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The entire planet's mortgage crisis could have been so easily averted.
If only all of us were Amish.
While I dream of a world filled with people who honor the land and decry technology that is unnecessary (did you know? The Amish do use technology, but only if it's necessary -- milking machines, yes; Hummers, no), I understand that you can't unring our media- and technology-addicted culture's bell. On the other hand, it's great to be the mortgage banker to the Amish. Bill O'Brien, mortgage banker at the Hometowne Heritage Bank, has had one late payment this year in his $100 million portfolio. A few days late. And he's never had a loss on an Amish loan.
The risk profile is great, sure, but the work is hard, he says; he puts 1,000 miles each week on his car servicing his clients. (Sort of ironic, I think, given the Amish don't drive.) Interestingly, the Amish mortgages can't be jammed into CDOs or other securitized packages; due to an obscure legal rule, mortgages for homes without electricity, or homes that aren't insured, can't be securitized.
What can other mortgage bankers learn from O'Brien? Instead of relying on credit histories and scores or proof of financial stability, he talks to the borrower's father, and usually his father-in-law, too. "It takes a team to make a farm go," he tells NPR. If only if all of our families could operate in that manner.
Want a safe bet in the mortgage world? Try the Amish
Posted Dec 12th 2008 5:42PM by Sarah Gilbert
Filed under: Agriculture
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Reader Comments (Page 1 of 1)
12-13-2008 @ 8:13AM
chip a wa said...
Want Security? go to www.whosyourdaddy.com
12-13-2008 @ 11:27AM
william lindblad said...
The Amish drive - they use real horsepower.
12-13-2008 @ 11:57AM
S,BURGESS said...
A pox on the Amish; they contribute nothing to the Am economy; They grab all available farm land for themselves.
12-16-2008 @ 4:15PM
Mortgage said...
Thanks for this point of view. It's interesting to see how other cultures/religions handle things like a mortgage , driving, working, etc.
12-17-2008 @ 10:39AM
easyEZ said...
The original article romanticized the Amish. This one does it even more brazenly. How about mentioning what else we would be missing out on if we would all be Amish? Like Polio vaccine, or how about something really simple that even the Amish use, but wouldn't exist if we depended on them for it, children's Tylenol.
12-18-2008 @ 12:51AM
easyEZ said...
The problem here is that the Amish are being related to as if they weren't really a coherent viable entity. Like, say for example, someone who isn't very health conscious might relate to one of those milkshake drinks that are supposed to be good for you. The thing is probably going to get pitched after a couple of sips or just flat out forgotten.
That's in direct opposition to what the article conveys at face value, which is the idea that our lives would all somehow, magically be better, if only we were more like the Amish.
The author never bothers to understand the Amish and our relationship with them and vice versa enough to know whether the references used have any validity or make sense.
What contempt she must have for the Amish?