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(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  
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6142 clicks; posted to Business » on 21 Mar 2014 at 5:06 PM (40 weeks ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2014-03-21 07:54:55 PM  
Once again, the government is forcing honest, hard-working lenders to give money to inner-city people.  Thanks, Obama.
 
2014-03-21 08:30:29 PM  

Sin_City_Superhero: 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.


www.dvdtalk.com
 
2014-03-21 09:23:27 PM  

Smeggy Smurf: Sin_City_Superhero: 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.


It's twoo! It's twoo!
 
2014-03-21 10:05:23 PM  
Subprime was not the cause; it was the symptom.
 
2014-03-21 10:13:47 PM  

SlothB77: 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.


At least in the UK when the government bailed out some banks it took ownership, or a very significant shareholding, in return. Which it's now preparing to sell to get their money back. The bankers didn't just get bailed out for free.
 
2014-03-21 10:35:40 PM  
BWA-HAHAHAHAHAHAHAHAHAHHAHAHAHAHAHAHAHAHAHAHAHAHAH A!!!

*takes breath*

They made a killing last time!

BWA-HAHAHAHAHAHAHAHAHAHHAHAHAHAHAHAHAHAHAHAHAHAHAH A!!!

*takes breath*

Nothing! Absolutely NOTHING stopping them from doing us again!

BWA-HAHAHAHAHAHAHAHAHAHHAHAHAHAHAHAHAHAHAHAHAHAHAH A!!!

*takes breath*

HAHAHAHAHAHAHAHAHAHHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAH A!!!
 
2014-03-21 10:48:14 PM  
Why is owning a house part of the "American Dream"? I own a house, and I'm ready to sell it. Too much maintenance, upkeep, cleaning, yard work, expense, etc. I miss living in an apartment.
 
2014-03-21 11:16:44 PM  

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


Banks learned they can get away with it.

What more do they need to do?
 
2014-03-21 11:20:39 PM  

DubyaHater: Why is owning a house part of the "American Dream"? I own a house, and I'm ready to sell it. Too much maintenance, upkeep, cleaning, yard work, expense, etc. I miss living in an apartment.


I like business trips when I live out of a suitcase and hotel room.  I still have 90% of what I want on a daily basis, clean sheets/towels daily, and an awesome shower.  Then I come home and wonder why I need all the rest of the crap I have.
 
2014-03-21 11:27:35 PM  

fluffy2097: Banks learned they can get away with it.

What more do they need to do?


Tell that to Washington Mutual and Lehman Brothers.

Banks learned that MOST of them will get away with it if they ALL fail at the same time.
 
2014-03-21 11:30:25 PM  

syrynxx: DubyaHater: Why is owning a house part of the "American Dream"? I own a house, and I'm ready to sell it. Too much maintenance, upkeep, cleaning, yard work, expense, etc. I miss living in an apartment.

I like business trips when I live out of a suitcase and hotel room.  I still have 90% of what I want on a daily basis, clean sheets/towels daily, and an awesome shower.  Then I come home and wonder why I need all the rest of the crap I have.


You don't need it.

But living in a shoebox apartment? I want a house, a million acres of land, and a sniper to put a slug through every subwoofer on the planet.
 
2014-03-22 01:39:58 AM  

DubyaHater: Why is owning a house part of the "American Dream"? I own a house, and I'm ready to sell it. Too much maintenance, upkeep, cleaning, yard work, expense, etc. I miss living in an apartment.


This. I rent a perfectly nice 3 Br house that was built in 2006 for a reasonable price every month. Sure, I don't own the place and when my lease expires I guess the person that owns it could decide the want it back, but that is pretty unlikely. In the meantime, I have a nice house, and if the furnace or any other appliance decides to take a shiat, guess what? I call the property manager, and somebody fixes or replaces it, and my savings account stays intact. I have the additional luxury under my lease to fix minor problems (leaky faucet, etc) myself and deduct the cost from my rent if I so desire. Can you deduct the cost of a new kitchen faucet from your mortgage payment?

Brief version: Renting isn't all that bad if you have a decent landlord. It keeps your out of pocket costs consistent at the very least.
 
2014-03-22 01:43:34 AM  
It's cute that anybody thought that the banks had learned anything from the last financial meltdown.  Oh wait, they did learn one thing, that the taxpayers will bail them out.
 
2014-03-22 01:45:35 AM  

vernonFL: Please no more bailouts.


... for ANYBODY.
 
2014-03-22 01:58:28 AM  

buzzcut73: DubyaHater: Why is owning a house part of the "American Dream"? I own a house, and I'm ready to sell it. Too much maintenance, upkeep, cleaning, yard work, expense, etc. I miss living in an apartment.

This. I rent a perfectly nice 3 Br house that was built in 2006 for a reasonable price every month. Sure, I don't own the place and when my lease expires I guess the person that owns it could decide the want it back, but that is pretty unlikely. In the meantime, I have a nice house, and if the furnace or any other appliance decides to take a shiat, guess what? I call the property manager, and somebody fixes or replaces it, and my savings account stays intact. I have the additional luxury under my lease to fix minor problems (leaky faucet, etc) myself and deduct the cost from my rent if I so desire. Can you deduct the cost of a new kitchen faucet from your mortgage payment?

Brief version: Renting isn't all that bad if you have a decent landlord. It keeps your out of pocket costs consistent at the very least.


This is the reason:

Rent for similar house: ~$1900/month
Mortgage/Insurance/Property Tax = $1621
Mortgage and Property Tax Deduction = - $300.00
Net Cost = $1321

House Appreciation since purchase = ~$80,000
Principal Reduction = $400 month (and increases each month)
 
2014-03-22 03:18:24 AM  

Pincy: It's cute that anybody thought that the banks had learned anything from the last financial meltdown.  Oh wait, they did learn one thing, that the taxpayers will bail them out.


It is also cute how many people comment from ignorance w/o reading article or thread.
 
2014-03-22 08:49:45 AM  

Smackledorfer: 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.


Yeah, Obama's really Jimmy Carter III. Duh.
 
2014-03-22 09:14:28 AM  
now that we are starting to cross the seven year mark on people who went bankrupt in the bust..lets see who is stupid enough to do it again...
 
2014-03-22 09:17:00 AM  

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.


This!

Also, the Alt-A mortgages (loans issued in 2006 had a 40% default rate), no to negative down payment mortgages, and issuance of credit default swaps on those fraudulent mortgage financial thingies (AIG anyone?)
 
2014-03-22 11:20:46 AM  

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.


You're assuming Millennials can even afford to buy a starter home.

/ Damn student loans.
 
kab
2014-03-22 11:33:11 AM  
"They're just Americans who want to buy homes but can't, so we're here to fleece them.  Wait, I mean help them." said Dallas, who used to run First Franklin, a subprime lender that went bust in the mortgage meltdown.
 
2014-03-22 12:30:06 PM  

impaler: Tell that to Washington Mutual and Lehman Brothers.

Banks learned that MOST of them will get away with it if they ALL fail at the same time.


What, do you think the execs there DIDN'T make out like bandits?
 
2014-03-22 12:50:24 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.


THIS
 
2014-03-22 01:58:21 PM  

Greybrd: 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.


As someone who literally deals with auto lenders every day at work (F/I guy, accountant, title clerk at a dealership), you're on to something.

The shady places that thrive on volume over quality of loans (let's call them "Santander Consumer Lending USA") are sending out coupons for $500 cash off the price or adjustable rate loans that start at 0% for the first 24 or 36 months for very specific models of vehicle: Jeep and top-levels of trim packages for Ram trucks. When I process deals for people like that, I notice that they tend to have marginal credit scores in the low-mid 600s.

If I was the cynical sort who distrusted corporations, I would wager that these people are being set up to fail so the company can pocket the money and repo the car which has a high re-sale value while also reaming the poor bastard for processing fees. But I'm not, and I trust international banks completely.
 
2014-03-22 02:26:12 PM  

kab: "They're just Americans who want to buy homes but can't, so we're here to fleece them.  Wait, I mean help them." said Dallas, who used to run First Franklin, a subprime lender that went bust in the mortgage meltdown. they need to farking wait until they can afford the damn things and have the fiscal discipline to keep up with payments.


But I want it NOW, golrammit!
 
2014-03-22 03:05:47 PM  

Snarcoleptic_Hoosier: Greybrd: 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.

As someone who literally deals with auto lenders every day at work (F/I guy, accountant, title clerk at a dealership), you're on to something.

The shady places that thrive on volume over quality of loans (let's call them "Santander Consumer Lending USA") are sending out coupons for $500 cash off the price or adjustable rate loans that start at 0% for the first 24 or 36 months for very specific models of vehicle: Jeep and top-levels of trim packages for Ram trucks. When I process deals for people like that, I notice that they tend to have marginal credit scores in the low-mid 600s.

If I was the cynical sort who distrusted corporations, I would wager that these people are being set up to fail so the company can pocket the money and repo the car which has a high re-sale value while also reaming the poor bastard for processing fees. But I'm not, and I trust international banks completely.


Aah, good old Banco Satander. Wait, Santander. Yeah, that was a typo and not at all intentional.

/first rule of banking is do not open an Account with Santander
 
2014-03-22 07:58:15 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.


What do you think happens at most financial companies after originating mortages?
 
2014-03-22 08:00:21 PM  

pute kisses like a man: these matter more: debt to income, stability of income, value of collateral, value of other collateral/assets, and amount of down payment.


Man, I'll never get a home loan.

/Don't want to own a home
//maint. costs kill
 
2014-03-22 08:03:00 PM  

pute kisses like a man: / 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.


Of course, none of those shenanigans could ever happen again, because Congress got pissed and regulated the industry so they couldn't crash the economy again.


/made it 2 sec. before I couldn't hold back the lulz.
 
2014-03-22 08:49:05 PM  
So when do we start blaming the blah homeowners Community Reinvestment Act this time?
 
2014-03-22 09:13:35 PM  

pueblonative: So when do we start blaming the blah homeowners Community Reinvestment Act this time?


The law is still on the books, and it was the driving force behind the first housing bubble/crash, so any sane person would never have stopped blaming it.
 
2014-03-22 09:15:26 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.


Are you talking about the regulations that punished banks for not catering to "underserved*" banking customers.

* - which means, "those who are unlikely to pay back loans."
 
2014-03-22 09:16:33 PM  

DrPainMD: pueblonative: So when do we start blaming the blah homeowners Community Reinvestment Act this time?

The law is still on the books, and it was the driving force behind the first housing bubble/crash, so any sane person would never have stopped blaming it.


Sure it was, snookums.

Now go get another cookie and some milk, mama will be in to make sure the big bad blah man that lives in the white house isn't gonna scare you again.
 
2014-03-22 09:23:00 PM  

SlothB77: 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.


The banks weren't gambling, they were doing what was necessary to not get hosed by the government. Clinton, literally, called bankers into the Oval Office and told them that he would ruin them if they didn't start making home loans to poor people and people with bad credit. It was the fulfillment of one of his most often-repeated campaign promises. People act as if Clinton didn't promise everybody, regardless of ability to pay, the "right" to own a home, even tho that's the reason that they voted for him.
 
2014-03-22 09:25:37 PM  

pute kisses like a man: 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.


None of that matters if the person has a history of not paying his bills. Oh, and, debt-to-income is part of what makes up your credit score.
 
2014-03-22 09:29:02 PM  

pueblonative: DrPainMD: pueblonative: So when do we start blaming the blah homeowners Community Reinvestment Act this time?

The law is still on the books, and it was the driving force behind the first housing bubble/crash, so any sane person would never have stopped blaming it.

Sure it was, snookums.

Now go get another cookie and some milk, mama will be in to make sure the big bad blah man that lives in the white house isn't gonna scare you again.


Thank you for providing factual information to refute my claim. You have changed my mind.

It's a fact, provable beyond any doubt, that Clinton was the main cause of the bubble/crash. You refute it with snark because that's all you have.
 
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