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JOE
Joined: Oct 30, 2003
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Mortgage Meltdown
October 22, 2007 - 03:02 PM
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Until recently I was an underwriter for a sub-prime mortgage company that is about to close. It seems that most media outlets and government officials fain ignorance about the real underlying cause of the problem. There is either a tendency to blame the borrower or act as though no one in the industry {or outside of it} saw this coming. They fail to mention that those who gained the most financially got off scot free while leaving the mess behind for everyone else to clean up. In my former company, the sales managers and loan officers "held the keys to the safe" while deciding which guidelines to ignore sometimes going so far as to bribe fellow underwriters to "look the other way". Sales managers often overrode an underwriter's decision they did not agree with. Other times fellow underwriters would be threatened with their job for "impeding company growth and progress" just because they refused to go along with the flagrant disregard of guidelines . I complained to the sales managers about the bribing but all I got was a formal write-up for making "inappropriate comments".
There was absolutely no support from the owner of the company all the way to the human resource representative. This company is as corrupt as they come. I can't tell you the number of sexual affairs that occurred between married and unmarried people; primarily among the management staff {at the workplace itself}. Promotions were strictly political thus moving people "up the ladder" who never proved themselves worthy or were on a final written warning to be terminated {for poor performance}. As a result of the corrupt management of this company, I and several hundred others were laid off. I believe the federal government needs to investigate this company and bring to trial those corrupt individuals who broke the law. This would set an example for the rest of the mortgage industry that absolute corruption corrupts absolutely.
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Luke Lieberman
Joined: Feb 13, 2003
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Re: Mortgage Meltdown
October 22, 2007 - 03:55 PM
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which company was it?
as a responsible borrower it is a bit discouraging to see my investment held back by all these questionable loans.
basically I need the market to turn around in the next 2 years because that is when my 5 year fix is up and I'm going to want to unload this place.
on the otherhand I just took advantage of the soft market to buy another place (outright, no loan) in Montana in a great area. I got it for a song.
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prieten47
Joined: Oct 26, 2006
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Re: Mortgage Meltdown
October 23, 2007 - 12:51 AM
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This sub-prime scandal seems to be another in a long line of scams by shady people.
Remember the savings and loan boondoggle? Lots of crooks were allowed to run savings and loans and the American taxpayer was left holding the bag.
Then came the junk bond collapse, Michael Milken and the investment banks made tons of money, got a slap on the wrist and made off like bandits.
Then came the Sillicon Valley stock collapse where countless investors lost their shirts investing in IT start-ups, while the "idea" people and the IPO banks made fortunes.
The Enron, Worldcom fiascoes aren't even cold, yet, and now we have the the sub-prime loan scandal, where loans were thrown at unworthy risks and the loans were then sold upstream to investors, who have now lost their shirts. The mortgage market has tanked as no one wants to loan money to buy a house.
How many more of these scandals can America take? Who in their right mind would invest in America? I think I know what the next scandal will be, the collapse of the US Dollar, and this one will be absolutely the fault of the George Bush.
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JOE
Joined: Oct 30, 2003
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Re: Mortgage Meltdown
December 9, 2007 - 04:13 PM
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good points
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