institutions made a ton of money, many loan officers in their 20s parties liked rock stars and are millionares, and many home owners made hundreds of thousands of dollars in profit from their home. Those people are happy counting their money. Its just everyone else who didnt make a dime or lost their home who are complaining. As a former Loan Officer I understand your sympathy with borrowers but I must tell you it is the Borrowers Fault 100%.
Let me give you my real life experience.
With 7 different home owners I told the client (the potential borrower) that I can not give them a loan because it would put them in serious jeopardy of financial.
On each occasion those clients called up my boss to complain about me.
Of course some other heartless loan officer had no problem taking the commission and putting them in financial ruin.
If someone is going to sign on the “dotted line” to make a house payment that is 75% of their monthly income i must say “they are asking for it”. And dont let anyone use that pathetic excuse “i didnt know what i was getting myself into”. That is total bull. Everyone knows that if your monthly income is $5,000 per month and your home loan expenses are $3,500 per month your going to be in financial ruin in no time.
This is just a business stop putting so much emotion into it.
The financial institutions made a ton of money, many loan officers in their 20s parties liked rock stars and are millionares, and many home owners made hundreds of thousands of dollars in profit from their home.
Those people are happy counting their money.
Its just everyone else who didnt make a dime or lost their home who are complaining.

]]> By: MG http://www.arizonahousingbubble.com/2007/still-think-that-the-housing-bubble-is-the-fault-of-the-buyers-and-not-the-lenders/#comment-109 MG Wed, 22 Aug 2007 18:23:44 +0000 http://www.arizonahousingbubble.com/2007/still-think-that-the-housing-bubble-is-the-fault-of-the-buyers-and-not-the-lenders/#comment-109 I still don't think the borrowers are NOT at fault, but you have to admit that when lenders aren't being honest, the borrowers cannot be held liable for trusting them. How is a buyer supposed to know about what a lender doesn't disclose? There's a limit to what we can expect buyers to know about going in. I still don’t think the borrowers are NOT at fault, but you have to admit that when lenders aren’t being honest, the borrowers cannot be held liable for trusting them.

How is a buyer supposed to know about what a lender doesn’t disclose? There’s a limit to what we can expect buyers to know about going in.

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