Comments on: Senator “Brokers are the problem” Dodd is mum on lender culpability http://blownmortgage.com/2007/10/08/senator-brokers-are-the-problem-dodd-is-mum-on-lender-culpability/ #1 Free Home Loan Modification & Debt Relief Help For US Home Owners - Truths, Facts & News About the Mortgage Industry Sat, 07 Nov 2009 02:53:18 -0700 http://wordpress.org/?v=2.8.3 hourly 1 By: William http://blownmortgage.com/2007/10/08/senator-brokers-are-the-problem-dodd-is-mum-on-lender-culpability/comment-page-1/#comment-5121 William Tue, 09 Oct 2007 21:16:50 +0000 http://blownmortgage.com/2007/10/08/senator-brokers-are-the-problem-dodd-is-mum-on-lender-culpability/#comment-5121 Consumers most definitley played a large role...that of a patsy. 1) Consumers take loan 2)brokers get commissions 3)lenders get interest payments 4)Rates go up, consumers lose home to lenders 5) Mortgage Industry blames consumer, Lenders blame consumers, Congress blames brokers....Consumer blames "The American Dream" 6) Lenders "tighten" standards 7) Consumers can't get loan without 20% down and forced to rent in trashy part of town 8) Lenders merge and consolidate enhancing profit margins 9) Mortgage industry professionals claim, this "correction" is necessary 10) Fed lowers interest rates to start the process over Consumers most definitley played a large role…that of a patsy. 1) Consumers take loan 2)brokers get commissions 3)lenders get interest payments 4)Rates go up, consumers lose home to lenders 5) Mortgage Industry blames consumer, Lenders blame consumers, Congress blames brokers….Consumer blames “The American Dream” 6) Lenders “tighten” standards 7) Consumers can’t get loan without 20% down and forced to rent in trashy part of town 8) Lenders merge and consolidate enhancing profit margins 9) Mortgage industry professionals claim, this “correction” is necessary 10) Fed lowers interest rates to start the process over

]]> By: CAJones http://blownmortgage.com/2007/10/08/senator-brokers-are-the-problem-dodd-is-mum-on-lender-culpability/comment-page-1/#comment-5114 CAJones Tue, 09 Oct 2007 18:21:17 +0000 http://blownmortgage.com/2007/10/08/senator-brokers-are-the-problem-dodd-is-mum-on-lender-culpability/#comment-5114 Someone should tell the esteemed 1st term Senator Dodd (D-umb) that Wells Fargo, Chase, Deutsche Bank, et.al. had entire subprime divisions - and that brokers were sending files that met underwriting guidelines, written not by the broker but, by the banks! Maybe he is an idiot. Someone should tell the esteemed 1st term Senator Dodd (D-umb) that Wells Fargo, Chase, Deutsche Bank, et.al. had entire subprime divisions – and that brokers were sending files that met underwriting guidelines, written not by the broker but, by the banks!

Maybe he is an idiot.

]]> By: Purchase Guy http://blownmortgage.com/2007/10/08/senator-brokers-are-the-problem-dodd-is-mum-on-lender-culpability/comment-page-1/#comment-5105 Purchase Guy Tue, 09 Oct 2007 16:52:41 +0000 http://blownmortgage.com/2007/10/08/senator-brokers-are-the-problem-dodd-is-mum-on-lender-culpability/#comment-5105 Ok, so idiot was a stretch, but Chris Dodd is the representative of my home state of CT, and let's just say he offers as much to the political arena as the state itself offers to the fun arena. Ok, so idiot was a stretch, but Chris Dodd is the representative of my home state of CT, and let’s just say he offers as much to the political arena as the state itself offers to the fun arena.

]]> By: Michelle http://blownmortgage.com/2007/10/08/senator-brokers-are-the-problem-dodd-is-mum-on-lender-culpability/comment-page-1/#comment-5064 Michelle Tue, 09 Oct 2007 05:54:10 +0000 http://blownmortgage.com/2007/10/08/senator-brokers-are-the-problem-dodd-is-mum-on-lender-culpability/#comment-5064 What I find most disgraceful is the lack of regard given to the Mortgage Brokers, an exclusive percentage which are credible, ethical and just down right great to work with, have to deal directly with the morans, idiots and imbeciles, OFTEN known as, The Consumer, The Investor and moreover, The Government which oversees their ability to conduct business. If the government is pointing their finger and blaming the mortgage broker, like my daddy always said, there are 3 fingers pointing right back at them.........the ignorance astounds me. It has been repeated over again, brokers were merely following the guidelines setforth by the Investors (including wallstreet investors, et al.) who pulled the trigger on the smoking gun, which everybody is trying to pass as if it is the game of "Hot Potatoes". I say BROKERS, keep up the good work!! I LOOK FORWARD TO SHARING THIS BATTLEFIELD WITH YOU ALL!!! What I find most disgraceful is the lack of regard given to the Mortgage Brokers, an exclusive percentage which are credible, ethical and just down right great to work with, have to deal directly with the morans, idiots and imbeciles, OFTEN known as, The Consumer, The Investor and moreover, The Government which oversees their ability to conduct business. If the government is pointing their finger and blaming the mortgage broker, like my daddy always said, there are 3 fingers pointing right back at them………the ignorance astounds me. It has been repeated over again, brokers were merely following the guidelines setforth by the Investors (including wallstreet investors, et al.) who pulled the trigger on the smoking gun, which everybody is trying to pass as if it is the game of “Hot Potatoes”. I say BROKERS, keep up the good work!! I LOOK FORWARD TO SHARING THIS BATTLEFIELD WITH YOU ALL!!!

]]> By: Morgan Brown http://blownmortgage.com/2007/10/08/senator-brokers-are-the-problem-dodd-is-mum-on-lender-culpability/comment-page-1/#comment-5061 Morgan Brown Tue, 09 Oct 2007 05:10:20 +0000 http://blownmortgage.com/2007/10/08/senator-brokers-are-the-problem-dodd-is-mum-on-lender-culpability/#comment-5061 Purchase Guy - There has to be borrower responsiblity to the documents that they signed. We know that borrowers chose toxic loans for the lowest payments. They were probably warned, probably told by someone that a 2-year fixed wasn't a good idea. That cashing out to 100% LTV with an 80/20 subprime combo was a bad idea and they still signed. On the otherhand, there are clearly borrowers who were duped. Further, its not like borrowers could easily get to the bottom of what, exactly, they were signing. A great post on Paul Kedrosky's Infectious Greed blog highlights the problem well: http://paul.kedrosky.com/archives/2007/10/04/the_hitchhikers.html From the post: "..."Didn't you read the documents?". I am reminded of a favorite Hitchhiker's Guide to the Galaxy moment: But Mr Dent, the plans have been available in the local planning office for the last nine months." "Oh yes, well as soon as I heard I went straight round to see them, yesterday afternoon. You hadn't exactly gone out of your way to call attention to them, had you? I mean, like actually telling anybody or anything." "But the plans were on display ..." "On display? I eventually had to go down to the cellar to find them." "That's the display department." "With a flashlight." "Ah, well the lights had probably gone." "So had the stairs." "But look, you found the notice didn't you?" "Yes," said Arthur, "yes I did. It was on display in the bottom of a locked filing cabinet stuck in a disused lavatory with a sign on the door saying 'Beware of the Leopard'." Purchase Guy –

There has to be borrower responsiblity to the documents that they signed. We know that borrowers chose toxic loans for the lowest payments. They were probably warned, probably told by someone that a 2-year fixed wasn’t a good idea. That cashing out to 100% LTV with an 80/20 subprime combo was a bad idea and they still signed.

On the otherhand, there are clearly borrowers who were duped. Further, its not like borrowers could easily get to the bottom of what, exactly, they were signing. A great post on Paul Kedrosky’s Infectious Greed blog highlights the problem well:

http://paul.kedrosky.com/archives/2007/10/04/the_hitchhikers.html

From the post:

“…”Didn’t you read the documents?”. I am reminded of a favorite Hitchhiker’s Guide to the Galaxy moment:

But Mr Dent, the plans have been available in the local planning office for the last nine months.”

“Oh yes, well as soon as I heard I went straight round to see them, yesterday afternoon. You hadn’t exactly gone out of your way to call attention to them, had you? I mean, like actually telling anybody or anything.”

“But the plans were on display …”

“On display? I eventually had to go down to the cellar to find them.”

“That’s the display department.”

“With a flashlight.”

“Ah, well the lights had probably gone.”

“So had the stairs.”

“But look, you found the notice didn’t you?”

“Yes,” said Arthur, “yes I did. It was on display in the bottom of a locked filing cabinet stuck in a disused lavatory with a sign on the door saying ‘Beware of the Leopard’.”

]]> By: Morgan Brown http://blownmortgage.com/2007/10/08/senator-brokers-are-the-problem-dodd-is-mum-on-lender-culpability/comment-page-1/#comment-5060 Morgan Brown Tue, 09 Oct 2007 05:03:53 +0000 http://blownmortgage.com/2007/10/08/senator-brokers-are-the-problem-dodd-is-mum-on-lender-culpability/#comment-5060 Nice I-Man, I agree "idiot" might be a tad harsh, maybe he's an imbecile in general and an idiot when it comes to the mortgage industry? Nice I-Man, I agree “idiot” might be a tad harsh, maybe he’s an imbecile in general and an idiot when it comes to the mortgage industry?

]]> By: Russ http://blownmortgage.com/2007/10/08/senator-brokers-are-the-problem-dodd-is-mum-on-lender-culpability/comment-page-1/#comment-5057 Russ Tue, 09 Oct 2007 02:01:43 +0000 http://blownmortgage.com/2007/10/08/senator-brokers-are-the-problem-dodd-is-mum-on-lender-culpability/#comment-5057 Morgan: I am glad you found that graph as I was wondering if he was just another lapdog for mortgage banks. Dodd is one of the reasons that I won't be voting for Democrats as I addressed in a post a few weeks ago for this very issue: http://smartmortgageadvice.wordpress.com/2007/09/20/why-i-cant-vote-for-democrats/ Morgan:

I am glad you found that graph as I was wondering if he was just another lapdog for mortgage banks. Dodd is one of the reasons that I won’t be voting for Democrats as I addressed in a post a few weeks ago for this very issue:

http://smartmortgageadvice.wordpress.com/2007/09/20/why-i-cant-vote-for-democrats/

]]> By: I-Man http://blownmortgage.com/2007/10/08/senator-brokers-are-the-problem-dodd-is-mum-on-lender-culpability/comment-page-1/#comment-5056 I-Man Tue, 09 Oct 2007 01:03:29 +0000 http://blownmortgage.com/2007/10/08/senator-brokers-are-the-problem-dodd-is-mum-on-lender-culpability/#comment-5056 I think 'idiot' is a bit harsh - By definition, idiot status is for those with iQs below 20. Moron seems more appropriate - IQ between 40 + 69. The real question is why do elect these idiots, morons, and imbeciles? I think ‘idiot’ is a bit harsh – By definition, idiot status is for those with iQs below 20. Moron seems more appropriate – IQ between 40 + 69. The real question is why do elect these idiots, morons, and imbeciles?

]]> By: Purchase Guy http://blownmortgage.com/2007/10/08/senator-brokers-are-the-problem-dodd-is-mum-on-lender-culpability/comment-page-1/#comment-5051 Purchase Guy Mon, 08 Oct 2007 22:39:43 +0000 http://blownmortgage.com/2007/10/08/senator-brokers-are-the-problem-dodd-is-mum-on-lender-culpability/#comment-5051 I like that you are taking on consumer responsibility in this post. I mean, I don't think YSP is the issue here either. The issue is that consumers don't take the time to understand their options, and don't have the correct information to make a smart finance decision. It isn't a "bad" thing for mortgage brokers, bankers, or lenders to make money (YSP or otherwise), much the same way that it isn't bad for a car salesman or a baker to make money by charging more for their products than they are worth. The problem is, that much like myself when I buy a car, I take the guy's word for it instead of doing my due diligence. The consumer is to blame for a lot of this mess, but the solution should be easier to digest info for them, so they know what they are getting into. BTW, Chris Dodd is an idiot. He knows not of what he speaks. I like that you are taking on consumer responsibility in this post. I mean, I don’t think YSP is the issue here either. The issue is that consumers don’t take the time to understand their options, and don’t have the correct information to make a smart finance decision. It isn’t a “bad” thing for mortgage brokers, bankers, or lenders to make money (YSP or otherwise), much the same way that it isn’t bad for a car salesman or a baker to make money by charging more for their products than they are worth.

The problem is, that much like myself when I buy a car, I take the guy’s word for it instead of doing my due diligence. The consumer is to blame for a lot of this mess, but the solution should be easier to digest info for them, so they know what they are getting into.

BTW, Chris Dodd is an idiot. He knows not of what he speaks.

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