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June 7, 2008 at 6:07 PM #219273June 7, 2008 at 10:05 PM #219348
HLS
ParticipantMost people have no idea how toxic these loans are.
Fortunes were made pushing them by people who didn’t understand them to borrowers who didn’t understand them.
The higher the margin a borrower was put into, the larger the commission the lender paid to the loan originator.
Compare this to a PAR rate loan, the lender doesn’t pay one penny in commission.
They tempted dishonest loan originators to overcharge the borrower and rewarded them with huge commissions.
Two of the largest neg am (POA) lenders have seen their stock price drop 80%-90% in the last 52 weeks. Another is headed that way.
June 7, 2008 at 10:05 PM #219186ParticipantMost people have no idea how toxic these loans are.
Fortunes were made pushing them by people who didn’t understand them to borrowers who didn’t understand them.
The higher the margin a borrower was put into, the larger the commission the lender paid to the loan originator.
Compare this to a PAR rate loan, the lender doesn’t pay one penny in commission.
They tempted dishonest loan originators to overcharge the borrower and rewarded them with huge commissions.
Two of the largest neg am (POA) lenders have seen their stock price drop 80%-90% in the last 52 weeks. Another is headed that way.
June 7, 2008 at 10:05 PM #219327ParticipantMost people have no idea how toxic these loans are.
Fortunes were made pushing them by people who didn’t understand them to borrowers who didn’t understand them.
The higher the margin a borrower was put into, the larger the commission the lender paid to the loan originator.
Compare this to a PAR rate loan, the lender doesn’t pay one penny in commission.
They tempted dishonest loan originators to overcharge the borrower and rewarded them with huge commissions.
Two of the largest neg am (POA) lenders have seen their stock price drop 80%-90% in the last 52 weeks. Another is headed that way.
June 7, 2008 at 10:05 PM #219280ParticipantMost people have no idea how toxic these loans are.
Fortunes were made pushing them by people who didn’t understand them to borrowers who didn’t understand them.
The higher the margin a borrower was put into, the larger the commission the lender paid to the loan originator.
Compare this to a PAR rate loan, the lender doesn’t pay one penny in commission.
They tempted dishonest loan originators to overcharge the borrower and rewarded them with huge commissions.
Two of the largest neg am (POA) lenders have seen their stock price drop 80%-90% in the last 52 weeks. Another is headed that way.
June 7, 2008 at 10:05 PM #219299ParticipantMost people have no idea how toxic these loans are.
Fortunes were made pushing them by people who didn’t understand them to borrowers who didn’t understand them.
The higher the margin a borrower was put into, the larger the commission the lender paid to the loan originator.
Compare this to a PAR rate loan, the lender doesn’t pay one penny in commission.
They tempted dishonest loan originators to overcharge the borrower and rewarded them with huge commissions.
Two of the largest neg am (POA) lenders have seen their stock price drop 80%-90% in the last 52 weeks. Another is headed that way.
June 7, 2008 at 10:51 PM #219367SD Realtor
ParticipantGuys we can only wish these pups would be recast earlier. Unfortunately the lenders have 0% vested interest in recasting these loans. Also consider the loans that have been sold and resold, it is pretty unlikely that the servicing organization even cares. Yet one never knows. I would assume that the first step any loan workout department would take for a distressed would be release the homeowner from this accelerated recast.
Just my guess. It sure would be sweet though if they did recast them early.
SD Realtor
June 7, 2008 at 10:51 PM #219347ParticipantGuys we can only wish these pups would be recast earlier. Unfortunately the lenders have 0% vested interest in recasting these loans. Also consider the loans that have been sold and resold, it is pretty unlikely that the servicing organization even cares. Yet one never knows. I would assume that the first step any loan workout department would take for a distressed would be release the homeowner from this accelerated recast.
Just my guess. It sure would be sweet though if they did recast them early.
SD Realtor
June 7, 2008 at 10:51 PM #219319ParticipantGuys we can only wish these pups would be recast earlier. Unfortunately the lenders have 0% vested interest in recasting these loans. Also consider the loans that have been sold and resold, it is pretty unlikely that the servicing organization even cares. Yet one never knows. I would assume that the first step any loan workout department would take for a distressed would be release the homeowner from this accelerated recast.
Just my guess. It sure would be sweet though if they did recast them early.
SD Realtor
June 7, 2008 at 10:51 PM #219300ParticipantGuys we can only wish these pups would be recast earlier. Unfortunately the lenders have 0% vested interest in recasting these loans. Also consider the loans that have been sold and resold, it is pretty unlikely that the servicing organization even cares. Yet one never knows. I would assume that the first step any loan workout department would take for a distressed would be release the homeowner from this accelerated recast.
Just my guess. It sure would be sweet though if they did recast them early.
SD Realtor
June 7, 2008 at 10:51 PM #219207ParticipantGuys we can only wish these pups would be recast earlier. Unfortunately the lenders have 0% vested interest in recasting these loans. Also consider the loans that have been sold and resold, it is pretty unlikely that the servicing organization even cares. Yet one never knows. I would assume that the first step any loan workout department would take for a distressed would be release the homeowner from this accelerated recast.
Just my guess. It sure would be sweet though if they did recast them early.
SD Realtor
June 7, 2008 at 11:02 PM #219305ParticipantMy understanding is that the vast majority of NEG AM loans were not sliced and diced with the subprime ginsu knife.
Most are “portfolio” loans meaning that the lender kept them on their books along with the servicing rights.
In a 6% environment, some these loans were at 8%-9%+ representing a 35%-50% premium, AND the fact that there were accounting flaws which allowed them to “misplace” phantom income.
This may turn out to be the 500 year flood that people heard about, but didn’t think would occur in their lifetime.
I truly believe that we are witnessing history being made of a meltdown. It is going to affect the USA much worse than others.
Stocks trickle down slowly until they hit bottom. Houses will do the same.
June 7, 2008 at 11:02 PM #219324ParticipantMy understanding is that the vast majority of NEG AM loans were not sliced and diced with the subprime ginsu knife.
Most are “portfolio” loans meaning that the lender kept them on their books along with the servicing rights.
In a 6% environment, some these loans were at 8%-9%+ representing a 35%-50% premium, AND the fact that there were accounting flaws which allowed them to “misplace” phantom income.
This may turn out to be the 500 year flood that people heard about, but didn’t think would occur in their lifetime.
I truly believe that we are witnessing history being made of a meltdown. It is going to affect the USA much worse than others.
Stocks trickle down slowly until they hit bottom. Houses will do the same.
June 7, 2008 at 11:02 PM #219213ParticipantMy understanding is that the vast majority of NEG AM loans were not sliced and diced with the subprime ginsu knife.
Most are “portfolio” loans meaning that the lender kept them on their books along with the servicing rights.
In a 6% environment, some these loans were at 8%-9%+ representing a 35%-50% premium, AND the fact that there were accounting flaws which allowed them to “misplace” phantom income.
This may turn out to be the 500 year flood that people heard about, but didn’t think would occur in their lifetime.
I truly believe that we are witnessing history being made of a meltdown. It is going to affect the USA much worse than others.
Stocks trickle down slowly until they hit bottom. Houses will do the same.
June 7, 2008 at 11:02 PM #219352ParticipantMy understanding is that the vast majority of NEG AM loans were not sliced and diced with the subprime ginsu knife.
Most are “portfolio” loans meaning that the lender kept them on their books along with the servicing rights.
In a 6% environment, some these loans were at 8%-9%+ representing a 35%-50% premium, AND the fact that there were accounting flaws which allowed them to “misplace” phantom income.
This may turn out to be the 500 year flood that people heard about, but didn’t think would occur in their lifetime.
I truly believe that we are witnessing history being made of a meltdown. It is going to affect the USA much worse than others.
Stocks trickle down slowly until they hit bottom. Houses will do the same.
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