Mortgage Bankers Association struggles to pay its mortgage

I'm certainly feeling the effects of sub-prime, the war, the ponzi schemes of wall street, oil industry, "trade" with China, and on and on.

Still, I dance!

Congress caused the bank failures in the late 80's with their July change to the tax code regarding losses allowed for deductions on income tax returns with NO grandfather clause. So, investors who had already lost tons from January to June had no way to avoid paying heavy taxes when the thought they would have deductions. Caused unbelieveable foreclosures, devaluation in the appraised value therefore many banks were deemed insolvent and the properties were sold to more investors for about 10 to 50 cents on the dollar and the tax payer paid the rest. Another time when good times reigned in a ton of loans and then bad times hit and some people called foul. Congress does not admit it when the make these errors, it is easier to go get a few CEOs, throw them in jail for fraud and tell the taxpayer it wont happen again, they got the bad guys.

I have read a lot of comments about people getting a house they cant afford well...our mortgage payment is LESS than most rent...we lost our house in a fire in 1999 and did not have time to wait for rebuilding,ect so we bought a top of the line doublewide mobile home(yeh make your trailer park jokes but we own our land) and we kept gettting refi offers to make it real estate loan instead of commercial loan so we foolishly did now for the past 2 years the same lenders won't touch doublwide loans! since we now are older and have fixed incomes we are in a real jam...these people ought to have to give us the lower interest rate too but it is SORRY CHARLIE.most people think $580 is nothing but with no way to make extra income and all the rising prices, 2 % rate reduction would help us alot but boo hoo for the banks that used people like us for years...greedy bankers are suffering with their million dollar salaries...while I could LIVE on the interest from their incomes

VRCarrington most of these loans by passed PMI. For example, they could do an 80/20, two liens for the borrowers to pay, no PMI.

Kathy, you did a good deal for yourself when you did it. The problem is, the state changed the laws, in Texas, what happened is, the law was changed to make the mobile home become tied to the property as real estate instead of chattel. This made it so that the mortgage lenders had to accept manufactured housing. The mortgage lenders not being familiar with this product did not realize the default rate runs normally about 50%, once they received those mortgages, they began changing the guidelines to make it a lower risk product for them.

In the meantime, the mobile home lenders were having a fit because that was their business. So the state of Texas and probably others too changed the law back so that chattel is okay. All was supposed to be a tax income benefit for the states. You got caught in the changing times. Now you have a mortgage loan and there is not a mortgage loan product for you to obtain.

What you can do, is trade in your current home for a new home loan and you should be able to qualify under the current lending criteria.

Best wishes to you.

Kay knows what she is talkling about, wish the rest of you did as well. Mortgage rates are set on "WallStreet", not your street or the street that the Bank is on......WallStreet, for those of you who have never heard of it, it is not around here. It is in a place far, far away. And the Feds as well as their actions do not DIRECTLY effect the mortgage rates to begin with. Let's go back to elementary economics and travel down memory lane.

I sympathize with those "hardworking" people who have suffered or will suffer. BUT I DO NOT even care about those who bought million dollar homes with interest only loans at 1.5% so they could "get them a big CRIB" and chose to make the Benz payments over the Crib payments. And that is the largest segment of the foreclosure market. And ALSO for those Mortgage Broker and Lender HATERS out there, do a little research to see how fraud (Mortgage Fraud) plays into the equation. In Georgia, which is almost if not the worst state for foreclosures, the no 1 reason for foreclosures here is due to Mortgage Fraud, and for those of you sympathetic Lender haters, the lender did not lie about the income, THE BORROWER DID!!!!!!!!!!!!

So, the borrower wanted a huge house and they qualified for a normal sized or average house in reality, BUT in order to impress their peers they decided to buy a BIG house, SO they give themselves a raise (FRAUD) on their w-2 and paystub. On the application, they lied bout their income, they falsified documents to provide the Lender or Broker or Bank, then they sign their name on the dotted line, the whole process is tainted from the "get go", they close, live in the home for a few months, the rates go up (the loan is tied to LIBOR or some other cost of funds index) and when the economy changes so do the indexes which cause the rates to go up...OOOOPS! Shit, we didn't know the rate could go up! Shit! We can't afford this house. Let's walk away and "give it back" that damn Broker done ripped us off. He didn't tell us the rate could go up did he Honey? Well they did tell us that BUT let's keep that little tidbit to ourselves and let's call that attorney I saw on TV who is now chasing after Lenders cause he caught all the ambulances he could catch and besides, here is a new market for us to target. Now, the Lender gets maybe 60-70 cents on the dollar BEFORE paying a Realtor's commission and before paying 10-30,000 dollars in legal fees when foreclosure takes place. Do any of you care that the borrower committed fraud and the Lender lost his ass in this debocle??? Probably not because all those Lenders are just scum to begin with right??
I say prosecute the fraud perpetrators and make them poay the Lender back all their money. You say, "poor, poor, pitiful people". That Lender took advantage of those nice folks and took their home and their dreams away from them.

BULL SHI* !!!! People, wake up!!

I know not everone is guilty of this BUT many of them were either guilty of fraud or they were guilty of greed, the rest were stupid except for the few uneducated people who really are victims. Those few victims are worthy of you concerns and sympathy, the rest are on their own as far as I am concerned. Enjoy that tent!

Oh yea Congress, stay the hell out of the business of the lenders, if they do go broke it isn't the taxpayers place to "bale them out"

A former Mortgage Banker/Lender/Broker and all around piece of shi* to you guys.

CRA had nothing to do with protecting your checking account there Margo and just FYI, the S&L Crisis was at it's peak in the late 80's not 70's. I think time is slip slidin' away from you, "girlfriend".

But I still like you anyway.

Shmucck, why in the world woulld you let your Realtor's "friend or relative" originate your mortgage loan to begin with???Ever hear of the term "conflict-of-interest".????

ROFLMAO Ron..............well said, I am dying here, can hardly see to type this reply. I want to add that #1. The mortgage lenders cannot discriminate against borrowers and decline a loan that has passed all the guidelines, the lender is required to submit the loan and maybe the fraud might be detected in the process and maybe it wont. The loan officer cannot accuse a borrower of fraud without knowledge and proof. #2 It is true that the borrowers get smarter with each mortgage loan the apply for. When they are declined, they are entitled to know the reasons and somehow their borrowing scenario gets better with the next mortgage lender, some of the time.

LOL Ron, you should be a millionaire and if you are not, write a book, you are a kick.

Okay, I need to be clear. If it were not for the CRA, the BANK would not WANT the business from John Q Public. The BANKER is interested in clients such as say, large corporations with tons of money.

The S&Ls all went broke in the late 70's. The banks went broke in the late 80's. The Savings and Loans did not come back. The banks did.

Time just whizzed by, I wear the T Shirt every day. Thanks.

I say if Lilly feels so bad for all of those crooks then I believe Lilly should be the one to bail their worthless you know what's out. How many people have they destroyed and not one of them felt bad. I don't think what they are going thru is enough actually!
PS When Lilly is sitting on the unemployment line Lilly needs to remember this

Margo, you sound like an "ole Timer" like me, of course I am not attacking your age or anything BUT there are many problems within the Mortgage arena and mostly due to idiots looking for a quick buck and ruthless in their efforts to get them.

Most people do not have a clue as to the complexities of a business such as the mortgage business or banking at all for that matter, yet they want to Blame the sins of the world on The Mortgage people.........ewwwwww, stay away,they will still your babies and take your homes. They are the "bad" people!!!! yuk

I see your point about CRA and I concede...I am happy to make you smile at the end of this long day if that be the case......And dont forget, WATCH OUT FOR THE MORTGAGE PEOPLE!!

I have an idea, send all the people assiciated with Mortgagte Bankers, Brokers and Lenders off to fight in IRAQ and send the others home. Would that make the NICE people happy, you think?????

Sign me up, if I can take the place of my young son, I will gladly go.

I meant "Steel" your babies. See, not only are we crooks, we can't spell worth a damn either. WE ARE SCUM!!!!!

While I am on my soapbox, is there anything, ANY THING AT ALL, that you folks would like to blame on the Mortgage Lenders while you are at it???

The war, gas prices, unemployment, the economy, inflation, trade deficits, NAFTA, The Stock Market, Castro's health, taxes???? Anything? Go ahead, we're fair game. I wonder what line of work you guys are in. Any takers????????!!

Ron, you are cracking me up. That's why I'm a stay at home Mom now. I stole those 2 babies from one of my clients in exchange for loan approval. Call me Rumplestilskin.

This is classic poetic justice! Still there's a whole lot of blame to go around. At the rate that the economy is declining and business are failing, anyone could lose their home. It just takes the loss of one job in a two income family, a serious
illness or bad luck. The sadder truth is that most people living the middle-class lifestyle on the surface are only a couple of paychecks away from being in the streets. That's nothing new. If you were in the military reserve and were recalled to active duty from a great paying job you could end up screwed-especially if the military pay doesn't cover the pay you were receiving. The creative financing fallout has a lot to do with speculation on the part of individuals who thought they'd get rich
quickly by flipping houses and driving real estate prices up. When they couldn't flip the houses they defaulted on loans they shouldn't have qualified for in fhte first place. And then there's the greedy developers building overpriced cookie-cutter houses that aren't selling and who owe the banks big money. So, it's not just individuals who underestimated the true costs of home ownership.