http://rightvoices.com/2008/01/13/nyts-there-has-been-plenty-of-talk-about-%e2%80%9cpredatory-lending%e2%80%9d-but-%e2%80%9cpredatory-borrowing%e2%80%9d-may-have-been-the-bigger-problem/ in all matter of opinion, our adversaries are insane. Sat, 07 Nov 2009 19:05:09 -0600 http://wordpress.org/?v=2.8.5 hourly 1 http://rightvoices.com/2008/01/13/nyts-there-has-been-plenty-of-talk-about-%e2%80%9cpredatory-lending%e2%80%9d-but-%e2%80%9cpredatory-borrowing%e2%80%9d-may-have-been-the-bigger-problem/comment-page-1/#comment-686705 FrmrArtyOffcr Mon, 14 Jan 2008 06:26:36 +0000 http://rightvoices.com/2008/01/13/nyts-there-has-been-plenty-of-talk-about-%e2%80%9cpredatory-lending%e2%80%9d-but-%e2%80%9cpredatory-borrowing%e2%80%9d-may-have-been-the-bigger-problem/#comment-686705 One other thing that has lead to a lot of these foreclosures have been VERY unscrupulous mortgage brokers. Mortgage originators get paid a percentage based on how much the lender is going to make over the life of the loan. As a result, they will increase interest rates and points to jack up their own commissions. The same mortgage broker that had me sign fraudulent documents also submitted them to a lender for a program that would've certainly cost me my house. It was an ARM that was over 8% and was adjusting to 13% after only 6 months. While the initial payment was less than I'm paying now, it would've gone up $400/month after 6 months. I've learned to read through good faith estimates carefully and once I saw that, I told the broker that if he couldn't do any better than that, forget it. He mumbled about how he didn't know why THAT lender was sending me a good faith estimate as he hadn't been planning on using them, but he wasn't able to come up with anything else either. I take that as an indication that he was lying and had been caught in it. One other thing that has lead to a lot of these foreclosures have been VERY unscrupulous mortgage brokers. Mortgage originators get paid a percentage based on how much the lender is going to make over the life of the loan. As a result, they will increase interest rates and points to jack up their own commissions. The same mortgage broker that had me sign fraudulent documents also submitted them to a lender for a program that would’ve certainly cost me my house. It was an ARM that was over 8% and was adjusting to 13% after only 6 months. While the initial payment was less than I’m paying now, it would’ve gone up $400/month after 6 months. I’ve learned to read through good faith estimates carefully and once I saw that, I told the broker that if he couldn’t do any better than that, forget it. He mumbled about how he didn’t know why THAT lender was sending me a good faith estimate as he hadn’t been planning on using them, but he wasn’t able to come up with anything else either. I take that as an indication that he was lying and had been caught in it.

]]> http://rightvoices.com/2008/01/13/nyts-there-has-been-plenty-of-talk-about-%e2%80%9cpredatory-lending%e2%80%9d-but-%e2%80%9cpredatory-borrowing%e2%80%9d-may-have-been-the-bigger-problem/comment-page-1/#comment-686696 FrmrArtyOffcr Mon, 14 Jan 2008 05:58:21 +0000 http://rightvoices.com/2008/01/13/nyts-there-has-been-plenty-of-talk-about-%e2%80%9cpredatory-lending%e2%80%9d-but-%e2%80%9cpredatory-borrowing%e2%80%9d-may-have-been-the-bigger-problem/#comment-686696 The mortgage brokers weren't looking the other way. They were actively encouraging/ advocating the misstatement of income in order to get their commission checks. I saw it happen when I went to refinance. I stated my income honestly to the mortgage broker only to have him send me forms to sign with it highly inflated. I didn't refi my mortgage when I saw that. I may do so again in a few months, but not through that broker. The mortgage brokers weren’t looking the other way. They were actively encouraging/ advocating the misstatement of income in order to get their commission checks. I saw it happen when I went to refinance. I stated my income honestly to the mortgage broker only to have him send me forms to sign with it highly inflated. I didn’t refi my mortgage when I saw that. I may do so again in a few months, but not through that broker.

]]> http://rightvoices.com/2008/01/13/nyts-there-has-been-plenty-of-talk-about-%e2%80%9cpredatory-lending%e2%80%9d-but-%e2%80%9cpredatory-borrowing%e2%80%9d-may-have-been-the-bigger-problem/comment-page-1/#comment-686668 Stock Market » NYT's: “There has been plenty of talk about “predatory lending,” but “predatory borrowing” may have been the bigger problem.” Mon, 14 Jan 2008 02:00:39 +0000 http://rightvoices.com/2008/01/13/nyts-there-has-been-plenty-of-talk-about-%e2%80%9cpredatory-lending%e2%80%9d-but-%e2%80%9cpredatory-borrowing%e2%80%9d-may-have-been-the-bigger-problem/#comment-686668 [...] Here’s another interesting post I read today by Right Voices [...] [...] Here’s another interesting post I read today by Right Voices [...]

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