Comments on: The proposed ARM rate freeze http://polizeros.com/2007/12/03/the-proposed-arm-rate-freeze/ Musings on politics: anti-war, global warming, peak oil and otherwise Wed, 07 Jan 2009 23:15:57 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Tony V http://polizeros.com/2007/12/03/the-proposed-arm-rate-freeze/comment-page-1/#comment-146235 Tony V Tue, 11 Dec 2007 02:58:06 +0000 http://polizeros.com/2007/12/03/the-proposed-arm-rate-freeze/#comment-146235 Unsecured Solutions has helped millions of people just like you. We have helped secure over five hundred million dollars for <a href="http://www.unsecuredsolutions.com" rel="nofollow">small business loans</a> alone in the past year for our clients. We have helped people fulfill their dreams of starting very profitable businesses, and even helped our clients acquire proven businesses with prosperous histories. Through our extensive and exclusive network of lenders, we are able to secure more capital at better rates than any other company in our industry. And because of our exclusive relationships with our lenders, you personally benefit from our experiences with each lender and unsurpassed knowledge of their lending products and which option is best for you! If there are only three things you remember after reading this, remember these 3 points: * Through our exclusive relationships with our lenders, we will get you more funds at better interest rates than any other company in our industry! * Our countless hours of research and years of experience guarantees you will have 100% satisfaction! WE HAVE NO UPFRONT FEES!! If for any reason you are not satisfied with our lending options we obtain for you, just decline your offers and OWE US NOTHING! * By choosing Unsecured Solutions for business and <a href="http://www.unsecuredsolutions.com" rel="nofollow">personal loans</a> and lines of credit, you are one step ahead of the rest. With 14 years experience and 2012 lenders nation wide, without a question we will be able to get you the most approvals at the best rates available today! Visit http://www.unsecuredsolutions.com today for more information. Unsecured Solutions has helped millions of people just like you. We have helped secure over five hundred million dollars for small business loans alone in the past year for our clients. We have helped people fulfill their dreams of starting very profitable businesses, and even helped our clients acquire proven businesses with prosperous histories. Through our extensive and exclusive network of lenders, we are able to secure more capital at better rates than any other company in our industry. And because of our exclusive relationships with our lenders, you personally benefit from our experiences with each lender and unsurpassed knowledge of their lending products and which option is best for you! If there are only three things you remember after reading this, remember these 3 points:

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]]> By: DJ http://polizeros.com/2007/12/03/the-proposed-arm-rate-freeze/comment-page-1/#comment-146052 DJ Tue, 04 Dec 2007 19:29:22 +0000 http://polizeros.com/2007/12/03/the-proposed-arm-rate-freeze/#comment-146052 Actually I think it's more like the teacher encouraging you to cheat-- and no one gets hurt until the proficiency test. Or like leaving your bicycle on the sidewalk without a lock, or leaving your car running outside the grocery store: it's an invitation to steal, and a person would be foolish to expect otherwise (except perhaps in a small, rural community). "This is what you have to say for me to give you a loan (wink, wink)." More people than not are going to say what the loan officer wants to hear. Is it right? No. But the no-doc loan is much like the verbal contract-- taking the borrower's word for it. Those who get burned can't say they didn't know. I say this as one who prefers doing business with verbal contracts-- and knows full well that much of the business world may take advantage. The appropriate response, in my view, would be to eliminate no-doc mortgages entirely. You can't even get a driver's license without verifying your identity and social security number-- why would anyone loan money to a borrower with limited history, without verifying that what they says is true? Especially when neither side of the transaction is a disinterested party: the loan officer gets paid (or at least rated) by how many loans are made, and doesn't personally take any risk for them. Actually I think it’s more like the teacher encouraging you to cheat– and no one gets hurt until the proficiency test. Or like leaving your bicycle on the sidewalk without a lock, or leaving your car running outside the grocery store: it’s an invitation to steal, and a person would be foolish to expect otherwise (except perhaps in a small, rural community). “This is what you have to say for me to give you a loan (wink, wink).” More people than not are going to say what the loan officer wants to hear.

Is it right? No. But the no-doc loan is much like the verbal contract– taking the borrower’s word for it. Those who get burned can’t say they didn’t know. I say this as one who prefers doing business with verbal contracts– and knows full well that much of the business world may take advantage.

The appropriate response, in my view, would be to eliminate no-doc mortgages entirely. You can’t even get a driver’s license without verifying your identity and social security number– why would anyone loan money to a borrower with limited history, without verifying that what they says is true? Especially when neither side of the transaction is a disinterested party: the loan officer gets paid (or at least rated) by how many loans are made, and doesn’t personally take any risk for them.

]]> By: Red Door Home Loans http://polizeros.com/2007/12/03/the-proposed-arm-rate-freeze/comment-page-1/#comment-146042 Red Door Home Loans Tue, 04 Dec 2007 15:48:39 +0000 http://polizeros.com/2007/12/03/the-proposed-arm-rate-freeze/#comment-146042 Yes, the system encourages people to lie. Unscrupulous mortgage brokers encourage their clients to lie every day. However, the borrower is still the one who tells the lies, the one who signs off on the legal documents. Our morals are really getting murky. If we shrug our shoulders to mortgage fraud, where is society heading? As long as telling falsehoods is "part of the system," we're off the hook? That's like telling your teacher that the reason you cheated on the test is because "everyone cheats." The teacher would still give the student a big, fat zero. We should expect adults to live up to the same moral standards that we expect from our children. If you tell a fib, take your lumps. I'm not up for bailing out liars just because "everyone else" was doing it. Yes, the system encourages people to lie. Unscrupulous mortgage brokers encourage their clients to lie every day. However, the borrower is still the one who tells the lies, the one who signs off on the legal documents. Our morals are really getting murky. If we shrug our shoulders to mortgage fraud, where is society heading? As long as telling falsehoods is “part of the system,” we’re off the hook? That’s like telling your teacher that the reason you cheated on the test is because “everyone cheats.” The teacher would still give the student a big, fat zero. We should expect adults to live up to the same moral standards that we expect from our children. If you tell a fib, take your lumps. I’m not up for bailing out liars just because “everyone else” was doing it.

]]> By: DJ http://polizeros.com/2007/12/03/the-proposed-arm-rate-freeze/comment-page-1/#comment-146040 DJ Tue, 04 Dec 2007 15:41:19 +0000 http://polizeros.com/2007/12/03/the-proposed-arm-rate-freeze/#comment-146040 The system encourages misrepresentation. I've seen many times that when someone applies for a no-doc mortgage, if their numbers aren't quite high enough, the loan officer will suggest that the prospective borrower "recalculate"-- i.e. fudge. To suggest that 70% of the millions of Americans facing default are criminals as a result of participating in a system that encourages you to lie in order to get a loan seems to me a bit absurd. Even if they were, where would we build all the prisons to hold them? BTW, I read in one article that 100% of those facing default failed to consult a loan counselor before obtaining their loan. I for one have never heard of a loan counselor before (and I'm a property owner and former realtor), so I'm not surprised. The mortgage industry certainly doesn't advertise their existence. The system encourages misrepresentation. I’ve seen many times that when someone applies for a no-doc mortgage, if their numbers aren’t quite high enough, the loan officer will suggest that the prospective borrower “recalculate”– i.e. fudge.

To suggest that 70% of the millions of Americans facing default are criminals as a result of participating in a system that encourages you to lie in order to get a loan seems to me a bit absurd. Even if they were, where would we build all the prisons to hold them?

BTW, I read in one article that 100% of those facing default failed to consult a loan counselor before obtaining their loan. I for one have never heard of a loan counselor before (and I’m a property owner and former realtor), so I’m not surprised. The mortgage industry certainly doesn’t advertise their existence.

]]> By: Red Door Home Loans http://polizeros.com/2007/12/03/the-proposed-arm-rate-freeze/comment-page-1/#comment-146038 Red Door Home Loans Tue, 04 Dec 2007 15:21:47 +0000 http://polizeros.com/2007/12/03/the-proposed-arm-rate-freeze/#comment-146038 It will be a bailout for sure; the banks aren't going to lose money. The FBI has come out and said that up to 70 percent of early payment defaults may be linked to borrower misrepresentations on mortgage loan applications, according to the FBI’s Mortgage Fraud Report. We are going to bailout folks who used "borrower misrepresentations" to get mortgages that later defaulted. Most of these people are not innocent family people. They were complicit in defrauding the lender to get a loan they couldn't afford -- and now we are going to bail them out. How long can we make such crazy decisions before the numbers don't add up and our system goes kaput? It will be a bailout for sure; the banks aren’t going to lose money. The FBI has come out and said that up to 70 percent of early payment defaults may be linked to borrower misrepresentations on mortgage loan applications, according to the FBI’s Mortgage Fraud Report. We are going to bailout folks who used “borrower misrepresentations” to get mortgages that later defaulted. Most of these people are not innocent family people. They were complicit in defrauding the lender to get a loan they couldn’t afford — and now we are going to bail them out. How long can we make such crazy decisions before the numbers don’t add up and our system goes kaput?

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