Mortgage Lies and Truths

[sdrealtor]

Hey Josh,
Been to Jamul lately;)
sdr

[cr]

Okay, okay, conspiracy theories are just that, theories. You have to wonder though if things like this aren’t strings being pulled by big brother.

But this thread needs some humor, and given that fortune seems to favor the reckless these days, I have decided to revise my home buying strategy, that will simultaneously be research to answer my own questions:

– Buy 4 houses loans all at the exact same time so the credit checks don’t show
– One a 15yr fixed, one an IO, one an ARM, and one a NEG AM
– Refinance them as they reset, take out the equity I will surely have (we hit bottom, right?)
– Buy a vacation home, take a vacation, buy a yellow H2, BMW, and a 92″ plasma screen for my yellow H2
– Quit working, and open a franchise
– File for bankruptcy, hire a lawyer, sue for predatory lending, and sit in my 4 houses while miles or red tape unfold, and all the lenders give me money to pay for the lifestyle I couldn’t otherwise afford.

Ah, the American Dream.

*DISCLAIMER*
the actions, words, opinions, heresay, and theresay represented in this post are fictional. Any correlation to real persons, places, or things, living, dead, or re-incarnated are striclty coincidental and should not be taken as slandering, offense, flaming, or grounds for legal action.

[cr]

Okay, okay, conspiracy theories are just that, theories. You have to wonder though if things like this aren’t strings being pulled by big brother.

But this thread needs some humor, and given that fortune seems to favor the reckless these days, I have decided to revise my home buying strategy, that will simultaneously be research to answer my own questions:

– Buy 4 houses loans all at the exact same time so the credit checks don’t show
– One a 15yr fixed, one an IO, one an ARM, and one a NEG AM
– Refinance them as they reset, take out the equity I will surely have (we hit bottom, right?)
– Buy a vacation home, take a vacation, buy a yellow H2, BMW, and a 92″ plasma screen for my yellow H2
– Quit working, and open a franchise
– File for bankruptcy, hire a lawyer, sue for predatory lending, and sit in my 4 houses while miles or red tape unfold, and all the lenders give me money to pay for the lifestyle I couldn’t otherwise afford.

Ah, the American Dream.

*DISCLAIMER*
the actions, words, opinions, heresay, and theresay represented in this post are fictional. Any correlation to real persons, places, or things, living, dead, or re-incarnated are striclty coincidental and should not be taken as slandering, offense, flaming, or grounds for legal action.

[JWM in SD]

“Short the shit out of LEND and CFC and laugh when the market dictates that lots of these loans are bad.”

Yes, and I did too. Angelo will buy me a new G35 soon.

[JWM in SD]

“Short the shit out of LEND and CFC and laugh when the market dictates that lots of these loans are bad.”

Yes, and I did too. Angelo will buy me a new G35 soon.

[NotCranky]

The answer to today’s question on this thread “Why are mortgage brokers pushing interest only loans?”. Maybe this: Lenders want them to because the are conforming and also has a slight possibility of being enough to get someone into a house in California(and a commission for a mortgage broker used to dealing with greater fools). As Contraman has pointed out on two threads, several lenders are demanding conforming loans. Fannie mae has guidelines for interest only loans that meet the conforming standards and also hold any hope for actually getting someone in California into a house.They have long interest only periods like the type being talked about on this thread. The question now lingers, are these lenders offering incentives to Mortgage brokers to originate this loan?

[NotCranky]

The answer to today’s question on this thread “Why are mortgage brokers pushing interest only loans?”. Maybe this: Lenders want them to because the are conforming and also has a slight possibility of being enough to get someone into a house in California(and a commission for a mortgage broker used to dealing with greater fools). As Contraman has pointed out on two threads, several lenders are demanding conforming loans. Fannie mae has guidelines for interest only loans that meet the conforming standards and also hold any hope for actually getting someone in California into a house.They have long interest only periods like the type being talked about on this thread. The question now lingers, are these lenders offering incentives to Mortgage brokers to originate this loan?

[Arraya]

RE: “Why mortgage brokers push I/O loans”

I think the answer is simple.

I/O is what the customer chooses the vast majority of the time. When a salesman relizes what his big seller is he pushes it.

Granted most people selling these products have no knowledge of them beside what products sell but that is another discussion.

Also, the reason lenders are pushing conforming loans is because they do not know if anything else will sell on the secondary market and do not want to get stuck with a loan. So the incentive is to stay in business.

[Arraya]

RE: “Why mortgage brokers push I/O loans”

I think the answer is simple.

I/O is what the customer chooses the vast majority of the time. When a salesman relizes what his big seller is he pushes it.

Granted most people selling these products have no knowledge of them beside what products sell but that is another discussion.

Also, the reason lenders are pushing conforming loans is because they do not know if anything else will sell on the secondary market and do not want to get stuck with a loan. So the incentive is to stay in business.

[Author]

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