Comments on: Consumer Groups Push for Loan “Freezes” http://blownmortgage.com/2007/10/21/consumer-groups-push-for-loan-freezes/ #1 Free Home Loan Modification & Debt Relief Help For US Home Owners - Truths, Facts & News About the Mortgage Industry Sat, 21 Nov 2009 12:13:18 -0700 http://wordpress.org/?v=2.8.3 hourly 1 By: GPS http://blownmortgage.com/2007/10/21/consumer-groups-push-for-loan-freezes/comment-page-1/#comment-6331 GPS Fri, 02 Nov 2007 22:37:02 +0000 http://blownmortgage.com/2007/10/21/consumer-groups-push-for-loan-freezes/#comment-6331 I am reading all of this and I am really confused. 4 years ago, I got one of those ARMs at around 6% with lower than average credit scores. I was told that after 2 years of current payments I would be able to refinance into a fixed rate because my score would increase. Well, in two years my score did increase well above the guidelines that I was told I needed. When I went in to refinance, I was rejected because the guidelines had increased dramatically and I was stuck. Now after payment arrangements, modifications, etc. 2 years later, I have filed bankruptcy and my payment has almost doubled from $658/ mo to $1200/mo. Now my credit score is so terrible. I can't even rent. There are 4 other houses on my street that have been on the market for over a year. I don't think that even selling is an option. And rent for a house the size I need will cost as much as my current payment. So for alot of us, there is absoutly no option at all other than to go down with the ship. Maybe not fix the loans at the 'teaser' rates, but find a reasonable competetive rate that is afordable to the people that were lured into this financial hole. I am reading all of this and I am really confused. 4 years ago, I got one of those ARMs at around 6% with lower than average credit scores. I was told that after 2 years of current payments I would be able to refinance into a fixed rate because my score would increase. Well, in two years my score did increase well above the guidelines that I was told I needed. When I went in to refinance, I was rejected because the guidelines had increased dramatically and I was stuck. Now after payment arrangements, modifications, etc. 2 years later, I have filed bankruptcy and my payment has almost doubled from $658/ mo to $1200/mo. Now my credit score is so terrible. I can’t even rent. There are 4 other houses on my street that have been on the market for over a year. I don’t think that even selling is an option. And rent for a house the size I need will cost as much as my current payment. So for alot of us, there is absoutly no option at all other than to go down with the ship. Maybe not fix the loans at the ‘teaser’ rates, but find a reasonable competetive rate that is afordable to the people that were lured into this financial hole.

]]> By: Deek http://blownmortgage.com/2007/10/21/consumer-groups-push-for-loan-freezes/comment-page-1/#comment-5861 Deek Tue, 23 Oct 2007 17:01:26 +0000 http://blownmortgage.com/2007/10/21/consumer-groups-push-for-loan-freezes/#comment-5861 Can I refi out of my affordable 30 year fixed into some toxic mortgage, get some sweet cashback and then get a sweet, sweet government bailout? I don't think that I should be penalized for being fiscally responsible and living within my means. Can I refi out of my affordable 30 year fixed into some toxic mortgage, get some sweet cashback and then get a sweet, sweet government bailout?

I don’t think that I should be penalized for being fiscally responsible and living within my means.

]]> By: EyesWideOpen http://blownmortgage.com/2007/10/21/consumer-groups-push-for-loan-freezes/comment-page-1/#comment-5849 EyesWideOpen Tue, 23 Oct 2007 06:04:40 +0000 http://blownmortgage.com/2007/10/21/consumer-groups-push-for-loan-freezes/#comment-5849 Simple Moe, I data base my clients and keep in contact via email, birthday cards, etc. Its called building relationships and building referrals. Moe, most of my clients are "A" paper and investors. Try it sometimes, really. Simple Moe,
I data base my clients and keep in contact via email, birthday cards, etc. Its called building relationships and building referrals. Moe, most of my clients are “A” paper and investors. Try it sometimes, really.

]]> By: Moe Bedard http://blownmortgage.com/2007/10/21/consumer-groups-push-for-loan-freezes/comment-page-1/#comment-5838 Moe Bedard Tue, 23 Oct 2007 00:48:12 +0000 http://blownmortgage.com/2007/10/21/consumer-groups-push-for-loan-freezes/#comment-5838 Non of your clients are facing foreclosure. Wow, what a great LO you are. So you seriously know for a fact that all the loans you have sold, that no one is in foreclosure. Do they call you every day and give you up dates? This is far more then a correction. This is about our whole economy and if you guys are going to sit here and say the market needs to correct itself and just let these 2 million homeowners get foreclosed on, then you're in for a big suprise when this is all said and done. The economic implications are more than I think any of us can comprehend. We are talking about trilllions in losses and depressed real estate, not much consumer cash flowing in the economy. Are you even watching the way the stock market is reacting to this. What about the world? Maybe you all should have some talks with real economist who know what the hell is happening right now. We are HEADING into a major recession. Whether you want to face the facts or not. It's your choice. Most comments on here are based on greed and not reality. Sad but true. Non of your clients are facing foreclosure. Wow, what a great LO you are. So you seriously know for a fact that all the loans you have sold, that no one is in foreclosure. Do they call you every day and give you up dates?

This is far more then a correction. This is about our whole economy and if you guys are going to sit here and say the market needs to correct itself and just let these 2 million homeowners get foreclosed on, then you’re in for a big suprise when this is all said and done. The economic implications are more than I think any of us can comprehend.

We are talking about trilllions in losses and depressed real estate, not much consumer cash flowing in the economy. Are you even watching the way the stock market is reacting to this. What about the world?

Maybe you all should have some talks with real economist who know what the hell is happening right now. We are HEADING into a major recession. Whether you want to face the facts or not. It’s your choice.

Most comments on here are based on greed and not reality. Sad but true.

]]> By: EyesWideOpen http://blownmortgage.com/2007/10/21/consumer-groups-push-for-loan-freezes/comment-page-1/#comment-5831 EyesWideOpen Mon, 22 Oct 2007 20:31:16 +0000 http://blownmortgage.com/2007/10/21/consumer-groups-push-for-loan-freezes/#comment-5831 I'm glad to read other people who agree with letting the home owners move who cannot afford the house they're living in currently. A freeze on teaser rates only rewards the home owner who never should got the home in the first place. I been in the business for over 5 years as a loan officer and none of my clients are facing foreclosures. Even my subprime clients were educated about the dangers of 2/28, 3/27, or pay option arms. I know AE's who push these products but its up to me to have the respect of my clients and my DRE license! I’m glad to read other people who agree with letting the home owners move who cannot afford the house they’re living in currently. A freeze on teaser rates only rewards the home owner who never should got the home in the first place. I been in the business for over 5 years as a loan officer and none of my clients are facing foreclosures. Even my subprime clients were educated about the dangers of 2/28, 3/27, or pay option arms. I know AE’s who push these products but its up to me to have the respect of my clients and my DRE license!

]]> By: JAG http://blownmortgage.com/2007/10/21/consumer-groups-push-for-loan-freezes/comment-page-1/#comment-5830 JAG Mon, 22 Oct 2007 20:24:38 +0000 http://blownmortgage.com/2007/10/21/consumer-groups-push-for-loan-freezes/#comment-5830 Moe, What you are talking about is commonly referred to as Moral Hazard. As in, if you could not afford a home, it is not the taxpayer's, bank's, or anyone else's responsibility to bail you out of your ill-timed, ill-conceived decision. To think that I have to bail out a FB, because they bought more house then they should have is crazy. Please, let's stay away from rewarding the inpatient, big-box house buyers and not give ANYONE a bailout. Certainly, if I'm going to be spending a quarter million dollars, I better damn well understand what I'm signing. The MARKET needs to correct itself, without another government bailout only meant for the lenders who line the politicians pockets. Moe,

What you are talking about is commonly referred to as Moral Hazard. As in, if you could not afford a home, it is not the taxpayer’s, bank’s, or anyone else’s responsibility to bail you out of your ill-timed, ill-conceived decision. To think that I have to bail out a FB, because they bought more house then they should have is crazy. Please, let’s stay away from rewarding the inpatient, big-box house buyers and not give ANYONE a bailout.

Certainly, if I’m going to be spending a quarter million dollars, I better damn well understand what I’m signing.

The MARKET needs to correct itself, without another government bailout only meant for the lenders who line the politicians pockets.

]]> By: AntiNAR http://blownmortgage.com/2007/10/21/consumer-groups-push-for-loan-freezes/comment-page-1/#comment-5829 AntiNAR Mon, 22 Oct 2007 20:22:30 +0000 http://blownmortgage.com/2007/10/21/consumer-groups-push-for-loan-freezes/#comment-5829 Two things will happen if Ms. Bair's plan were implemented: 1) No more ARMs would be available from lenders... ever. No lender would take the chance that this might happen again where they'd be stuck with the lower interest for the life of the loan. 2) Fixed loans would cost more, to recover the "losses" lenders would take on the current set of "fixed ARMS" Or maybe that's what she's trying to achieve.... Two things will happen if Ms. Bair’s plan were implemented:

1) No more ARMs would be available from lenders… ever. No lender would take the chance that this might happen again where they’d be stuck with the lower interest for the life of the loan.

2) Fixed loans would cost more, to recover the “losses” lenders would take on the current set of “fixed ARMS”

Or maybe that’s what she’s trying to achieve….

]]> By: JKB http://blownmortgage.com/2007/10/21/consumer-groups-push-for-loan-freezes/comment-page-1/#comment-5826 JKB Mon, 22 Oct 2007 18:51:37 +0000 http://blownmortgage.com/2007/10/21/consumer-groups-push-for-loan-freezes/#comment-5826 Every one of these borrowers they want to save with an arbitrary loan term modification, i.e., rate freeze, have a vested interest in the future mortgage market. Unless they plan on dying in that house. As such to arbitrarily freeze the rates will kill any future securitized mortgage market. Who'd be dumb enough to buy a contract whose terms are "fluid." Who would write a contract with someone society has deemed to be incompetent to be held to the terms? True these contracts won't pay off but default risk was the investor's problem from the start. The fact that it was poorly rated by the "rating" agencies is getting dealt with, i.e., no one trust the rating agencies anymore. Also, what do we do about the Option ARMS and Alt-A reseting in 2009-2012. Do we freeze these people at a negative amortization or I/O rate? Who will invest in mortgages if Treasuries give a better return? If anything happens it has to be with terms that weed out the bad actors. Such as showing occupancy for preceding 3 years or since purchase if less, documentation of income on original loan (at least for period since loan inception), and only on primary residence. Maybe suppress adjustment to the 30-yr fixed rate with a 5 yr prepayment penalty to avoid churning. That would permit real longterm homebuyers to stay in their home and let the investors and liars take their chances. Every one of these borrowers they want to save with an arbitrary loan term modification, i.e., rate freeze, have a vested interest in the future mortgage market. Unless they plan on dying in that house. As such to arbitrarily freeze the rates will kill any future securitized mortgage market. Who’d be dumb enough to buy a contract whose terms are “fluid.” Who would write a contract with someone society has deemed to be incompetent to be held to the terms?

True these contracts won’t pay off but default risk was the investor’s problem from the start. The fact that it was poorly rated by the “rating” agencies is getting dealt with, i.e., no one trust the rating agencies anymore.

Also, what do we do about the Option ARMS and Alt-A reseting in 2009-2012. Do we freeze these people at a negative amortization or I/O rate? Who will invest in mortgages if Treasuries give a better return?

If anything happens it has to be with terms that weed out the bad actors. Such as showing occupancy for preceding 3 years or since purchase if less, documentation of income on original loan (at least for period since loan inception), and only on primary residence. Maybe suppress adjustment to the 30-yr fixed rate with a 5 yr prepayment penalty to avoid churning. That would permit real longterm homebuyers to stay in their home and let the investors and liars take their chances.

]]> By: Jillayne Schlicke http://blownmortgage.com/2007/10/21/consumer-groups-push-for-loan-freezes/comment-page-1/#comment-5804 Jillayne Schlicke Mon, 22 Oct 2007 04:48:38 +0000 http://blownmortgage.com/2007/10/21/consumer-groups-push-for-loan-freezes/#comment-5804 This whole subprime mess is turning political, as I predicted it would in April. If any of us believe that we're going to escape without at least 4 new federal laws coming our way over the next several years, you're nuts. Our elected officials are under the assumption that they'll be held accountable to "do something" and they THINK, unknowingly, that everyone is going to be in favor of stupid ideas like this one. So who will have more pull with their congressmen and senators....the subprime homeowners OR the "no bailout" crowd? Be a voice and start the dialogue with your elected official now. Send him/her an email. If not, don't whine when your taxes go up. This whole subprime mess is turning political, as I predicted it would in April.

If any of us believe that we’re going to escape without at least 4 new federal laws coming our way over the next several years, you’re nuts.

Our elected officials are under the assumption that they’ll be held accountable to “do something” and they THINK, unknowingly, that everyone is going to be in favor of stupid ideas like this one.

So who will have more pull with their congressmen and senators….the subprime homeowners OR the “no bailout” crowd? Be a voice and start the dialogue with your elected official now.

Send him/her an email.

If not, don’t whine when your taxes go up.

]]> By: EyesWideOpen http://blownmortgage.com/2007/10/21/consumer-groups-push-for-loan-freezes/comment-page-1/#comment-5803 EyesWideOpen Mon, 22 Oct 2007 04:06:58 +0000 http://blownmortgage.com/2007/10/21/consumer-groups-push-for-loan-freezes/#comment-5803 If the borrower cannot qualify refinancing their existing note, then why should they be rewarded by freezing their teaser rate. To freeze the teaser rate would be rewarding someone who really should not own the property. I deal mostly with "A" paper and realize the flip side to the crisis. Subprime home owners who cannot refinance have done little to increase their subprime credit. Since, SIVA quidelines have tighten up to get investors buying shrt term notes this freeze will surely keep them away. I'm not trying to be mean here but you have to look at the complete totality of the whole situation! If the borrower cannot qualify refinancing their existing note, then why should they be rewarded by freezing their teaser rate. To freeze the teaser rate would be rewarding someone who really should not own the property. I deal mostly with “A” paper and realize the flip side to the crisis. Subprime home owners who cannot refinance have done little to increase their subprime credit. Since, SIVA quidelines have tighten up to get investors buying shrt term notes this freeze will surely keep them away. I’m not trying to be mean here but you have to look at the complete totality of the whole situation!

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