Comments on: Citi Starts the Death March of Stated Loans in Earnest

By: downtrend money maker

downtrend money maker — Sat, 10 May 2008 15:43:38 +0000

If I had to choose…the monkey! At least he gives the Dow a run for it's money by picking winners!!! One would have to be a “donkey” to stick up for Citi and the greedy investors who led everybody into this mess in the first place.

Given the market environment, I agree that we have to get back to sensible underwriting but please… the lenders lay out a big banquet of products for us to feast on, they are happy themselves because they belive they are making money with no end in sight, then finally realize they are loosing money due to certain economic downturn; then what do they do? They scoot us out the door and close it behind us and blame us for taking their product and selling it when they laid it out in the first place. Give a man a tool and he'll use it, no?

As professional businessmen, one would be foolish not to seize opportunities, right? With that said, I don't put 100% blame on the banks, but don't solely defend the lending practices of the banks. We all need to share in the blame. Oh, and forgot to address the service. It's HORRIBLE to say the least, and that I solely blame on Citi's management.

By: morganb

morganb — Sat, 10 May 2008 04:40:02 +0000

Peter – you're exactly right. a return to our senses is the only way out.
i think it is great they are headed towards sensible underwriting – it is
the fastest way out of this mess.

By: Mortgage Professor

Mortgage Professor — Sat, 10 May 2008 02:29:38 +0000

JRB,

Are you the monkey or the donkey?
Peter is right – this is a return to normal guidelines.
When does your shift start at Friday's?

By: Peter

Peter — Sat, 10 May 2008 01:04:23 +0000

For those of you who got into the mortgage business during the boom, stated income loans were ALWAYS intended for a “thin sliver” of the population. These loans are meant to be used to provide access to mortgages to individuals with income from comission paid jobs, business owners, and large amounts of investment income. They were never intended to be used to allow inflation of income to “make income fit”. Prior to 2003, Washington Mutual's 75% LTV, 680 mid score, PROVEN liquid assets matching 6 months of the stated income was a generous program. Stupid lending got us into this mess, All we are doing here is returining to sanity. It's going to be a painful ride for those sitting on the bubble as they fall to earth.

By: Tobby

Tobby — Fri, 09 May 2008 23:48:10 +0000

Nothing wrong with old school stated-stated. It's the LTV stupid!

By: J

Fri, 09 May 2008 22:18:12 +0000

Stated loans are were you look for them. [Self Employed White Collar], They Own the company no matter what it is, they dont work in their company they are not part of the staff/ hired help, they live in prominent neighborhoods, they have educations of bachelors or Masters Degrees, Their companies operate out of offices and employee staff, they usually have some business license designation of some sort. Their personal finances and business finances exist seperately. “THIS IS STATED SELF EMPLOYED” Not small business! Not Mom & Pop. Not back seat operate out the back of the trunk business. You either make money or have others make it for you with out lifting a fingure it's that simple.

Stated wager earners and weekend thousandires don't count. I even have a problem with commission driven sales jobs, that is also not consistent and usually cyclical. Stated is a very very small elite group of borrowers who have available assets to use if nessesary.

By: morganb

morganb — Fri, 09 May 2008 22:06:03 +0000

i agree – it seems like they're giving away their company for a few billion
here and there every week…

By: Chuck

Chuck — Fri, 09 May 2008 21:53:40 +0000

Citibank is pretty much insolvent the last thing they need to do is fund RMBS as evident by the new released guideline wholesale changes, they are cash strapped but still want to act like the lions in the business….get real,,,

By: Unknown

Unknown — Fri, 09 May 2008 21:26:37 +0000

I work at Citi and concur we do not want the stated loans. It is dumb founding to me to even offer a product that can not be ahieved. However I must add that the quality of loan coming in the door is very poor at best. They are treating agency loans (DU) with documentation relief as stated too. They have lost their minds.

I need a new job, please help!!!!!!!!!!!!!!

By: morganb

morganb — Fri, 09 May 2008 19:40:02 +0000

sisa to 70% – i don't know too many folks who are stated at 50% ltv – but if
you could find them!!