May 17, 2007

Someone tell me the difference between corrupt mortgage brokers and crack dealers

And then tell me the difference between cash-out refi overspending Desperate Homedebtor junkies and crack cocaine users...


Mortgage brokers cashed in on U.S. housing bounty

LOS ANGELES (Reuters) - Money may not grow on trees but for a while it seemed to grow on houses, and Colleen Moorhead knew exactly where to turn when she needed to harvest some cash.

With a few phone calls, broker Joyce DeAngelo could put Moorhead and her husband into a new mortgage and cut them a check. They used more than $100,000 in cash they netted from the refinancing for living expenses and renovations.

Between 2001 and 2006, the Moorheads refinanced their three-bedroom San Diego home at least nine times, county records show.

But mortgage broker DeAngelo didn't work for free. Each new loan carried up to $13,000 in fees, along with prepayment penalties, and the Moorheads fell deeper in debt.

A marginal presence in the industry 20 years ago, mortgage brokers have become the face of the $10 trillion home-loan industry, the single point of contact between a sophisticated financial world and borrowers committing to spend hundreds of thousands of dollars to buy a home. Brokers often present themselves as disinterested parties, but the industry feeds on fees from lenders and bonuses when they complete a deal.

Moorhead and her husband now owe $603,000, up from $196,000 when they started, and more than $10,000 over what their house is worth, according to one online estimate. They're likely to lose it soon if they can't somehow make payments greater than their monthly income. Their broker, DeAngelo, said she tried to save them from financial disaster, but her client kept wanting to refinance.

"I told her every time that she can't keep doing this, she's going to lose her house," DeAngelo said, adding that she gave Moorhead tips on straightening up her finances that were mostly ignored. "She has no one else to blame."

As the real estate boom of the last half-decade turns to bust, homeowners like Moorhead say they feel betrayed by brokers who profited from bad advice and saddled them with loans they couldn't afford.

"It seemed like she was a gift from God or something," Moorhead said. "But she's a wolf in sheep's clothing."

38 comments:

kangtong said...

Assuming both sides are telling the truth: Why didn't the broker tell the borrower no? Why didn't the borrower pay attention? No victims here, just GREED. Tell your congressmen to stay out of this or we will all be paying for this stupidity.

Hayley said...

Well, there is corruption in the housing market and then there is outside the asylum insanity. If you met these people I'm sure it would be readily apparent that they were more than a few standard deviations from normal. It's that Serin kind of sociopathy, same time, different channel.

Anonymous said...

Wow! You're going to bother going after mortgage brokers when you should be focused on the CDO traders?!? The brokers wouldn't have had the business they did without the malfeasence of the CDO guys.

Anonymous said...

Crack dealers have better morals?

Anonymous said...

Keiffer you're kidding right? Man the rhetoric here is getting so over the top.

Anonymous said...

9 times - thats all - shit I did that in two years!

bickerer said...

>Moorhead and her husband now owe $603,000, up from $196,000 when they started.

They say you can't over feed goldfish cause they'll eat until they rupture something and die. Anyone see similarities to housing atm addicts?

Anonymous said...

Too many posts, Keith. I can vent only so much outrage on any given day.

Anonymous said...

Keith

Ron Paul is a dufus! He basically ended any chance he had during the debate when he blamed America for 9/11. He teed up the ball and then Guliani whacked it outta the park.

Have you become a far left whack job yourself? Hey, you're an expatriot too?

Anonymous said...

With crack, one is left penniless and despondent after experiencing one of the most intense highs of their lives.

With housing, one is just left penniless and despondent.

Pete said...

Keith, when you see homeowners prostituting their 9 yr old dgtrs. to get a "Re-Fi" fix, then you can talk like this. Take it from someone who grew up in NYC during the crack-wars and the Night-of-the-Living Dead zombies that inhabitied many NYC neighborhoods, this comparison is over the top.

Anonymous said...

A good dope pusher never lets his junkies take enough to overdose - it's bad for business.

Anonymous said...

http://www.mlive.com/newsflash/michigan/index.ssf?/base/news-44/117935695635230.xml&storylist=newsmichigan


Michigan GOP wants Paul banned.

what paul said was 1000000% right

Adam Smith said...

The loan officers are so blatant, they even ran TV ads explaining that spending money you don't have is actually NO ONE'S FAULT, and certainly NOT the consumers!

Here's one example:

http://tinyurl.com/259suz

She basically says, "everyone's doing it" (as a reference to consumer debt), so why not you, too?

Anonymous said...

hey keith, are you going to bogart all of that crack? i think the least you could do is to share it with the rest of the loyal hper's around here. i mean, we are in pain......we need help......pass that pipe around son and lets get to it....

Benjamin Franklin said...

Anonymous said:

Wow! You're going to bother going after mortgage brokers when you should be focused on the CDO traders?!? The brokers wouldn't have had the business they did without the malfeasence of the CDO guys.

That's like saying:

Wow! You're going to bother going after the drug dealers, when you should be focused on the drug growers?!? The dealers wouldn't have had the business they did without the malfeasance of the growers.

AS IF we can only focus on ONE player who contributed to the problem that created this mess? When it comes to addressing the problem, OF COURSE we need to focus on the ENTIRE supply chain.

Anonymous said...

Alot of scum migrated into the REIC during the boom years. It's the same with any other bubble. Organized and disorganized criminals and lowlifes are always looking for an angle. I would not consider the debtors to be victims. They were willing participants and most lied on their applications to get the loans. Let them all bake like a smelly turd under the hot Phoenix sun.

Ryan Anderson said...

What ever happen to personal responsibility???

Alot of people thought their house was an atm. So now when the market slows and no more equity to strip, they cry foul? WTF?

Also every MAJOR BANKING INSTITUTION was advertising for home loans, not just brokers. If a broker said no, you could walk into your LOCAL BANK and get the same thing.

Anonymous said...

Crack dealers don't lie about their product

Anonymous said...

Mental note---dont send queef out for crack, he'll come back with a mortgage...

Anonymous said...

I want that mortgage broker arrested now . Wait till the Moorheads start turning on their agent because they now know the nice lender lady was the fraudulent dealer all so willing to doll up the loan application and appraisal to get the snuff(I mean money) to her marks .

This lending outfit took about 150k in fees and pre-pay penalty from these jerks to get them money they didn't deserve based on income .
Take warning lenders ,when borrowers default or lose their shirts or realize that you guys are evil they will turn on you so quick and spill the beans . When people go down they like to take the people that helped them down with them .Some borrowers will have paperwork that will prove the crimes .have a good sleep tonight .

Anonymous said...

Since a few of you are talking about Ron Paul, I have a question for the RP haters.

If his 9/11 comments were so whacko, then what exactly is your rationalization for why we were attacked? Are you saying we HAVEN'T been bombing them for decades? I don't understand why his comment pissed yall off so bad.

In your opinion, WHY WAS OUR COUNTRY ATTACKED?

borkafatty said...

Oh and by the way all those refi's 9 was it?....Its called Financing a Life style that should have never been in the first place.

JAFO said...

9 Re-fi's in 5 years !! Moorehead you and your husband should change your names to Moron. If you required mortgage refinancing 9 times just to support your lifestyle then may I suggest you are/were living way beyond your means. Wise up jackasses. If you can't afford to live in San Diego, get out. Absolutely no shame in living according to your means. Same advice goes to the countless millions of others out there who do this same thing. You better start living a lifestyle that you can afford rather than continue to be posers trying to keep up with the Jones. If that means moving so be it. Believe me, if you start now and establish yourself someplace you can afford you will be much better off. Indeed it may already be too late.

JAFO

Anonymous said...

WHY WAS OUR COUNTRY ATTACKED?

Plain and simple, the dudes weren't getting any.

Frank said...

Sounds like 99% of Scottsdale, Arizona residents.

Never before have I seen so much fake wealth and hot cars and bling that was entirely bought with refi money. And now all those idiots are desperately trying to sell off their BMWs and Rolexes to scrape up cash before they lose the house.

www.scottsdale-sucks.com

Pete said...

>>>If his 9/11 comments were so whacko, then what exactly is your rationalization for why we were attacked? Are you saying we HAVEN'T been bombing them for decades? I don't understand why his comment pissed yall off so bad.

In your opinion, WHY WAS OUR COUNTRY ATTACKED?<<<

Osama himself has said that he is upset at the USA for having troops on Saudi soil during the first Gulf War. Of course other countries had troops there, too, but apparently that's irrelevant. He's also pissed at us for the sanctions against Iraq. Apparently some of the other countries that voted for those sanctions get a pass ie China and Russia. Oh, and Osama has also given us the warning/opportunity to convert to Islam, just like the Koran says he should.

Take a look at what Osama's sympaticos are doing in Darfur, murdering and enslaving African Christians. But like us, they probably have it coming, right? Probably all of those yrs of Africa supporting Israel, right?

honica jewinski said...

Corrupt mortgage brokers are by and large White non-violent criminals.
Crack dealers are by and large murderous black African rapists who commit many, many violent crimes a year.

jt said...

One sells crack, the other one sells whack.

Anonymous said...

I was getting interested in Ron Paul until his 9/11 comments. You can spin what he said all you want, you know what he meant and I'm sorry but I can't support someone who takes the Michael Moore / Rosie O'Donell position on 9/11.

Anonymous said...

In your opinion, WHY WAS OUR COUNTRY ATTACKED?

many reasons really. israel needed us to go into the middle east in order to attack and try to destroy their enemies in the middle east. the attack was carried out by computer controlled specially outfitted airplanes...the planes that took off that day from boston were not the same ones that flew into the wtc...the aspect of the planes flying into the wtc was just a diversion. the real damage to the buildings was done by explosives that were placed in the buildings in order to make the buildings come down with the least amount of damage to other buildings in the area.......if you will remember wtc 7 fell about 5:00 that day...it was not even hit by anything. yet it fell......the builders of the wtc said there was no way a plane could bring those buildings down...they were designed to withstand multiple hits from airplanes........they were built like the old saying goes, like the proverbial brick shithouse........with main support columns that were enormous, not to mention the other support structures built into the buildings.. no airplane flew into the pentagon that day...there were no cell phone calls that day made from any of the airplanes....cell phones do not work on airplanes...

i could go on and on.....but you can chew on this a while and think about it....

so who did it?

i think various people did it...inside our own government and other outside agencies, among them the israeli massad...

being a international location for business and commerce for the world, there were many people from all nationalalities working there. early that morning, the israelis that were working in the buildings were called and told not to come to work.....not one israeli died that day...they were tipped off....

then you have the dancing israelis that were found celebrating in the parking lot of the apartment project across the river in new jersey......some old lady saw them and thought they were arabs and she called the cops....the cops thought they were too and threw them in jail.......when they were arrested, they told the cops that they were israelis and that they were not our probleme whatever that meant.....come to find out over a hundred israeli agents were arrested that day in and around new york.......many of them dressed like arabs. the van the israelis were using in new jersey was checked by bomb sniffing dogs and the dogs alerted on it for explosives......

i think those buildings were wired with explosives during sometime before 911. the planes were flown into the buildings by remote control. the whole thing about hijackers and cell phone calls was made up by someone. the plane crashes into the buildings were designed to be distractions from the explosions going off in the buildings that day...this is why the buildings turned almost to dust that day ...

so now we look at who owned the buildings....well a guy named silverstein bought them a few months before this happened and took out huge insurance coverage on the buildings.....

so this crime was manyfold in nature.......

1.it got us involved in wars for israel and we fight and die for them against their enemies.
2. the zionsist owners swindled the insurance agency out of billions of dollars.
3. the military industrial complex is making money hands over foot because of war.
4. this action does something to the american phsyche like the assassination of JFK did
5. there are probably satanic Kaballahistic influences at work here as well.
6. and number 6 in the reasons why.....ok here goes..are you ready?

for over 2000 years the jews have wanted to be masters of this world. they have worked tirelessy to that end generation after generation. they think that they are the chosen ones of God and that God chose them to be the masters of this world. This is not why they were chosen but they think that anyway. Many who call themselves jews now, are not really jews. They are converts to judaism. well anyway they have worked tirelessy to achieve this great dream. and it is all driven by their father , the angel of light, the one that gives them the power to do what they do , satan himself.......anyway, so now the plan is close, and it is almost together. they are in a hurry for satan knows that his time is almost over. he is telling them to hurry....they have destroyed almost all of the nations of this world, in one way or the other. so now the last stone in their shoe is america......so now they are attempting to destroy white western civilization and if you look around and see what is going on, then you will know that this plan is coming together quite well.

all in all, i am merely touching on a few points as to why this event ocurred.

the main thing to remember is that the arabs did not do this. they did not have the capability of doing it even if they wanted to. this was a carefully planned, incredibly complex event that required the utmost in intelligence information and insider help. the arabs did not have any of this. who is it that is always spying on us? saudi arabia or is it israel? think about it...

hope this helps with your question.

burn baby burn said...

The crack head must pay as they go. That would be the only difference.

Anonymous said...

American troops were put on the Arab peninsula because of the "threat" posed by Saddam Hussein on Saudi Arabia. Everybody knows that was pure bullshit. We still have bases in Germany nearly 20 years after the Cold War ended. We are building more bases in Poland and Central Asia. This power grab is insane and pissing off alot of people. We need to mind our own business and fix our own problems at home.

Anonymous said...

"American troops were put on the Arab peninsula because of the "threat" posed by Saddam Hussein on Saudi Arabia. Everybody knows that was pure bullshit. We still have bases in Germany nearly 20 years after the Cold War ended. We are building more bases in Poland and Central Asia. This power grab is insane and pissing off alot of people. We need to mind our own business and fix our own problems at home."


true........we never leave......we are in over 120 countries now....we will never leave iraq unless we rebell and take the boot off of our neck.....it will not come off with talk and it will not come off by asking nicely....the system has been in business for a very long time and it has corrupted eveything it has touched...

Anonymous said...

Dude who is talking about 911 .

Take a pill , have a good sleep and forget about this story you made up .

RecklessRenter said...

stupid is as stupid does.

This idiot has no one to blame but herself.

What the hell did she think a LOAN was?

Anonymous said...

OK the lender was wrong but aren't the Moorheads at least a little responsible? com-on - all I hear about is how bad lenders are 9i am not a lender) but, what about the idiots that refinanced 9 times? they deserve what ever trouble they got into. A house is not an ATM machine!

Anonymous said...

Man that guy has the whole 911 thing figured out. He must be right. I tested his theory with my remote controlled plane from radio shack, I could fly it into a wall - without anyone steering it from the inside. Proof he is right!
Then I built a replica of the 911 buildings with crazy straws. They bent a little and I used duct tape (which we all know is super strong)to strengthen them. I lit a couple of paper airplanes on fire and flew them into my model - guess what... it did not collapse! The real 911 towers are much bigger so they must have been ok too.
I'm sure that the President planted the explosives himself the night before - afterall, he has the secret service and you know what they are good at? S-E-C-R-E-T-S. Yep, that's the ticket...
Yep, this guy has it all figured out!