Ruh-roh: "Countrywide's Risky Mortagages May Be Ballooning Out Of Control"

Seriously, when are we going to hear more in the MSM about liar's loans and option ARMs?

Because it's just so damn obvious what's coming next...

Maybe someone will ask Angelo today about these neutron bombs when he's under oath. Or maybe not. I'm not sure we can handle the truth..

Countrywide's Risky Mortagages May Be Ballooning Out Of Control

As of the end of December, Countrywide had nearly $29 billion in pay-option loans, with about $26 billion of the total having grown beyond their original loan amount, the company said in a filing late Friday with the Securities and Exchange Commission.

"Our borrowers' ability to defer portions of the interest accruing on their loans may expose us to increased credit risk," the company said. It added that its risk could be greater because the amount of deferred interest on pay-option loans was on the upswing.

The Associated Press says that the number of homeowners missing their interest-only payments is still increasing, and a staggering 81% of borrowers with these risky loans provided little or no documentation of their income.

As of the end of December, 71 percent of borrowers with pay-option loans were electing to make less than full interest payments.

Death of a Salesman 2007: The Mortgage Broker Profession Goes Away

Not a moment too soon.

Good riddance mortgage brokers. You f*cked America for a commission (like your realtor buddies). Yes, there are some decent and honest ones amongst you. But for the other 90%+, one simple piece of advice:

Hire a good lawyer.

Good luck in your new jobs as debt collectors, call center jockeys and crack dealers. You will not be missed.

It saddens me that now a mortgage professional (Broker or Banker) has about the same credibility as a used car salesman

I guess as an industry we’ve earned that reputation. We sold too many of the wrong types of loans to the wrong types of people. There were too many crooks out looking out for their own paychecks, and not their customers best interests.

Its really a shame because mortgage transactions are usually the biggest financial transaction the average American makes. Mistakes in this industry can really damage peoples lives.