I don't like this at all

What good did clinton do anyway? Hell, what good has any of our presidents done in the last 50 years?

 

As usual, the reality escapes the masses because no one likes to hear the truth...therefore, make up the story about the poor and the Government FORCING BANKS to give money aha, yep....story like that keeps everybody pointing fingers at everybody else whilst the real engineers of this mess escape to stick it to us again.

Sorry people but I have been in the Mortgage Industry for 15 years working at Wells Fargo, Chase, Countrywide, IndyMac, Bank of America...and if there is one thing that NO ONE can say is that anyone FORCED any bank to loan to money anyone that did not qualify.

If anyone EVER tells you different they are either,
A. FULL of CRAP
B. Outright lying to you to promote their agenda
C. Plain Ignorant
D. One of the people that really responsible for defrauding the bank
C. All of the above.

F.Y.I...
#1. Fannie Mae and Freddie Mac do not deal in exotic mortgages nor do they lend money for homes that are above the median income. So when you see people that got loans with no proof of income documentation, or loans above
above the median amount for the City they were in, or loans with variable rates....THESE LOANS were not Fannie and Freddie...THESE EXOTIC LOANS WERE WALL STREET LOANS.
More Specifically...they were AIG, Goldman Sachs, Bear Sterns, Lehman Bros, Credit Suisse, etc...
#2. If someone got a loan for 850K with 35 K down (obviously NOT FANNIE OR FREDDIE because they don't lend anywhere near that much), either a- they fudged the income documentation (committed fraud), b- they got a "pick a pay" exotic mortgage with an adjustable rate mortgage, c-all of the above...but it sure wasn't because a bank was FORCED to do it.

#3. The VAST MAJORITY (Greater than 63%) of the foreclosures you hear and see are not the primary residence of some "po folk"living beyond their means. No Sirreeee...the vast majority of these toxic assets are from Middle Class and Upper Class investors that were trying to "flip this house'" , you know, like the TV show. Nothing wrong with that right? RIGHT! EXCEPT....WHEN YOU COMMIT FRAUD TO DO IT.
Let me Splain Lucy...You see the way that everyone was going about doing these flips was by using programs that were designed for people that did not have the traditional 20 or 30% down payment required towards the purchase of their PRIMARY RESIDENCE but that had proof of stable income and whose housing expense ratios did not exceed 35%. This was and remains the standard guideline today. The problems arose when Mortgage Brokers made it easy for an INVESTOR to buy 2, 3, 4, 5, etc..INVESTMENT PROPERTIES with NO MONEY DOWN, by using programs that were designed for PRIMARY RESIDENCE ONLY. The Mortgage Brokers would send mortgage loan applications to several banks at the same time. (This would make it impossible for the Banks to know that they had applied at another bank for another loan on another property as the INQUIRY from another lender would not show up on the Investor's Credit report for another 90 days. By the time it showed up on the credit report it was too late because the deal had been closed and in many cases the property had already been resold for profit. The investor in many many instances never even had to make their first payment on the mortgage because the property was sold usually within the first 30 days) That all came to a crash when prices got so inflated that these investors had too much inventory and all of a sudden had to make payments on these investment properties. $$$ Many had to make "late" payments...Late payments create flags on the loans.... which in turn forces the Loan Servicer to downgrade the quality of the loan... which in turn forces the bank to buy the loan back from the WALL STREET INVESTOR (HEDGE FUND). Multiply the above 9 million times a year (which equals 1/8th the average amount of total Mortgages originated each year...roughly 72 Million a year for the last 6 years.)

As if that was not enough, to really make the shit hit the fan,from 2002 through late 2006, loans such as;
NINA (as in No Income No Asset Loans)
No Doc (as in NO DOCUMENTATION Loans...Nada! Name and Address was all you need provided you had a Credit Score above 620!
PICK A PAYMENT Loans...These were SUPER EXOTICS aimed at California Homes with their large loan amounts..example, you could buy a 600,000.00 home and for the first 2 years make a NEGATIVE AMORTIZATION PAYMENT as low as $2100. GOD help you after the first 2 years the payment would more than triple...so you were forced to refinance in order to afford the home.
These types of loans made it extremely easy to obtain loans if you had decent credit as there was no need to verify anything. The incentive for the Mortgage Broker was as high as 5% of the loan amount (points) to sell one of these WALL STREET EXOTICS with rates as high as 11 to 13%.
5% of 300,000.00 EQUALS A $15,000 KICKBACK FROM THE LENDER TO THE BROKER IN ADDITION TO THE BROKERS FEES WHICH COULD BE ANY WHERE FROM 2 TO 10% ADDITIONAL... Anybody still believe that the Slick People were the borrowers when the average transaction would net the average Mortgage Broker 20 to 30 K?

Wall Street Investors and the whole CNBC, FOX Business, Bloomberg crowd, will keep blaming the masses including Fannie and Freddie so that they can continue to create and market these EXOTIC Mortgages from which I STILL Have all the marketing literature and guidelines showing exactly WHO was the Creator and Owner of these Hedge Funds. Is it any wonder that they DON'T WANT TO BE REGULATED SO THAT THEY CONCOCT another way to scam us while they make their Billion Dollar Fortunes?

As long as we keep pointing fingers at each other...they will keep laughing all the way to the bank with our money.