they do not KNOW you can or can not afford it.. they do not KNOW what you may or may not have in the works.. they do not KNOW that you are not about to start a very profitable business..

 

the point is if the deceive you and tell you the terms are NOT what they are.. then sure.. they sure liable.. but if they TELL YOU exactly what the terms are.. and you buy it anyway.. how the hell is it the banks fault? they said.. it will cost x y and z.. and you say OK sign me up..

 

and if you READ what I right.. you would understand that I think NO ONE deserves a bail out..

 

The bank doesn't know if someone can afford the loan? You sure about that? I had TWO mortgage lenders tell me flat-out to rewrite my application and increase my monthly income so I could qualify for a larger loan. Was I the only one this happened to? I walked out on both. Oddly enough, I had already qualified for more than I wanted to spend on a house at other banks with my legitimate income. That is how desperate some bankers/banks were to get people to spend more. A home buyer who followed this suggestion and lied about their income is an irresponsible idiot who deserves his/her consequence. What about the banker?

 

Banks used to verify income and assets. You had to furnish pay stubs or tax returns and your assets were subject to verification. Then many in the industry switched over to "stated-income" loans often called liars loans by the very banks who offered them.

 

The part in bold in particular is what confuses me about your position. The bank doesn't know you're not about to start a very profitable business? Perhaps, but maybe the home buyer didn't know he was about to lose his high-paying job or suffer a catastrophic illness and end up in default on his mortgage.

 

Banks knew exactly what they were doing here. They sold people mortgages that they knew they couldn't afford and then bundled them up and sold them off. The dirty not-so-secret in the industry was that sub-prime loans could be tolerated because they were a) profitable since sub-prime borrowers could be charged higher interest and b) low risk for the bank of origin since these loans could be sold off to Fannie Mae once the fees were collected

 

I'm really not trying to tick you off here so I apologize if it has that effect.

The bank doesn't know if someone can afford the loan? You sure about that? I had TWO mortgage lenders tell me flat-out to rewrite my application and increase my monthly income so I could qualify for a larger loan. Was I the only one this happened to? I walked out on both. Oddly enough, I had already qualified for more than I wanted to spend on a house at other banks with my legitimate income. That is how desperate some bankers/banks were to get people to spend more. A home buyer who followed this suggestion and lied about their income is an irresponsible idiot who deserves his/her consequence. What about the banker?

 

Banks used to verify income and assets. You had to furnish pay stubs or tax returns and your assets were subject to verification. Then many in the industry switched over to "stated-income" loans often called liars loans by the very banks who offered them.

 

The part in bold in particular is what confuses me about your position. The bank doesn't know you're not about to start a very profitable business? Perhaps, but maybe the home buyer didn't know he was about to lose his high-paying job or suffer a catastrophic illness and end up in default on his mortgage.

 

Banks knew exactly what they were doing here. They sold people mortgages that they knew they couldn't afford and then bundled them up and sold them off. The dirty not-so-secret in the industry was that sub-prime loans could be tolerated because they were a) profitable since sub-prime borrowers could be charged higher interest and b) low risk for the bank of origin since these loans could be sold off to Fannie Mae once the fees were collected

 

I'm really not trying to tick you off here so I apologize if it has that effect.

I had a no doc loan so I know all about it.. it someone encourages you to cheat on your taxes.. and you do.. it is their fault.. or yours.. if a coworker encourages you to take a 20 from the drawer.. whos fault is it... if there is someone in school who tells you to cheat on the exam.. and you do.. who is ultimately at fault..

 

you control your own destiny.. you are not a puppet.. you made the right choices.. others did not.. it is not the entire banking industries fault that there are a bunch of D bag mortgage lenders.. just like not all cops are bad.. just like not all used car salesman are snakes.. again.. one last time.. at the end of the day.. it is YOUR call..

I had TWO mortgage lenders tell me flat-out to rewrite my application and increase my monthly income so I could qualify for a larger loan.

 

If they did that, how would the person who did that think they could pay that off????

 

I hope non of these bankers asked anyone to jump off a bridge..

 

Harry