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Flatulo

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68. I got my first mortgage in 1986. $110k, 12.75%

Wed Apr 3, 2013, 12:52 PM

Apr 2013

The mortgage company crawled up my ass with a microscope. I had a deposit of $5,000 in my bank account, willed to me when my grandmother passed six months earlier. Well, they needed to see a death cert, copy of the will, etc. I offered to exhume her and bring her in.

Anyway, that's how tough it was to get a loan.

In the mid nineties, a friend of mine went to work for a small local mortgage company. These places were springing up everywhere, like Starbucks. After about six months on the job she emailed me. She said the place was a money printing press. Guy comes in, lousy credit, no collateral, shitty work history - no problem. Write him a note for $300K on the spot. By the end of the day the paper was sold to a Wall St investment bank.

She told me she was making $30,000 per month.

What could go wrong?

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Obama administration pushes banks to make home loans to people with weaker credit [View all] alp227 Apr 2013 OP

It's deja vu all over again. nt OnyxCollie Apr 2013 #1

doh! gristy Apr 2013 #2

Yep, seems the politicians are serving their banker donors once again! n/t alp227 Apr 2013 #10

It's only been a few years, have we learned nothing? MrSlayer Apr 2013 #3

It was not delinquent homeowners that crashed the banks ... MindMover Apr 2013 #7

I know. They were the vehicle the banksters used to loot the place. MrSlayer Apr 2013 #19

Either you are or you aren't madokie Apr 2013 #30

What people are not realizing is that Drale Apr 2013 #4

+1 nt Live and Learn Apr 2013 #28

THIS^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ socialist_n_TN Apr 2013 #42

650 is pretty bad Yo_Mama Apr 2013 #62

Here we go again. MichiganVote Apr 2013 #5

What could possibly go wrong? subterranean Apr 2013 #6

What the hell??? lexw Apr 2013 #8

it worked so well last time putitinD Apr 2013 #9

Correct me if I am wrong... iandhr Apr 2013 #11

I don't think we have in the sense of making sure the bail out money reached main street... midnight Apr 2013 #31

Instead of public housing . . . caseymoz Apr 2013 #12

The problem wasn't lending to poor people geek tragedy Apr 2013 #14

Of course it was PSPS Apr 2013 #21

They're not proposing to bring back liar loans geek tragedy Apr 2013 #32

We already have artificially low teaser rates. Igel Apr 2013 #83

Since the vast majority of loans are fixed-rate geek tragedy Apr 2013 #84

I see builders' signs ... Myrina Apr 2013 #47

As I understand it, the percentage of mortgages that were sub-prime had soared to historic Flatulo Apr 2013 #25

Bigger problem was when 'prime' loans began performing geek tragedy Apr 2013 #36

And other debt Yo_Mama Apr 2013 #66

I'm in absolute agreement about "ability to pay" being the geek tragedy Apr 2013 #67

It's complex Yo_Mama Apr 2013 #69

Short-term there is a risk of loss of equity/down payment geek tragedy Apr 2013 #74

Yes, but the long term doesn't matter if the short term doesn't work Yo_Mama Apr 2013 #92

I would quibble that it wasn't the notion that geek tragedy Apr 2013 #93

Thanks for a great post! I'm sure it took some time Flatulo Apr 2013 #80

I got my first mortgage in 1986. $110k, 12.75% Flatulo Apr 2013 #68

Our lender threw a fit because my wife transferred geek tragedy Apr 2013 #70

Lol - we're a pendulum-y kind of people. nt Flatulo Apr 2013 #72

Please read #88 - an explosion in lending, this Reuters article specific to subprime auto loans n/t progree Apr 2013 #89

Auto and residential mortgages are completely different sectors of the economy. geek tragedy Apr 2013 #90

I know, but the article mentions subprime mortgage securities as another mini-bubble, although just progree Apr 2013 #91

Yep. Hassin Bin Sober Apr 2013 #51

Most people don't understand how complex mortgage lending criteria are. geek tragedy Apr 2013 #53

Also the "CRA did it" crowd magellan Apr 2013 #61

Government should never encourage private 3rd party loans. caseymoz Apr 2013 #71

So, people should be forced to pay cash if they want to own a home? geek tragedy Apr 2013 #75

Did I forget to mention grants? caseymoz Apr 2013 #76

How is the government supposed to raise enough money geek tragedy Apr 2013 #77

Really? We can't? caseymoz Apr 2013 #78

The problem is that private industry is not willing to take the geek tragedy Apr 2013 #79

You have to compare that $100 billion . . . caseymoz Apr 2013 #87

The pendulum has swung too far the other way. geek tragedy Apr 2013 #13

yep daybranch Apr 2013 #15

How did the conversation get here ???? Purplehazed Apr 2013 #22

Um ... Fact free generalisations denem Apr 2013 #23

Nobody is proposing giving loans to people geek tragedy Apr 2013 #33

+1 DCBob Apr 2013 #26

You left out the all the buyers from other countries. nt Live and Learn Apr 2013 #29

Here in NYC, absolutely. nt geek tragedy Apr 2013 #34

He should have nationalized a few instead SHRED Apr 2013 #16

Obama nationalized the biggest lenders - Fannie & Freddie denem Apr 2013 #24

Private equity firms are buying up foreclosures by the billions of dollars. Fuddnik Apr 2013 #17

^^ This ^^ Myrina Apr 2013 #45

So people should pay their landlords' mortgages instead? geek tragedy Apr 2013 #56

The Fine Print: What The Street doesn't like is the facility to refinance existing mortgages denem Apr 2013 #18

+1 nt geek tragedy Apr 2013 #50

This is all we have left Mnpaul Apr 2013 #20

If you can't afford it, real estate is the riskiest investment you can make because its leveraged. dkf Apr 2013 #27

You realize FICO scores are irrelevant to the ability geek tragedy Apr 2013 #37

They were approving amounts based on my income. dkf Apr 2013 #38

Indeed. Earth_First Apr 2013 #39

Smart. dkf Apr 2013 #41

Obama isn't talking about encouraging banks to lend to people geek tragedy Apr 2013 #48

I couldn't have afforded to pay back what they were willing to lend to me... dkf Apr 2013 #52

You're conflating credit scores with DTI ratios. geek tragedy Apr 2013 #54

Yeah they thought I could pay off that crazy amount too...and by myself! dkf Apr 2013 #58

The limit for conforming mortgages is 28% of pre-tax income, with geek tragedy Apr 2013 #60

You can tell the lenders that at your next mortgage application...........I'm sure they will listen lunasun Apr 2013 #57

FICO has nothing to do with income. They check both your FICO credit score geek tragedy Apr 2013 #59

A FICO score of about 520 is generally the minimum that will qualify for a mortgage lunasun Apr 2013 #64

FICO is one of many variables. geek tragedy Apr 2013 #65

Please, loan sharks, get more customers! JackRiddler Apr 2013 #35

Stupidity rules. dipsydoodle Apr 2013 #40

Isn't that how 2008 happened in the first place? Myrina Apr 2013 #43

He's not the same as Bush! Doctor_J Apr 2013 #44

No, he's not. Anyone who understands mortgage lending would tell geek tragedy Apr 2013 #55

Dump the Trans Pacific Partnership and at least keep those jobs here. amandabeech Apr 2013 #46

The lenders own the homes untill they are paid off. Why aren't the lenders paying the property tax?? Sunlei Apr 2013 #49

"assuring banks they won't face recriminations" Enrique Apr 2013 #63

Because it worked so well the last time? slackmaster Apr 2013 #73

Weak credit wasn't the problem davidn3600 Apr 2013 #82

O RLY? slackmaster Apr 2013 #86

Gosh. Where are Sid Dithers, Mineral Man, and NYC Skip Occulus Apr 2013 #81

Knives allowed on planes, banks urged to make loans to people with weak credit... forestpath Apr 2013 #85

I thought maybe this was Chicken Little stuff, then I read this -- Subprime auto loans explosion progree Apr 2013 #88