![[dr. bob]](/dr-bob-sm.gif)
Dr. Bob is Robert Hsiung, MD,
bob@dr-bob.orgShown: posts 1 to 3 of 3. This is the beginning of the thread.
Posted by Sigismund on December 11, 2008, at 23:11:43
On the current problems (nice and easy to grasp).....
Posted by fayeroe on December 12, 2008, at 16:32:09
In reply to Economics 101, posted by Sigismund on December 11, 2008, at 23:11:43
$$$$$$$$$$The banks had made too many bad loans. There were big holes in their balance sheets. No one knew what was truth and what was fiction.$$$$$$$$$
I have said this from the beginning of the foreclosure issues........banks knew from looking at someone's financial statement whether or not they could afford the loan they asked for...I say that the banks and the home owners both made huge mistakes. But, ultimately the bank screwed it.
Posted by garnet71 on February 7, 2009, at 18:24:38
In reply to Re: Economics 101, posted by fayeroe on December 12, 2008, at 16:32:09
Ex mortgage broker and ex loan officer here..it's a lot more complicated than that. Part of it is the nature of the field.
Appraisals are inflated much of the time - if an appraiser does not make the appraised value enough to make the loan work, they will get no business.
Loan officers work on commission - the higher the interest rate and fees charged to the borrower, the more they will make. Especially the 2 year adjustables - they pay the highest yield to the broker/loan officer.
Needless to say, I got out of that business as fast as I could--after the transition from loan officer to mortage broker!! Not just one company -I had worked for 4 and met mortgage brokers/loan officers who had also worked for "4". It's a corrupt business. Unethical. Although the job can pay 6 figures. It's not worth the guilt!!
This is the end of the thread.
Psycho-Babble Politics | Extras | FAQ
Dr. Bob is Robert Hsiung, MD,
bob@dr-bob.org
Script revised: February 4, 2008
URL: http://www.dr-bob.org/cgi-bin/pb/mget.pl
Copyright 2006-17 Robert Hsiung.
Owned and operated by Dr. Bob LLC and not the University of Chicago.