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But that does not make any sense, why would a bank purposefully make bad loans that the borrower could not pay back. That would mean that they lose money and go out of business. Oh wait,
They purchase those loans and assume 100 percent of all the risk while the banks do nothing more than reap the profits. And you are claiming that they are not the problem? How blind.Fannie, the Federal National Mortgage Association, and Freddie, the Federal Home Loan Mortgage Corp., don't lend money, to minorities or anyone else, however. They purchase loans from the private lenders who actually underwrite the loans.
The system is asinine and Fanny/Freddie are the central cause to the crash. It was not really even because of the bad practices. That was nothing more than a symptom of the real problem they assumed risk while the lenders reaped the rewards. When you allow politicians to play politics with the nations capital through these massive institutions and then assume all the risk for the banks what the hell do you think is going to happen. Take the government institution out of the mess and banks would have to assume their OWN risk. How many bad loans do you think are going to be underwritten then? How many institutions are going to purchase toxic assets?
Then, of course, just to top everything off those same banks get bailed out after they sell so many bad loans that they entire system comes crashing down.
WRONG...try to pay attention, or get an adult to explain it to you.
Private-Label Mortgage Backed Securities
Private-label mortgage backed securities are securitized mortgages that do not conform to the criteria set by the Government Sponsored Enterprises Freddie Mac, Fannie Mae and Ginnie Mae. The mortgages that make up these securities do not have the backing of the government and as a result carry a significantly greater risk. Below is a diagram that represents the types of mortgages that would not classify as GSE conforming loans.
]
It's Zeke, fucking drunk ignorant moron of USMB.I was a mortgage loan officer all during the housing collapse.
In the world of non conforming lending, borrowers were qualified at the discounted start rate on a lot of those ARMs. When the first adjustment to rate came due, some of those interest rates increased 5%. And that adjustment did cause people to default because they couldn't afford the adjusted payment.
I do agree that Clinton was at fault for the housing collapse. But for different reasons than yours I believe. Clinton should have never signed into law the Graham, Leach, Bliley Act.
What a disastrous law.
You're a fucking liar. I had a mortgage company for about 7 years. All the adjustables had caps, usually 2% a year in any direction, to prevent exactly that. Because the companies knew if they increased rates by 5% people would default.
You've never been anything but stump broke trailer park trash.
Not only are you a fucking liar rabbit, everybody know rabbits can't write.
In terms of what you claim to know about mortgages, all I can say is how fucking stupid you really are.
Look up the 2/28 non conforming ARM loan. (also known as the "Predatory Arm) The one where the start rate is a teaser and after two years (the first adjustment cycle) the rate was adjusted to the index plus full margin.
And guess what the fucking margin was rabbit. 5% or better in some cases. And guess how much some peoples rates increased you stupid fucker. 5%.
You must of been thinking about those Fannie and Freddie loans tied to a one year T bill for an index and with a decent 2.75% margin and 2/6 caps on adjustments. Those loans are not nor were they the problem loans in the mortgage meltdown. You should know this shit being in the mortgage business and all. LMAO.
The adjustment verbiage on the non conforming loan was buried in the note and IF a borrower asked and was told the truth about how much the payment and rate would change, you know what the loan officer told the borrower; don't worry about it, we will refinance you when the time comes. You would know this shit IF you ever wrote a mortgage loan in your life. And I doubt anyone would lend on your house trailer.
But the idea of someone as stupid as you running a mortgage company is really laughable.
Thanks for the grins idiot.
But that does not make any sense, why would a bank purposefully make bad loans that the borrower could not pay back. That would mean that they lose money and go out of business. Oh wait,
They purchase those loans and assume 100 percent of all the risk while the banks do nothing more than reap the profits. And you are claiming that they are not the problem? How blind.
The system is asinine and Fanny/Freddie are the central cause to the crash. It was not really even because of the bad practices. That was nothing more than a symptom of the real problem they assumed risk while the lenders reaped the rewards. When you allow politicians to play politics with the nations capital through these massive institutions and then assume all the risk for the banks what the hell do you think is going to happen. Take the government institution out of the mess and banks would have to assume their OWN risk. How many bad loans do you think are going to be underwritten then? How many institutions are going to purchase toxic assets?
Then, of course, just to top everything off those same banks get bailed out after they sell so many bad loans that they entire system comes crashing down.
WRONG...try to pay attention, or get an adult to explain it to you.
Private-Label Mortgage Backed Securities
Private-label mortgage backed securities are securitized mortgages that do not conform to the criteria set by the Government Sponsored Enterprises Freddie Mac, Fannie Mae and Ginnie Mae. The mortgages that make up these securities do not have the backing of the government and as a result carry a significantly greater risk. Below is a diagram that represents the types of mortgages that would not classify as GSE conforming loans.
]
Proving the internet makes semi educated idiots every day.
Private label MBS may or may not conform to FNMA standards. The same MBS issued by Fannie only had an implicit guarantee prior to the melt down. Barney Frank assured us the taxpayer was not on the hook for them. He lied.
But the proof is that Fannie/Freddie had to be bailed out. If their mortgages were not a problem then why did that happen?
WRONG...try to pay attention, or get an adult to explain it to you.
Private-Label Mortgage Backed Securities
Private-label mortgage backed securities are securitized mortgages that do not conform to the criteria set by the Government Sponsored Enterprises Freddie Mac, Fannie Mae and Ginnie Mae. The mortgages that make up these securities do not have the backing of the government and as a result carry a significantly greater risk. Below is a diagram that represents the types of mortgages that would not classify as GSE conforming loans.
]
Proving the internet makes semi educated idiots every day.
Private label MBS may or may not conform to FNMA standards. The same MBS issued by Fannie only had an implicit guarantee prior to the melt down. Barney Frank assured us the taxpayer was not on the hook for them. He lied.
But the proof is that Fannie/Freddie had to be bailed out. If their mortgages were not a problem then why did that happen?
Come on you fucking rabbit. You had your very own mortgage company. The answer to your question should be right there in your fuzzy head.
You look up that 2/28 predatory arm loan yet. You fucking liar.
And you prove your stupidity to think that the MBS's being sold to Fannie and Freddie had due diligence as to the quality of the loans in the portfolio. Where were the auditors in the process rabbit. You know, those people in a mortgage company charged with the responsibility to audit the closed loan files.
I thought you said you had a mortgage company? Never went through a quality control audit eh? Why am I not surprised. Fictional companies don't get audited. Do they.
It's Zeke, fucking drunk ignorant moron of USMB.You're a fucking liar. I had a mortgage company for about 7 years. All the adjustables had caps, usually 2% a year in any direction, to prevent exactly that. Because the companies knew if they increased rates by 5% people would default.
You've never been anything but stump broke trailer park trash.
Not only are you a fucking liar rabbit, everybody know rabbits can't write.
In terms of what you claim to know about mortgages, all I can say is how fucking stupid you really are.
Look up the 2/28 non conforming ARM loan. (also known as the "Predatory Arm) The one where the start rate is a teaser and after two years (the first adjustment cycle) the rate was adjusted to the index plus full margin
And guess what the fucking margin was rabbit. 5% or better in some cases. And guess how much some peoples rates increased you stupid fucker. 5%.
You must of been thinking about those Fannie and Freddie loans tied to a one year T bill for an index and with a decent 2.75% margin and 2/6 caps on adjustments. Those loans are not nor were they the problem loans in the mortgage meltdown. You should know this shit being in the mortgage business and all. LMAO.
The adjustment verbiage on the non conforming loan was buried in the note and IF a borrower asked and was told the truth about how much the payment and rate would change, you know what the loan officer told the borrower; don't worry about it, we will refinance you when the time comes. You would know this shit IF you ever wrote a mortgage loan in your life. And I doubt anyone would lend on your house trailer.
But the idea of someone as stupid as you running a mortgage company is really laughable.
Thanks for the grins idiot.
Here is a page for a company offering a 2/28. Notice the cap is 2% for any adjustment period. Just like I wrote.
Adjustable Rate Mortgage (ARM) | Quicken Loans
Oh yeah, my specialty was B/C paper, especially for manufactured housing. I wrote hundreds of adjustables, all of them with similar caps. Our pitch was, pay this loan on time and refi in 2 years to a conforming fixed rate. But since most of our customers were shitbirds like you who couldn't keep their finances straight, they screwed themselves and couldn't refi. That's probably how you ended up in the trailer park.
It's Zeke, fucking drunk ignorant moron of USMB.Not only are you a fucking liar rabbit, everybody know rabbits can't write.
In terms of what you claim to know about mortgages, all I can say is how fucking stupid you really are.
Look up the 2/28 non conforming ARM loan. (also known as the "Predatory Arm) The one where the start rate is a teaser and after two years (the first adjustment cycle) the rate was adjusted to the index plus full margin
And guess what the fucking margin was rabbit. 5% or better in some cases. And guess how much some peoples rates increased you stupid fucker. 5%.
You must of been thinking about those Fannie and Freddie loans tied to a one year T bill for an index and with a decent 2.75% margin and 2/6 caps on adjustments. Those loans are not nor were they the problem loans in the mortgage meltdown. You should know this shit being in the mortgage business and all. LMAO.
The adjustment verbiage on the non conforming loan was buried in the note and IF a borrower asked and was told the truth about how much the payment and rate would change, you know what the loan officer told the borrower; don't worry about it, we will refinance you when the time comes. You would know this shit IF you ever wrote a mortgage loan in your life. And I doubt anyone would lend on your house trailer.
But the idea of someone as stupid as you running a mortgage company is really laughable.
Thanks for the grins idiot.
Here is a page for a company offering a 2/28. Notice the cap is 2% for any adjustment period. Just like I wrote.
Adjustable Rate Mortgage (ARM) | Quicken Loans
Oh yeah, my specialty was B/C paper, especially for manufactured housing. I wrote hundreds of adjustables, all of them with similar caps. Our pitch was, pay this loan on time and refi in 2 years to a conforming fixed rate. But since most of our customers were shitbirds like you who couldn't keep their finances straight, they screwed themselves and couldn't refi. That's probably how you ended up in the trailer park.
You want to use a loan that is offered TODAY as proof that all ARM loans ever offered had the 2/6 caps. Sure dude. Liar.
You never wrote a fucking predatory ARM loan in your life. And to claim that predatory loans were not offered and were not a problem makes you the stupidest mother fucker on the board.
Yeah!
And all you workers out there just shut the fuck up and turn to! Otherwise Mr. Businessman will fire your worthless, lazy asses.
Yeah!
And all you workers out there just shut the fuck up and turn to! Otherwise Mr. Businessman will fire your worthless, lazy asses.
Have you ever held a job with a business? I mean one that had to produce a product people want, that they are willing to spend their own money to buy?
You know, before you started with the government and joined a public employee union?
I work in a state where they dont have to give you a fucking break period. IF you work 12 hours, fuck it you still dont get a break, even if its 12 hours on your feet.
Damn right i will " whine " about that, and whine about being paid fairly. Im not salary so this honestly wont affect me, but if i was salary and working 80 hours a week you damn right i would say something. Thats time away from my family. Thats time away from other things.
Hell i was salary at point and once the hours started to go down the owner decided to go back to hourly, because salary wasnt working for him at the moment. Sure was when i was working over 40 hours a week.
According to you, you suck so badly at being an employee that you can't find a job that pays you what you think you are worth and treats you decently, and so that's on what is apparently the one guy who is willing to give you a job? Sounds like if you're that bad, you should be thanking him for keeping you. Seriously.
not really. It was a jewish bakery with a customer base he bought into and ran it into the ground. it was out of my hands, but sad. i liked that job.
the government; MOSTLY liberals; made it THE LAW that a couple of TRILLION DOLLARS-WORTH of taxpayer-backed loans be made in the name of "fairness" at sub-prime rates, to people that couldnt repay them
idiot
You have NO CLUE what you are talking about. The housing crisis was not caused by middle class citizens buying a homestead. It was caused by wealthy speculators and investors buying homes with no intent of ever living in them. When the values dropped, they dumped a 'bad investment'.
Projecting? Take a look at the epicenters of the housing crisis. They were not in random middle class neighborhoods. They were concentrated in the hot, high value markets.
...
Holy crap you're stupid. You're missing the 'why' part, numbskull. It wasn't that long ago. You don't seem to have been paying attention.
OK Einstein, list the causes?
Holy crap you're stupid. You're missing the 'why' part, numbskull. It wasn't that long ago. You don't seem to have been paying attention.
OK Einstein, list the causes?
Look, you're a hack - there is no reasoning with you, you are here to spew party idiocy.
But just too point out how fucking stupid your argument is, are you claiming that "wealthy investors" were taking ARM's and then defaulting, creating a pool of toxic MBS?
Really? You're REALLY going to toss that pile of shit and call it pudding?
Private sector loans, not Fannie or Freddie, triggered crisis
Dude, I already told you this is a strawman. No one is arguing that Fannie and Freddie directly underwrote the majority of the loans. In fact if that were the case, the Clinton administration wouldn't have had to threaten financial services companies with investigations and subpoenas to get them to relax their underwriting standards. And then the Fed flooded the market with endless virtually zero interest cash to fund it.
Your harping on this non-point doesn't even make sense in light of the discussion and the Clinton administration policy. When there were more buyers with government money, they bid up the price of housing, hence, "the bubble." And when the economy slowed down, the sub-primes got into the most, deepest and quickest trouble, housing fell and the bubble burst. The economic slowdown was global, but it was worse here because so much housing value collapsed because of Bill, Slick Willy, Clinton. Then W continued the policy.
Going back to Fannie and Freddie is still a strawman.
The economic slowdown was global, but it was worse here because so much housing value collapsed because of Bill, Slick Willy, Clinton. Then W continued the policy.
No one is arguing that Fannie and Freddie directly underwrote the majority of the loans.
DUDE, you are the one perpetrating a strawman.
The Federal Reserve Bank of St. Louis investigated whether affordable housing policies had any influence on the price or proliferation of subprime mortgages in the mid-2000s. Spoiler alert — they didn’t:
Holy crap you're stupid. You're missing the 'why' part, numbskull. It wasn't that long ago. You don't seem to have been paying attention.
OK Einstein, list the causes?
Look, you're a hack - there is no reasoning with you, you are here to spew party idiocy.
But just too point out how fucking stupid your argument is, are you claiming that "wealthy investors" were taking ARM's and then defaulting, creating a pool of toxic MBS?
Really? You're REALLY going to toss that pile of shit and call it pudding?
Have you always had a child brain, or is it just your Monica Lewinsky worship of the wealthy that is causing your stupidity?
The rich bail faster on mortgages - debt & owning a home - MSN Money
Biggest Defaulters on Mortgages Are the Rich - NY Times
Foreclosure double standard: Why the rich get away with defaulting - CSMonitor.com
More Rich People Default On Mortgages - MainStreet
Rich Borrowers More Likely to Default on Mortgage | The Truth About Mortgage.com
Foreclosures & Walking Away: 60 Minutes Eyes an Epidemic?
Biggest Defaulters on Mortgages Are the Rich
How the Foreclosure Crisis Started: Investors, Speculators, Mortgage Fraud & Lax Lending Standards All to Blame | Foreclosure News
Speculation By Investors Largely Cause Of Foreclosure Crisis | House Repos Blog
Strategic Defaults Threaten All Major U.S. Housing Markets - WORLD PROPERTY CHANNEL Global News Center
Have you always had a child brain, or is it just your Monica Lewinsky worship of the wealthy that is causing your stupidity?
The rich bail faster on mortgages - debt & owning a home - MSN Money
Biggest Defaulters on Mortgages Are the Rich - NY Times
Foreclosure double standard: Why the rich get away with defaulting - CSMonitor.com
More Rich People Default On Mortgages - MainStreet
Rich Borrowers More Likely to Default on Mortgage | The Truth About Mortgage.com
Foreclosures & Walking Away: 60 Minutes Eyes an Epidemic?
Biggest Defaulters on Mortgages Are the Rich
How the Foreclosure Crisis Started: Investors, Speculators, Mortgage Fraud & Lax Lending Standards All to Blame | Foreclosure News
Speculation By Investors Largely Cause Of Foreclosure Crisis | House Repos Blog
Strategic Defaults Threaten All Major U.S. Housing Markets - WORLD PROPERTY CHANNEL Global News Center
I know you think yourself clever, posting talking points from the hate sites as you do; but you've never actually read the shit that you post, so you don't grasp that it doesn't support your false claims:
{In this dismal housing market, homeowners with good credit and no late payments are making what appears to be a strategic decision to walk away when their home's value falls below what's owed.}
That isn't "corporations buying homes and defaulting" as you claimed, it was a unique situation where individuals were walking away from underwater loans AFTER the market collapsed.
But again, you're just a hack, a spambot from ThinkProgress.
Hey pea brain, I never said: "corporations buying homes and defaulting". AGAIN, have you always had a child brain, or is it just your Monica Lewinsky worship of the wealthy that is causing your stupidity?
WHAT I said: "if you are buying a homestead, you are making a long term commitment. You are going to seek out a mortgage along conventional lines. Were there some stupid people who got sucked in by predators...yea.
If you are a speculator, you are NOT making a long term commitment. You are going to seek out a low or no down payment 'gimmick' because you never plan on living there. You are in it to sell, make money and buy again. But the Ferris wheel stopped and these people jumped out. And a plethora of private lenders catered to these wealthy speculators."
Hey pea brain, I never said: "corporations buying homes and defaulting". AGAIN, have you always had a child brain, or is it just your Monica Lewinsky worship of the wealthy that is causing your stupidity?
WHAT I said: "if you are buying a homestead, you are making a long term commitment. You are going to seek out a mortgage along conventional lines. Were there some stupid people who got sucked in by predators...yea.
If you are a speculator, you are NOT making a long term commitment. You are going to seek out a low or no down payment 'gimmick' because you never plan on living there. You are in it to sell, make money and buy again. But the Ferris wheel stopped and these people jumped out. And a plethora of private lenders catered to these wealthy speculators."
AGAIN, the links you cut and pasted from ThinkProgress do NOT support your claims of "speculators" defaulting en masse. You don't know the material, you're just cutting and pasting from the hate sites, in hopes of baffling us with bullshit.
