His blog is the gift that keeps on giving and a great read. Casey, if you're reading this, keep on blogging. Your mindframe as you secured your $2.2 Million in liars loans, and how you got to the point you're at today, is continually fascinating, and is the perfect color commentary to fill in the housing bubble story.
Here's the latest. He also talks about HP'ers being hard on him in the full post
How "Illegal" is it REALLY?
When I mentioned the way I did my loans, I didn't think much of it. I was just being open and honest and shared everything I did - hoping it will help somebody. Yes, on these loans I was technically misrepresenting things like income, cash at closing and owner-occupied issue.
But if you know anything about the state of today's lending industry you will agree that what I did is nothing out of the ordinary.
For more information, see this News Article on Liar Loans or just watch the Liar Loan video. (Now compare to this Wall Street Journal article on the Real Mortgage Fraud). While personally I have always had MORAL issues with these loans, the reality is that Liar Loans are pretty normal.
* Everybody is doing it - just ask your mortgage broker!
* Lenders/banks allow it and turn a 'blind eye' to it.
* The account executives at the banks actually tell the mortgage brokers how to 'sugar coat' the application.
* Lenders make a killing on EXTRA INTEREST and fees for stated income loans - you pay to lie.
Lenders package their loans and sell to mutual funds on wall street. The extra default rate on LIAR LOANS has been pre-calculated. The extra risk is accounted-for in most cases.
For those who are still judging me, I will just say this:
How many of YOU have 'stolen' a music CD or software program by burning a copy of it? Did you NOT know that it's ILLEGAL?
September 29, 2006
Posted by blogger at 9/29/2006