If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(CNN)   Aw geez, not this shiat again   (money.cnn.com) divider line 86
    More: Stupid, adjustable-rate mortgages, Federal Housing Administration, mortgages, credit reports, subprime mortgage crisis  
•       •       •

6142 clicks; posted to Business » on 21 Mar 2014 at 5:06 PM (18 weeks ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



86 Comments   (+0 »)
   
View Voting Results: Smartest and Funniest

First | « | 1 | 2 | » | Last | Show all
 
2014-03-21 02:40:40 PM
What could possibly go wrong?
 
2014-03-21 02:42:49 PM
We just don't farking learn, do we?
 
2014-03-21 02:49:49 PM
Huh!

I guess we should have re instituted some of those regulations that were removed that caused this whole thing. Yes, you can blame Clinton AND Bush.
 
vpb [TotalFark]
2014-03-21 03:07:04 PM
I think it wasn't so much the sub-prime mortgages themselves, it was the whole fraudulently selling them as prime mortgage financial instruments thingy.
 
2014-03-21 03:31:26 PM

Nadie_AZ: Huh!

I guess we should have re instituted some of those regulations that were removed that caused this whole thing. Yes, you can blame Clinton AND Bush.


And Obama, don't forget him.  He's been in charge long enough to enact some changes.
 
2014-03-21 03:32:06 PM
Please no more bailouts.
 
2014-03-21 03:43:20 PM
HAHAHAHAHAHAHAHAHAHAHA!
 
2014-03-21 04:02:11 PM
Sweet, I can finally start flipping homes again!
 
2014-03-21 04:20:30 PM
Hey, I just had a brilliant idea.  Why don't all those subprime loans get bundled into a package then reshuffle the packages again and again and sold off and traded in portions as some sort of, I don't know, credit default swap, and then finally traded to like a big investment bank or maybe an insurer.  Wow, this could begin the boom of the 21st century!
 
2014-03-21 04:20:43 PM

Sin_City_Superhero: We just don't farking learn, do we?


We did learn.  When the banks took a gamble on these and went tits up, they got bailed out.

Lesson learned: if you take a huge risk and it pans out, you make piles of dough.  If you take a big risk and lose your shorts, our government will bail you out.  So huge risk with lots of upside and no downside risk?  You'd be stupid not to do it.
 
2014-03-21 04:35:50 PM

SlothB77: Lesson learned: if you take a huge risk and it pans out, you make piles of dough. If you take a big risk and lose your shorts, our government will bail you out. So huge risk with lots of upside and no downside risk? You'd be stupid not to do it.


Exactly. Hey! we're "too big to fail!"
 
2014-03-21 04:43:08 PM
And there goes any remaining hopes that Millennials and older Gen Y folks ever had of selling their starter homes to get a tad more space.
 
2014-03-21 05:08:24 PM

jwa007: Nadie_AZ: Huh!

I guess we should have re instituted some of those regulations that were removed that caused this whole thing. Yes, you can blame Clinton AND Bush.

And Obama, don't forget him.  He's been in charge long enough to enact some changes.


hahahah, nice!

As if anything Obama would try to do would make it past the House.
 
2014-03-21 05:09:43 PM

Prey4reign: Hey, I just had a brilliant idea.  Why don't all those subprime loans get bundled into a package then reshuffle the packages again and again and sold off and traded in portions as some sort of, I don't know, credit default swap, and then finally traded to like a big investment bank or maybe an insurer.  Wow, this could begin the boom of the 21st century!


Well, I don't think anyone's thought of that yet. Let's give it a go. What's the worst that could happen?
 
2014-03-21 05:11:32 PM

vpb: I think it wasn't so much the sub-prime mortgages themselves, it was the whole fraudulently selling them as prime mortgage financial instruments thingy.


Well yeah, but I want to hate poor people.
 
2014-03-21 05:14:52 PM
lenders are charging interest rates of as high as 8% to 10% and requiring borrowers to make down payments of as much as 25%-35%..

In other words, banks are actually going to have to really fark this up in order to not make a profit. Even if there was a downturn, it's hard to lose when you already have 20% of the house value.
 
2014-03-21 05:17:19 PM
And I'm about to change jobs.  Looks like a new house in my future!
 
2014-03-21 05:19:42 PM
with high interest rates and 25-35% down.  that's how credit lending works.  higher risk, higher premium/down payments.

/ also, it wasn't subprime lending that brought it all down.  it was a combination of improperly described mortgage backed securities sold on the market, mortgage servicer fraud/malfeasance, and a vacuum of accountability where lenders engaged in predatory lending, mortgage fraud and a complete indifference to risk because the the secondary market would buy any mortgage because the improperly defined mortgage-backed security pools were being sold as gold when in fact they were shiat.
 
2014-03-21 05:19:47 PM
Student loans......
 
2014-03-21 05:24:27 PM
on another note, i think subprime only means that you have a low credit score.  credit scores are not the most important factor to accurate risk assessment.

these matter more: debt to income, stability of income, value of collateral, value of other collateral/assets, and amount of down payment.
 
2014-03-21 05:38:37 PM
The last 2 years, I've been saving for a 20% down payment on a house. As soon as I got my credit score to a good level, I stated getting hit HARD with people trying to get me to agree to all sorts of loans with hidden fees and ridiculous rates.

Reading all the stories I've read about the last collapse put the fear in me big time, making me proactive about researching all about mortgages. They are very good at trying to make it sound like the greatest idea ever though. They really latched on when I mentioned how much I hated renting and was wanting to close.
 
2014-03-21 05:44:44 PM

timujin: As if anything Obama would try to do would make it past the House.


For his first two years his party had both houses of Congress.  In that time he spent most of it trying to reach across the aisle rather than channeling LBJ and getting shiat done.  I have no respect for his actions during or since that time.
 
2014-03-21 05:49:38 PM
To be fair, subprime mortgages decimated the economy by being forced on people who shouldn't have had it. If done properly subprime mortgages could help out those who need a bit of room.
 
2014-03-21 05:51:49 PM

jwa007: timujin: As if anything Obama would try to do would make it past the House.

For his first two years his party had both houses of Congress.  In that time he spent most of it trying to reach across the aisle rather than channeling LBJ and getting shiat done.  I have no respect for his actions during or since that time.


Good he stopped trying. That's the way to get things done, right?
 
2014-03-21 05:55:16 PM
One of the more curious aspects of this is that Texas (yes, wild and wooly Texas) instituted state regulations on mortgages after the S&L mess.  So Texas didn't have as many sub-primes due to regulation.  The irony is fungible.
 
2014-03-21 06:11:18 PM

cretinbob: Student loans......


Still a huge problem...for students and recent grads.

As for the topic, this is the way sub-prime loans should be handled: the higher the risk, the higher interest rate and down payment to offset that risk. Hopefully, the due diligence will also be stricter, too, so only people who are really serious about buying a home, and are able to pay back the higher costs of obtaining the necessary sub-prime loans, will qualify.
 
2014-03-21 06:11:39 PM

Sin_City_Superhero: We just don't farking learn, do we?


That's why I advocate hanging people for fraud.  It would put an end to this shiat in a hurry
 
2014-03-21 06:21:38 PM

Grand_Moff_Joseph: And there goes any remaining hopes that Millennials and older Gen Y folks ever had of selling their starter homes to get a tad more space.


Starter home? nubian please. We are still living with our Boomer parents.
 
2014-03-21 06:30:22 PM

Smeggy Smurf: Sin_City_Superhero: We just don't farking learn, do we?

That's why I advocate hanging people for fraud.  It would put an end to this shiat in a hurry


But I'm already well-hung.
 
2014-03-21 06:32:04 PM
But this time around, the loans are much more costly. During the housing bubble, lenders were handing out subprime loans with cheap teaser rates and little or no down payments. Now, lenders are charging interest rates of as high as 8% to 10% and requiring borrowers to make down payments of as much as 25%-35%.


This time, when we lend money to people who can't make their mortgage payments let's make it cost them more and get a bunch of cash up front so when they walk away they are REALLY farked!
 
2014-03-21 06:33:52 PM
"They're just Americans who want to buy homes but can't," said Dallas, who used to run First Franklin, a subprime lender that went bust in the mortgage meltdown.

A real humanitarian, this guy.

*waves 'murkan flag furiously*
 
2014-03-21 06:35:08 PM
God dammit. What the fark, mortgage industry?

When something doesn't work and almost destroys the entire economy of the country, you bury it deep, be glad for your bailout, and never speak of or entertain the thought of it again, ever.

Seriously, never again. No comebacks, no subprime mortgage retro days, nothing.
 
2014-03-21 06:42:09 PM
Well sure. Why not? It's not like the banksters responsible for the last implosion ever had to bear any responsibility, or ever will.
 
2014-03-21 06:42:27 PM
"New Leaf lending division"? Must be named after the only thing that will be left to cover the bank's balls after they go bankrupt
 
2014-03-21 06:49:34 PM

HighlanderRPI: "New Leaf lending division"? Must be named after the only thing that will be left to cover the bank's balls after they go bankrupt


Who needs leaves?  They're just gonna get bailed out while teabagging the taxpayers again.
 
2014-03-21 06:53:21 PM

edgesrealm: God dammit. What the fark, mortgage industry?

When something doesn't work and almost destroys the entire economy of the country, you bury it deep, be glad for your bailout, and never speak of or entertain the thought of it again, ever.

Seriously, never again. No comebacks, no subprime mortgage retro days, nothing.


Do you honestly think even 10% of the people who got sub-prime loans from 1995-2008 could've put 25% down? I think that in order to put that much money down on a house, you have to be pretty financially responsible or have a rich relative. That's the difference between then and now.
 
2014-03-21 06:58:02 PM

Grand_Moff_Joseph: And there goes any remaining hopes that Millennials and older Gen Y folks ever had of selling their starter homes to get a tad more space.


I find the idea of buying a starter home then selling it and moving repugnant.  Maybe America's work force is too willing to uproot and move at the drop of a hat, and it is killing communities.

Half the damn problem is not seeing a home as a place to live but as somewhere to sit on your ass while it's value appreciates so you can sell it in a few years to some other sucker.
 
2014-03-21 07:07:48 PM
Don't worry.  This time it will be different.
 
2014-03-21 07:15:07 PM

meat0918: I find the idea of buying a starter home then selling it and moving repugnant


Yeah. There's no reason a 25 year old with no family and a 35 year old with 2 kids would have different needs in a home. You should buy a house in your 20s and live in it until you die. To do otherwise is just despicable!
 
2014-03-21 07:15:30 PM
Not just mortgages and student loans, car loan financiers have been dabbling in subprime loans for awhile now. History doesn't always repeat but sometimes it rhymes.
 
2014-03-21 07:18:24 PM
Wall Street owns a whole lot of inventory.  They have to cash out somehow.
 
2014-03-21 07:19:57 PM

timujin: jwa007: Nadie_AZ: Huh!

I guess we should have re instituted some of those regulations that were removed that caused this whole thing. Yes, you can blame Clinton AND Bush.

And Obama, don't forget him.  He's been in charge long enough to enact some changes.

hahahah, nice!

As if anything Obama would try to do would make it past the House.


Thought he had a pen and a phone.
 
2014-03-21 07:21:13 PM

thurstonxhowell: meat0918: I find the idea of buying a starter home then selling it and moving repugnant

Yeah. There's no reason a 25 year old with no family and a 35 year old with 2 kids would have different needs in a home. You should buy a house in your 20s and live in it until you die. To do otherwise is just despicable!


Let me addendum it since it's the end of the day and I (again) got things mixed up.

I find the idea of flipping homes, to which the starter home has been warped from it's original idea and worked into the start for flipping, repugnant.

Buy this "starter" (your first quickly resellable) home, and flip it for quick cash.
 
2014-03-21 07:27:25 PM

runwiz: Don't worry.  This time it will be different.


It will. At that money down and interest rate, the loans are good.

People will have to default within a couple years AND see a major real estate crash before a bank loses money on a loan like this.
 
2014-03-21 07:30:50 PM

meat0918: Grand_Moff_Joseph: And there goes any remaining hopes that Millennials and older Gen Y folks ever had of selling their starter homes to get a tad more space.

I find the idea of buying a starter home then selling it and moving repugnant.  Maybe America's work force is too willing to uproot and move at the drop of a hat, and it is killing communities.

Half the damn problem is not seeing a home as a place to live but as somewhere to sit on your ass while it's value appreciates so you can sell it in a few years to some other sucker.


I bought at twenty. I have had other pay my mortgage for 95% of my ownership of that property. I rented out rooms when I lived there and continued after moving elsewhere.

I would have been an idiot to have bought it primarily with personal housing in mind.
 
2014-03-21 07:34:10 PM

gizmanjr: timujin: jwa007: Nadie_AZ: Huh!

I guess we should have re instituted some of those regulations that were removed that caused this whole thing. Yes, you can blame Clinton AND Bush.

And Obama, don't forget him.  He's been in charge long enough to enact some changes.

hahahah, nice!

As if anything Obama would try to do would make it past the House.

Thought he had a pen and a phone.


He also has control of the Department of Justice and could have prosecuted some high ranking fraudulent asshole bankers. That tends to convince the rest of them not to commit rampant fraud.

Hell, Bush Senior put over a thousand fraudulent bankers into prison after the Savings and Loan debacle in the late 80's early 90's ant that was crisis was barely a drop in the proverbial bucket compared to the rampant fraud behind the recent collapse.

Instead, Obama named a millionaire Wall Street defense lawyer as head of the Justice Department and refused to criminally prosecute his wealthy donor friends.
 
2014-03-21 07:34:13 PM

Smackledorfer: meat0918: Grand_Moff_Joseph: And there goes any remaining hopes that Millennials and older Gen Y folks ever had of selling their starter homes to get a tad more space.

I find the idea of buying a starter home then selling it and moving repugnant.  Maybe America's work force is too willing to uproot and move at the drop of a hat, and it is killing communities.

Half the damn problem is not seeing a home as a place to live but as somewhere to sit on your ass while it's value appreciates so you can sell it in a few years to some other sucker.

I bought at twenty. I have had other pay my mortgage for 95% of my ownership of that property. I rented out rooms when I lived there and continued after moving elsewhere.

I would have been an idiot to have bought it primarily with personal housing in mind.


I'm just another internet asshole that got his terms mixed up.  See above for my clarification, but I had heard "starter" home recently used as a pitch to get into flipping.  They're on the radio more and more trying to get people to attend their "free" seminars.
 
2014-03-21 07:35:30 PM
They never went away. The FHA has been churning out sketchy mortgages like mad since 2008.
 
2014-03-21 07:46:19 PM

meat0918: Smackledorfer: meat0918: Grand_Moff_Joseph: And there goes any remaining hopes that Millennials and older Gen Y folks ever had of selling their starter homes to get a tad more space.

I find the idea of buying a starter home then selling it and moving repugnant.  Maybe America's work force is too willing to uproot and move at the drop of a hat, and it is killing communities.

Half the damn problem is not seeing a home as a place to live but as somewhere to sit on your ass while it's value appreciates so you can sell it in a few years to some other sucker.

I bought at twenty. I have had other pay my mortgage for 95% of my ownership of that property. I rented out rooms when I lived there and continued after moving elsewhere.

I would have been an idiot to have bought it primarily with personal housing in mind.

I'm just another internet asshole that got his terms mixed up.  See above for my clarification, but I had heard "starter" home recently used as a pitch to get into flipping.  They're on the radio more and more trying to get people to attend their "free" seminars.


I heard one of those ads the other day. I lol every time.

The premier house flippers in the country want to let me get in on their racket? Where do I sign?
 
2014-03-21 07:48:55 PM

jwa007: timujin: As if anything Obama would try to do would make it past the House.

For his first two years his party had both houses of Congress.  In that time he spent most of it trying to reach across the aisle rather than channeling LBJ and getting shiat done.  I have no respect for his actions during or since that time.


Yawn.

Too much foxnews rots your brain.
 
Displayed 50 of 86 comments

First | « | 1 | 2 | » | Last | Show all

View Voting Results: Smartest and Funniest


This thread is closed to new comments.

Continue Farking
Submit a Link »






Report