The Mortgage Banking Meltdown; Illustrated (3min.)

[LargoWinch]

This clip does a pretty good job at explaining how real estate brokers helped bring the system down:

(Runtime: 2:54min)

[grapejelly]

Re: The Mortgage Banking Meltdown; Illustrated (3min.)

great find, thank you!

[LargoWinch]

Re: The Mortgage Banking Meltdown; Illustrated (3min.)

great find, thank you!

You're welcome grapejelly.

I am glad to contribute to make iTulip the best investment website on this side of milky way...

[SeanO]

Re: The Mortgage Banking Meltdown; Illustrated (3min.)

This clip does a pretty good job at explaining how real estate brokers helped bring the system down:

No offense, but I find the clip to be terribly naive. Do you really believe it was those evil brokers that started this? They may have been the ones promoting things like teaser rates, but they didn't CREATE those products, or the deregulation that enabled them. We need to give credit where credit is due and this honor belongs to major bank and Wall St execs, not brokers. For example, in the video below Dick Kovacevich, Chairman of Wells Fargo, brags about his years of hard work to bring about sufficient deregulation to enable the "banking innovations" that made this whole mess possible. Turns out the first business principal he learned as the manager of a produce department was "sell it or smell it" - sounds like securitization in a nutshell to me. ;-)

[LargoWinch]

Re: The Mortgage Banking Meltdown; Illustrated (3min.)

No offense, but I find the clip to be terribly naive.

SeanO, no offense taken.

I agree: the mortgage meltdown is a lot more complex (thats is why I read iTulip to help me out). However, the change in behavior from one participant in the system, namely the mortgage brokers, is explained quite effectively in this clip.

[SeanO]

Re: The Mortgage Banking Meltdown; Illustrated (3min.)

SeanO, no offense taken.

I agree: the mortgage meltdown is a lot more complex (thats is why I read iTulip to help me out). However, the change in behavior from one participant in the system, namely the mortgage brokers, is explained quite effectively in this clip.

I just try to remind folks that mortgage brokers are just sales reps. They really didn't change behaviour at all. Like all good sales reps they have always aggressively sold whatever products they are offered. All of the changes this video blamed brokers for were created upstream, by major banks and wall st. That is what I meant by naive.

[raja]

Re: The Mortgage Banking Meltdown; Illustrated (3min.)

I just try to remind folks that mortgage brokers are just sales reps. They really didn't change behaviour at all. Like all good sales reps they have always aggressively sold whatever products they are offered. All of the changes this video blamed brokers for were created upstream, by major banks and wall st. That is what I meant by naive.

Yeah . . . just like a used car salesman is not responsible for selling you a heap of junk.

What about the falsification of reported incomes and other frauds? Was that not perpetrated by the mortgage brokers?

[LargoWinch]

Re: The Mortgage Banking Meltdown; Illustrated (3min.)

They [Mortgage brokers] really didn't change behaviour at all.

Even with a few beers in me on a Saturday night, I cannot come around and agree with this statement: this is simply untrue.

[SeanO]

Re: The Mortgage Banking Meltdown; Illustrated (3min.)

Yeah . . . just like a used car salesman is not responsible for selling you a heap of junk.

What about the falsification of reported incomes and other frauds? Was that not perpetrated by the mortgage brokers?

The stated income products that were created on wall st often expressly told the mortgage brokers not to document or verify income. I'm not saying brokers weren't a party to the whole deal, but you give them FAR, FAR, FAR, too much credit if you think they were the ones behind it.

[SeanO]

Re: The Mortgage Banking Meltdown; Illustrated (3min.)

Even with a few beers in me on a Saturday night, I cannot come around and agree with this statement: this is simply untrue.

They have always, and will continue to always, aggressively promote the products they are provided. The only thing that changed was the products they were provided.