As we now have seen, banks bribe the mortgage brokers to steer their target (sucker, mark) into a loan that makes the scummy broker the biggest possible commission while screwing the homedebtor in the biggest way possible.
Kinda like a used car salesman selling undercoating.
The 2008 Housing Bubble Congressional Hearings are going to have a field day with mortgage brokers, who have possibly less morals and are more corrupt than realtors.
"As you all know, first prize is a Cadillac Eldorado. Anybody want to see second prize? Second prize is a set of steak knives. Third prize is you're fired."
December 19, 2006
Mortgage brokers video on how they get paid
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New Business Model:
* Honest Mortgage Brokers
* Honest Realtors
????????
Glengarry Glen Ross is a telling movie.
Did someone from the local Jr. High School do the audio visual work for them?
Jerry Lundygaard - From FARGO, 1996
JERRY : Well, he never done this before, but seein' as it's special
circumstances and all, he says I
can knock one hunnert off that
TruCoat.
CUSTOMER: One hundred! You lied to me, Mr.Lundegaard. You're a bald-faced liar!
Jerry sits staring at his lap.
CUSTOMER:... A fucking liar -
WIFE: Bucky, please!
Jerry mumbles into his lap:
JERRY: One hunnert's the best we can do here.
CUSTOMER: Oh, for Christ's sake, where's my goddamn checkbook. Let's get this over with.
More points for the broker ... easy credit, no income, no assets - fine, low loan to value ratios - not a problem, then trouble for the investors who bought the mortgages:
http://www.boston.com/business/articles/2006/12/13/foreclosure_activity_surges_in_mass/
Some foreclosure indicator in Massachusetts is bad or worse than the record set in 1991. How to buy foreclosed homes?
"hey! Let's make a video with a bright sunny window as our backgound!"
"Won't that totally overexpose the shot and leave us all underexposed?"
"Who cares? Stop being such a fag!"
BREAKING NEWS!
Worst of housing slump is over
By JEANNINE AVERSA, AP Economics Writer
Tue Dec 19, 3:06 PM ET
WASHINGTON - The worst of the housing slump is over, although some pain is likely to linger, an adviser to President Bush suggested Tuesday.
This year's housing slowdown — which came off five straight years of booming activity — was a key force behind the overall economy's loss of momentum in the late summer.
The 2008 Housing Bubble Congressional Hearings are going to have a field day with mortgage brokers, who have possibly less morals and are more corrupt than realtors.
Never happen they'll sit up there play dumb "I was told to do it" and take the 5th.
Unfortunately mortgage brokers have a huge lobby - its called NAMB (national assc of mortgage brokers) and they will never let Congress make drastic changes like taking away rebates.
I'm glad they said that their pilot episode was crap at the end of the video...at least they admitted it. Also glad to see that they dressed up for the occasion.
They seem like they might actually be trying to be honest. They're just dumb punks who think they have found an easy way to make money. They think they're in a good career.
Mortgage lending is another area that requires standardization and transparency so that buyers don't get stuck with something they can't afford. The dramatic increase in the rate of foreclosure speaks to this need.
There is a company called Experion Systems that makes a mortgage selector that allows individuals to learn about mortgages and helps them select the mortgage that's right for them. The mortgage selector is used by just a few credit unions but anyone can go to the credit union sites and use the tool.
Software can help people through the mess of mortgage products available and preserve their money from the clutches of unscrupulous mortgage brokers.
i see zillow automating this in a few years
On average most individuals keep their mortgage 5-7 years. Very few individuals hold a mortgage for the entire term. Sometimes it doesn't make sense to pay points. The borrower may work for a corporation where a relocation is a high probability. For different reasons if a borrower has a high LTV or has MI, it probably doesn't make sense for them to pay points. Prospective borrowers should simply be told what their options are and they should do their own break-even analysis.
These guys came across as amateurs.
And, there is transparacy with mortgage brokers. They are required to disclose the buy price on the Good Faith Estimate and HUD-1 Settlement Statement. A mortgage banker, a lender who closes in their own name, is not required to make such a disclosure.
They would have been more convincing if they'd worn sacks over their heads.
"get paid" is a VERY appropriate term for these bloodsuckers -- "gettin' paid," as in how the crips, the bloods, and other gangstas describe how they get their loot.
YOu know, at first I thought this was an al Queda in Iraq video and some poor infidel was about to lose his head
I am a mortgage broker;
With current point/ rate spreads it USUALLY takes more than 2.5 years but less than 3 years to break even on paying 1 point.
Let me just say that I don't trust lenders. I hate them. I hate anyone who is money grubby and the lending business attracts that type of slimy personality.
Okay, having said that, don't you find it ironic that this blog bashes mortgage brokers yet all these google ads on this site is for mortgage brokers? Is there not a conflict of interest here or a crisis of consciousness?
Yeah that whole financial markets thing is sooooo untrustworthy. Dude, those evil lenders lend to build hospitals, airports and roads. Bill Gates, Michael Dell, Steve Jobs,...ring a bell...all borrowed money to start their companies. George Washington...ring a bell..borrowed money to finance the war of independence.
How do people like you with exist?
"Let me just say that I don't trust lenders. I hate them. I hate anyone who is money grubby and the lending business attracts that type of slimy personality."
okay, I was generalizing. Most any business where there is money involved, attracts slimy people.
Although there are very nice people selling neg am loans to unsuspecting buyers right now.
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