Government-backed liar loans

[ljaycox]

Re: Government-backed liar loans

Perhaps you could provide some evidence to what you are saying.

Cindy

I don't have time right now--I am doing what I do for a living.
But I will make one suggestion:
Go over to "Calculated Risk" and look for the link to "Tanta In Memorium"
During this crap weather (if it is crappy where you are), it would be a good excerise for you to, get something warm to drink, read the Mortgage Lending for Unbernerds" posts that are preserved there.
Then read her posts in the archives as time went on.
She was a minor genius in the topic and our language.
She was my teacher in much of this topic--her passing was a terrible loss.
This "program" was forseen at least two and probably three years ago by several commenters at CR and elswhere.
The lenders have been stuffing Fan and Fraud with toxic crap like a Xmas goose. Some of it is now being put back to them--but if they can re-originate the mortgage in conformance with these "new standards" it will go to the GSE's who happen to have a seat at the "no loss limit" table--with us picking up the losses.

[flintlock]

Re: Government-backed liar loans

Perhaps you could provide some evidence to what you are saying.

Cindy

[MEDIA][/MEDIA]

[c1ue]

Re: Government-backed liar loans

Perhaps you could provide some evidence to what you are saying.

Please refer to Japan - 1992 to present.

Contrast with Sweden.

[mickeyc21]

Re: Government-backed liar loans

That is truly amazing.

[John_42]

Re: Government-backed liar loans

Sorry my vote goes with the camp that says the banks are not doing this out of the goodness of their hearts; their looking for the quick cash in the processing fees.

But the real enemy appears to be Freddie and Fannie. No one in this thread has brought up the issue of converting mortgages from non-recourse into recourse loans. Unfortunately I have lost my link to an anti-establishment mortgage broker's website, where he describes the new structure of the "loans to save the homeowner" and he was screaming stay away because they often required you to sign the mortgage as a recourse loan (no walking away). In fact he suggested there was a possibility that the loan could follow you even after personal bankruptcy.

This site also makes the same point - http://www.nakedcapitalism.com/2009/...e-125-ltv.html

"First, in most states, a purchase money mortgage is non-recourse, but a refi is. So some borrowers will put themselves in worse shape it they take up this offer.'

Is this the return of indentured servitude?

[bill]

Re: Government-backed liar loans

Sorry my vote goes with the camp that says the banks are not doing this out of the goodness of their hearts; their looking for the quick cash in the processing fees.

But the real enemy appears to be Freddie and Fannie. No one in this thread has brought up the issue of converting mortgages from non-recourse into recourse loans. Unfortunately I have lost my link to an anti-establishment mortgage broker's website, where he describes the new structure of the "loans to save the homeowner" and he was screaming stay away because they often required you to sign the mortgage as a recourse loan (no walking away). In fact he suggested there was a possibility that the loan could follow you even after personal bankruptcy.

This site also makes the same point - http://www.nakedcapitalism.com/2009/...e-125-ltv.html

"First, in most states, a purchase money mortgage is non-recourse, but a refi is. So some borrowers will put themselves in worse shape it they take up this offer.'

Is this the return of indentured servitude?

http://www.itulip.com/forums/showthr...50050#poststop

[FRED]

Re: Government-backed liar loans

Sorry my vote goes with the camp that says the banks are not doing this out of the goodness of their hearts; their looking for the quick cash in the processing fees.

But the real enemy appears to be Freddie and Fannie. No one in this thread has brought up the issue of converting mortgages from non-recourse into recourse loans. Unfortunately I have lost my link to an anti-establishment mortgage broker's website, where he describes the new structure of the "loans to save the homeowner" and he was screaming stay away because they often required you to sign the mortgage as a recourse loan (no walking away). In fact he suggested there was a possibility that the loan could follow you even after personal bankruptcy.

This site also makes the same point - http://www.nakedcapitalism.com/2009/...e-125-ltv.html

"First, in most states, a purchase money mortgage is non-recourse, but a refi is. So some borrowers will put themselves in worse shape it they take up this offer.'

Is this the return of indentured servitude?

We have had many threads here warning readers about this since Oct. 2008. For example:

Appalling discovery about US housing policy, Oct. 2008

Big Banks Pull off The Ultimate Bait & Switch, March 2009