Capital New York

fsullivan commented on Bloomberg: 'Plain and simple,' Congress caused the mortgage crisis, not the banks

What everyone is doing on this post ONCE AGAIN is finger pointing. So, since that is the point of the article comments, you are ALL right. Bill Clinton signing de-regulation, Congress pressuring banks to lend. Shady mortgage brokers and large banks using white out ( I was a mortgage broker, had friends in all places including underwriting, secondary market, marketing and pricing, and investors. 73% of my book in 10 years were 30 Year Fixed. I did 7 Pay Option Arms, one on my own house which has a rate of 4.94% on an investment property with cash out. I still have 100k equity in it. I begged people not to do the "1% 30 Year Fixed" they were being telemarketed by people who could barely speak English or proper mortgage knowledge). Obviously there was no such thing but the LO's were Economically benefited from 3 on the back jacking up the margins. Which Leads me to my next person at fault, the guy down the street who took 100k cash out on an inflated appraisal and bought his dune buggy, and camper with towing kit. And a new car. He did not read, care or look at his HUD with 27k closing fees on it because he wanted to toys so bad. He was taken to 95% LTV. I tried to sell him a 30 year Fixed, no higher than 85%, and he went with "the guy who could get it done". He fell behind on his payments, and foreclosed. Idiot. Now he is crying broke. You deserve it. Then the guys on the back end who sold his loan in a nice A- package with some other decent loans and a couple golden Vanilla loans. Now as far as Bush, was he going to stop an Economy and Industry that was booming with people happy and making more money and Spending their asses off. Hell no and No President would including Obumer because he has no idea how a mortgage worked. When asked what a Debt to Income Ratio was, he said it was peoples balances on their credit cards and other account as compared to their Net Income. What an idiot. So the answer is, ALL of them are to blame. Its called Greed. CEO's compensation is nothing compared to Ameriquest and New Century producing 4 Billion a month in Subprime loans and the Account Execs and their managers making 600k a year answering the phone and giving quotes, sometimes .375% better on the same deal to a different loan officer in my same office because she was screwing him and she gave him some of the 27k commish. GREED people, everyone is to blame. It hit everyone. And the CDO's and CDS's you could write a book on too. Everyone reading articles on the internet, if you were in it you could see it coming from a mile away. Now, fix it. Come up with solutions. Its not how we got here (although its important to know), its how you fix it. Obama wants a new refi plan? How moron. When you never have sat down and gone through a persons file. Education is whats needed. And for those who said Congress did nothing, I have a judge in my neighborhood who over Scotch talked to me about death threats. Enough said. If you are going to comment, know your shizz.

Posted on January 29th, 2012 7:31am