Anybody in the lending biz?

"Federal authorities announced the indictment of hundreds of housing developers, mortgage lenders and brokers, lawyers, real estate agents and appraisers around the country, while two Wall Street fund managers who sold mortgage-backed investments were arrested in a separate but related case.

"This operation is an example of our unified commitment to address this significant crime problem," FBI Director Robert Mueller told reporters at a press conference. "The FBI will continue to direct investigative and analytic resources towards mortgage fraud and corporate securities fraud that threaten our nation's economy."

The investigation is ongoing and also involves some 19 companies involved in mortgage lending, Mueller said. But Thursday's announcements underscored that the wave of mortgage fraud that swamped the housing industry and credit markets in the past few years was not the work of a few isolated bad actors.

"It makes clearer that the causes of the credit problems are very broad-based and can't be put at the feet of one player,"? said Mark Zandi, senior economist at Moody's Economy.com. "And that everyone was involved to some degree or another "? borrower, lender, investment banker "? all the way top to bottom."?
http://www.msnbc.msn.com/id/25269190/

Money changers, what will they think of next? We had a group come in and offer to "help " with our 401k for the small fee of .5% of the total account for each year. Any idiot could do better than their track record. Best thing they can show is a 10% increase for one option over 10 years. Looks like they might be running out of "my" funds to invest.
Lendors and speculators are right behing the Dems and Reps in killing the middle class.

[UTVols2]

Some of these off the wall lenders and fly-by-night mortgage companies that have popped up during the refinance boom a couple of years back are slowly but surely getting caught and punished for the illegal practices that they were using. I hope they can bring down half of the crooked brokers, layers, agents, and appraisers who have caused a lot of the problems that most people are going thru today with foreclosure. They let their "customers" overextend themselves just to make a loan, knowing they could barely afford it to begin with, now that our economy is in the situation it is in, people have just buckled under the crunch and millions are now losing their homes left and right. Don't get me wrong, people should know their own limitations but a good repuatable loan officer or bank should always look out for their customers over making a loan.

[BlueWahooChambordDevil]

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: UTVols2</div><div class="ubbcode-body">Some of these off the wall lenders and fly-by-night mortgage companies that have popped up during the refinance boom a couple of years back are slowly but surely getting caught and punished for the illegal practices that they were using.</div></div>
first off it wasnt just the smaller lenders and secondly much of it wasnt illegal......just not smart

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">I hope they can bring down half of the crooked brokers, layers, agents, and appraisers who have caused a lot of the problems that most people are going thru today with foreclosure.</div></div>
at what point do the borrowers have to take responsibility?

if you are ignorant enough to claim you didnt know what type of loan you had.......then frankly you dont deserve to own a home to begin with

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">They let their "customers" overextend themselves just to make a loan, knowing they could barely afford it to begin with, now that our economy is in the situation it is in, people have just buckled under the crunch and millions are now losing their homes left and right.</div></div>
wrong.......banks gave borrowers what they wanted......its a business so they all offered similar programs to be competitive

the problem is that ARMs had rates 1/2 to a full point less than fixed rates........the choices were made by the borrowers to take the lesser rate thinking they could refi in 2 or 3 years and get a better rate than what they had

rates went up and they no longer qualified for a loan

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Don't get me wrong, people should know their own limitations but a good repuatable loan officer or bank should always look out for their customers over making a loan.</div></div>
you do realize that countrywide is the biggest lender in the country and was the innovator in offering many of these hybrid loan programs that have lead to the most trouble for people

[UTVols2]

Yeah, I completely understand all of what you are saying but trust me, "most" people don't know what they are getting into and that is when a good loan officer comes into play that can explain to these people what they are getting into. I can tell you that 95% of all people who sit down and take out a deed of trust don't read all 15-25 pages of it. Like I said, people should understand and know their own limitations but many of these lenders should have never given out most of these loans to people who didn't qualify #1 (but they did), appraiser's hit these astronomical figures to help the people get the loan #2 (which they shouldn't have).

Now some of these banks are getting it in the arse now because they would loan you up to 120% of the appraised value of your house (Countrywide was one of these companies). This type of program was to be utilized by people with perfect credit, but that didn't happen, they made these loans to people with less than perfect credit. That is why I like hometown banks in our area, they only loan you 80-90% of the appraised value so if you don't already have the equity in your home or you don't have a downpayment then tough tit. Plus, they save themselves because they have the lowest foreclosure rates of any type of bank and they don't eat property left and right, plus, if they do foreclose on a house, they already have 20-30% wiggle room that normally they get their money back and then some and don't get hit with a loss. These banks didn't offer those crazy rates and loan programs to be competitive and now look who is still standing and who is taking the fall, all for a quick buck, and now they are eating houses left and right and selling them at foreclosure for 20-30% less than what they have in them. These places are real smart and now half of them don't exist.

The underwriters 3-4 years ago just overlooked half of what they saw to make loans go thru and aren't near as tight as they are now, you can't get a penny between their arse cheeks now. [img]/LDPforum/ubbthreads/images/%%GRAEMLIN_URL%%/smile.gif[/img] Getting a loan now is harder than ever and should have been this way 3-4 years ago and we wouldn't be going thru half the problems we are now because they wouldn't have pushed thru loans that really should have never been finalized. So yeah, I do put most of the blame on the lenders, BUT, I do see your point about the borrowers, they should be more educated on what type of loan they are choosing and how it works.

[BlueWahooChambordDevil]

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Yeah, I completely understand all of what you are saying but trust me, "most" people don't know what they are getting into and that is when a good loan officer comes into play that can explain to these people what they are getting into. I can tell you that 95% of all people who sit down and take out a deed of trust don't read all 15-25 pages of it. Like I said, people should understand and know their own limitations but many of these lenders should have never given out most of these loans to people who didn't qualify #1 (but they did), appraiser's hit these astronomical figures to help the people get the loan #2 (which they shouldn't have).</div></div>
i dont have to read beyond this........if you dont read what you are signing then you are a fool

bottom line

if you choose not to read what you sign.......you deserve everything that you get

if you cant be responsible for yourself why should anybody else hold you hand?

its easy for everybody to point the finger at everybody else

take responsibility for yourself

[UTVols2]

I figured that would be your response. [img]/LDPforum/ubbthreads/images/%%GRAEMLIN_URL%%/smile.gif[/img]