Quote:
Originally Posted by Chuck 98 RT10
I see some parallels but I don't see how housing "corruption" can be anywhere near as successful as insider trading and inflated stock value.
Clinton turned a blind eye to Wallstreet corruption. What is Bush supposed to do about housing, tell people to go look at the property before buying?
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Or at least do something to crack down on these predatory lenders.
I was just talking about the mortgage mess. It is a sign that you are involved in a bubble, and that it is about to pop, when people who have no business being involved in the area start getting involved. When you neighbor opens a brokerage in his basement: bad sign. When you stay at home wife starts pulling coin selling homes: bad sign.
What abso-freakin-lutley kills me is that sub prime mortgages and the huge rush to issue them.
I am going to quote, directly from the 10-K filing of Radian Mortgage Insurance:
"Non-prime loans represented 28.1% of our total primary mortgage risk in force (59.4% of which was Alternative-A or “Alt-A”) "
"We define Alt-A loans as loans where the borrower’s FICO score is 620 or higher and
where the loan documentation has been reduced or eliminated."
That's the freakin problem right there. Someone, somewhere, should have said "Gee, I think it is fucking retarded that we are handing out mortgages to people with spotty credit who have filled out the EZ app with only thier name and estimated income".
EVERYONE was asleep at the wheel.
That is fucking retarded. I literally can not even begin to verbalize my fuming anger over this situation.
Think of it like this: You own a large company, and in an effort to boost sales, you start looking for new customers. Once you locate them, they say "Gee, you product is great, but we can't afford it". So you say, "hey no problem, just fill out a credit app" and they go "Ooh, we wont pass your standards".
So what do you do? YOU PRETEND NOT TO HEAR THEM AND GIVE THEM CREDIT WITHOUT THE APP.
Thats wrong on multiple levels.
Holy Shit.