Countrywide made bad loans and investors made poor investment choices. It’s that simple. It’s no different than investing in a company that doesn’t perform due to poor marketing, bad product design, or better competition. Investors, homeowners, and others who have lost money are looking at everyone but themselves to blame for this crash.
I can’t tell you how many times over the last year I would receive a call fro a loan officer telling me that they “need to lower the premium price on the fire policy” since it was kicking the borrower out of qualification due to their debt to income ratio. We aren’t talking large numbers here either. Sometimes it was literally a matter of $20-$30 a month in premium that was disqualifying the borrower. I told those loan officers “If the borrower has such a tight D to I ratio that $20/month disqualifies them, they shouldn’t be buying the house. Besides the premium is what it is and is non-negotiable”
Practices like that definitely helped facilitate the mortgage crisis and the borrowers shuld be held just as accountable for the mess they now find themselves in as the loan officers who worked the numbers to allow people to buy significantly more home than they could realistically afford to buy.
The other issue is that the financing companies pushed the appraiser to either give an inflated number on the property or just used those appraisers who would cave. This has been a serious problem on the refinancing of ARMs.
Great point DB. We have also rec’d calls asking us to send the “paid binder” for the insurance to the mortgage broker but then asked, by the mortgage broker, to hold the customers check for the insurance payment for 2-3 weeks. Of course we would not comply with this. The person was buying a house and basically had no money. It happened more than once and we quickly eliminated these brokers from our referral sources.
Other than driving home prices back down to where they should be, this downturn in home sales has also done some good by purging the marketplace of some very poor mortgage & real estate brokers.
The fact is the exhorbitant cost of housing is unreachable for most of the country. There is no more ‘American Dream’ but an ‘American Nightmare’ all due to greed. American families are being financially raped for a place to live. Investors, banks, etc. all know how difficult the economy is in this country and greed has just taken over. The only thing that many people think about is how to make money off of people that can’t even afford to pay for rent, never mind to buy a home.
The per capita income in this country is approximately $25,000 according to HUD. So in essence that means that it takes 2 incomes of $25,000 to qualify for a home and all of those “alleged affordable housing developments” only cater to middle income people.
There is presently a 10 year plan to end homelessness. That’s why each city and town is supposed to develop 10% for housing. But these developments are not designed to help the homeless, but the developer, investor, bank, etc.
This country could care less that there are families being evicted by judges to be thrown in the street because they can’t afford to pay rent on $17,000-$25,000. How can single people and extremely low income households afford to live in this country when there is only one household income.
The national average for 1-2 people is $34,000 for bare necessities excluding vacations, birthdays, etc. So how are people supposed to subsist on even $25,000?
Since President Clinton signed NAFTA over 10 years ago, factories have fled the country to give the jobs of the American people over to foreigners causing people to loose their livilihood. These people have to now work 2 jobs to make up for the one job that they made $17 per hour for.
Now I know why some countries don’t like Capitalism. It leaves out a lot of the population to get ahead or be fair and equal and contributes to poverty.
Housing is the top expense, the second is car insurance. In Massachusetts, we are monetarily raped by not only paying 6 years as a form of punishment, but all businesses overcharge us. Where are all the government officials who are supposed to be protecting us?
It makes me sick. I am paying almost $1,900 to Commerce Insurance Company for a 1993 Toyota Camry. I have been paying $100’s of dollars as a form of punishment for one accident that occurred in 2002, then when the step system changed in 2006, I was still paying the already 100’s of dollars set by the step program, but was charged additionally by the new point system, increasing my insurance by $750 instead of 1/2 that for a minor accident that occurred in 2006 that Commerce paid out only $500 after the deductible.
I had no accident in a 3 year period of 1, 2003, 2004, 2005, they deducted a point in 2005, then put the point back on because of the minor accident that occurred in 2006 and then added 3 more points of punishment for the minor accident that occurred in 2006.
When I complained to the Division of Insurance, all they did was regurgitate the information that was given to them by Commerce without doing an investigation by clearly looking at paperwork. Commerce fraudulently told the Division of Insurance that I had a ‘sticker violation’in 2005 or 2006 that’s why they put the point back on. It’s a lie!
Commerce has a Cares Van on Rte 93 that gives free service to the state of Massachusetts…..hmmmmm.
Do I have to sue to get justice? Well, even if I do, I have seen corruption in this arena.
What is going on in our country? We are no better than those communist countries if we are just as corrupt and don’t enforce the law.
People need to get proactive and fight against fraud, corruption and abuse of power!
I am a single Mom with 2 teenagers and I get absolutely no child support from my ex-husband. My children and I live in a nice home and I drive a 4 year old car. I don’t have a college degree though I attended college for 2 1/2 years. I had to quit because going to school and working was to physically demanding. My first job began 7 days after I turned 15 years old. I’ve worked as many as 4 jobs at a time plus attended college. I have a 30-year fixed rate mortgage though I was offered options by my broker. I warned many of my friends who opted for other financial products/mortgages the down-side to their selections. They did not listen and opted to buy $300k – $400k homes versus my $200k home. Eight of my friends opted for interest only/adjustable rates…only 3 of them currently still own their homes. One of my friends sold her house successfully and returned to apartment living. The other 4 have either lost their homes to foreclosure or are currently in the process. I find it heartbreaking to see my friends in this position. I don’t know the answer but I did see this coming. I have a difficult time (with my limited exposure to the market) to believe investors could not predict this situation. They rode the market available as long as it was profitable. If they are willing to surrender their profits then they should be permitted to pursue litigation. If not, then they should hang their head in shame for these efforts.
As a single mom, who has never received child support and no college education I really have to say a couple of things. 1. People need to start being responsible for their own actions and decisions in life. We are all in charge of our own life and decisions, stop blaming others for your lot in life. Its your life and YOU are in charge of it.
2. Yes, the corporate world is/can be greedy….is that something new? DUH!
Denise-You kind of come across like a professional victim-the type of person who isn’t responsible for anything, but “everyone” from the government to big corporations to insurance companies have it out for the “working poor” and you all need to be protected. I have the same problem with my kids. I teach them that they and only they are responsible for how well they do in this world. They all tell me that I’m too hard on them and their parents aren’t like that. Well, it is a tough world and if you have to go through life looking for someone to take care of you, then you will indeed have a hard life and not one that is rich and robust and fufilling.
You should be ashamed of yourselves for not wanting to hold people accountable for unethical behavior. Read Mass General Laws chapter 268a on the conflict of interest laws and there are manyn laws regulating the business behaviors that affect people. I’m proud of all of you single moms, maybe you are martyrs, but some people certainly could care less what goes on in our country and that is why there is so much corruption. We all need to take a pro-active attitude about what is going on. What happened to accountability for ones’ behavior especially when what we do affects other people’s lives. Do you live in New Hampshire? Live and let live, but they really don’t practice what they preach? What are we teaching the upcomeing generation about morals and values and ethics in business?
We all need to be more informed it seems about what is right and wrong. It seems to be ok that businesses and government can hurt another person and not even flinch when they destroy someone.
Why do you suspect there are laws and regulations governing business? DUH!
You sound like an ‘I don’t give a ______” person. You obviously don’t goive back to your community. It’s not about handouts. It’s about reality and it seems you don’t live in reality and are under the assumption that everybody is like you. If you were able to make it, why don’t you give back to your community by showing them how to access what you did when you were poor. In those days, they probably didn’t give tests or whatever it took for you to get what you have. You obviously don’t care about people, you sound like a greedy, selfish person.
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Countrywide made bad loans and investors made poor investment choices. It’s that simple. It’s no different than investing in a company that doesn’t perform due to poor marketing, bad product design, or better competition. Investors, homeowners, and others who have lost money are looking at everyone but themselves to blame for this crash.
I can’t tell you how many times over the last year I would receive a call fro a loan officer telling me that they “need to lower the premium price on the fire policy” since it was kicking the borrower out of qualification due to their debt to income ratio. We aren’t talking large numbers here either. Sometimes it was literally a matter of $20-$30 a month in premium that was disqualifying the borrower. I told those loan officers “If the borrower has such a tight D to I ratio that $20/month disqualifies them, they shouldn’t be buying the house. Besides the premium is what it is and is non-negotiable”
Practices like that definitely helped facilitate the mortgage crisis and the borrowers shuld be held just as accountable for the mess they now find themselves in as the loan officers who worked the numbers to allow people to buy significantly more home than they could realistically afford to buy.
The other issue is that the financing companies pushed the appraiser to either give an inflated number on the property or just used those appraisers who would cave. This has been a serious problem on the refinancing of ARMs.
Great point DB. We have also rec’d calls asking us to send the “paid binder” for the insurance to the mortgage broker but then asked, by the mortgage broker, to hold the customers check for the insurance payment for 2-3 weeks. Of course we would not comply with this. The person was buying a house and basically had no money. It happened more than once and we quickly eliminated these brokers from our referral sources.
Other than driving home prices back down to where they should be, this downturn in home sales has also done some good by purging the marketplace of some very poor mortgage & real estate brokers.
The fact is the exhorbitant cost of housing is unreachable for most of the country. There is no more ‘American Dream’ but an ‘American Nightmare’ all due to greed. American families are being financially raped for a place to live. Investors, banks, etc. all know how difficult the economy is in this country and greed has just taken over. The only thing that many people think about is how to make money off of people that can’t even afford to pay for rent, never mind to buy a home.
The per capita income in this country is approximately $25,000 according to HUD. So in essence that means that it takes 2 incomes of $25,000 to qualify for a home and all of those “alleged affordable housing developments” only cater to middle income people.
There is presently a 10 year plan to end homelessness. That’s why each city and town is supposed to develop 10% for housing. But these developments are not designed to help the homeless, but the developer, investor, bank, etc.
This country could care less that there are families being evicted by judges to be thrown in the street because they can’t afford to pay rent on $17,000-$25,000. How can single people and extremely low income households afford to live in this country when there is only one household income.
The national average for 1-2 people is $34,000 for bare necessities excluding vacations, birthdays, etc. So how are people supposed to subsist on even $25,000?
Since President Clinton signed NAFTA over 10 years ago, factories have fled the country to give the jobs of the American people over to foreigners causing people to loose their livilihood. These people have to now work 2 jobs to make up for the one job that they made $17 per hour for.
Now I know why some countries don’t like Capitalism. It leaves out a lot of the population to get ahead or be fair and equal and contributes to poverty.
Housing is the top expense, the second is car insurance. In Massachusetts, we are monetarily raped by not only paying 6 years as a form of punishment, but all businesses overcharge us. Where are all the government officials who are supposed to be protecting us?
It makes me sick. I am paying almost $1,900 to Commerce Insurance Company for a 1993 Toyota Camry. I have been paying $100’s of dollars as a form of punishment for one accident that occurred in 2002, then when the step system changed in 2006, I was still paying the already 100’s of dollars set by the step program, but was charged additionally by the new point system, increasing my insurance by $750 instead of 1/2 that for a minor accident that occurred in 2006 that Commerce paid out only $500 after the deductible.
I had no accident in a 3 year period of 1, 2003, 2004, 2005, they deducted a point in 2005, then put the point back on because of the minor accident that occurred in 2006 and then added 3 more points of punishment for the minor accident that occurred in 2006.
When I complained to the Division of Insurance, all they did was regurgitate the information that was given to them by Commerce without doing an investigation by clearly looking at paperwork. Commerce fraudulently told the Division of Insurance that I had a ‘sticker violation’in 2005 or 2006 that’s why they put the point back on. It’s a lie!
Commerce has a Cares Van on Rte 93 that gives free service to the state of Massachusetts…..hmmmmm.
Do I have to sue to get justice? Well, even if I do, I have seen corruption in this arena.
What is going on in our country? We are no better than those communist countries if we are just as corrupt and don’t enforce the law.
People need to get proactive and fight against fraud, corruption and abuse of power!
I am a single Mom with 2 teenagers and I get absolutely no child support from my ex-husband. My children and I live in a nice home and I drive a 4 year old car. I don’t have a college degree though I attended college for 2 1/2 years. I had to quit because going to school and working was to physically demanding. My first job began 7 days after I turned 15 years old. I’ve worked as many as 4 jobs at a time plus attended college. I have a 30-year fixed rate mortgage though I was offered options by my broker. I warned many of my friends who opted for other financial products/mortgages the down-side to their selections. They did not listen and opted to buy $300k – $400k homes versus my $200k home. Eight of my friends opted for interest only/adjustable rates…only 3 of them currently still own their homes. One of my friends sold her house successfully and returned to apartment living. The other 4 have either lost their homes to foreclosure or are currently in the process. I find it heartbreaking to see my friends in this position. I don’t know the answer but I did see this coming. I have a difficult time (with my limited exposure to the market) to believe investors could not predict this situation. They rode the market available as long as it was profitable. If they are willing to surrender their profits then they should be permitted to pursue litigation. If not, then they should hang their head in shame for these efforts.
As a single mom, who has never received child support and no college education I really have to say a couple of things. 1. People need to start being responsible for their own actions and decisions in life. We are all in charge of our own life and decisions, stop blaming others for your lot in life. Its your life and YOU are in charge of it.
2. Yes, the corporate world is/can be greedy….is that something new? DUH!
Denise-You kind of come across like a professional victim-the type of person who isn’t responsible for anything, but “everyone” from the government to big corporations to insurance companies have it out for the “working poor” and you all need to be protected. I have the same problem with my kids. I teach them that they and only they are responsible for how well they do in this world. They all tell me that I’m too hard on them and their parents aren’t like that. Well, it is a tough world and if you have to go through life looking for someone to take care of you, then you will indeed have a hard life and not one that is rich and robust and fufilling.
You should be ashamed of yourselves for not wanting to hold people accountable for unethical behavior. Read Mass General Laws chapter 268a on the conflict of interest laws and there are manyn laws regulating the business behaviors that affect people. I’m proud of all of you single moms, maybe you are martyrs, but some people certainly could care less what goes on in our country and that is why there is so much corruption. We all need to take a pro-active attitude about what is going on. What happened to accountability for ones’ behavior especially when what we do affects other people’s lives. Do you live in New Hampshire? Live and let live, but they really don’t practice what they preach? What are we teaching the upcomeing generation about morals and values and ethics in business?
We all need to be more informed it seems about what is right and wrong. It seems to be ok that businesses and government can hurt another person and not even flinch when they destroy someone.
Why do you suspect there are laws and regulations governing business? DUH!
You sound like an ‘I don’t give a ______” person. You obviously don’t goive back to your community. It’s not about handouts. It’s about reality and it seems you don’t live in reality and are under the assumption that everybody is like you. If you were able to make it, why don’t you give back to your community by showing them how to access what you did when you were poor. In those days, they probably didn’t give tests or whatever it took for you to get what you have. You obviously don’t care about people, you sound like a greedy, selfish person.