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16 years ago

I just listened to the
I just listened to the podcast.

I am amazed to learn from a caller that they give rebates to the buyer in order to qualify the buyer for a lower rate. I am not sure if the lender knows about this. If this is not disclosed, it could be counted as a mortgage fraud.

From the buyer perspective, he not only get a house but also a large cash windfall. It does not take rocket scientist to guess that for a person who has not saved much in the past, what he would do with the cash.

In the meantime, every honest people are paying the price because the price is inflated by the illegal rebates.

The government should spend more time and energy on these mortgage frauds than use taxpayer money to bailout them.

16 years ago
Reply to  KingKong

This is absolutely
This is absolutely happnening. I know two people who have sold houses recently, and both had cash back (only 1 was above the 3% or so the lender is willing to live with).

I also think this is happening much more know than during the bubble (contrary to what the caller said). It’s also likely to accelerate with a tighter lending environment where people struggle to qualify. This would mean the actual price decline is even greater than what Case Shiller would imply.


16 years ago

Great interview, Rich. Most
Great interview, Rich. Most of the key points indicating further price declines were touched. All of the listener questions where relevant and your explanations understandable. I look forward to seeing you get more media exposure as the downturn further unfolds. I only wish interviews like this got more press 4-5 years ago so that maybe my wife and I could be comfortable home owners now instead of having to keep waiting.