Study: Subprime Mortgage Lawsuits Outpacing Savings & Loan Crisis

February 15, 2008

  • February 15, 2008 at 10:56 am
    josh says:
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    study found that virtually every participant in the subprime collapse is being sued. Fortune 1000 companies were named in 56 percent of cases. Mortgage bankers and loan correspondents represent the highest percentage of defendants (32 percent) but defendants also include mortgage brokers, lenders, appraisers, title companies, homebuilders, servicers, issuers, underwriting firms, bond insurers

  • February 15, 2008 at 1:06 am
    Not surprised says:
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    Remember the S&L bail outs? The banks promised to behave themselves after that. Now they’ve gone and DONE IT TO THEMSELVES again. Maybe this time we should toss ‘em in jail & throw away the key. Of course that won’t happen. WE will end up paying for their bad judgment! The rich just keep getting richer…..

  • February 15, 2008 at 1:07 am
    Compman says:
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    Don’t you just love it. People who were either stupid or greedy or both now want someone to pay for their own personal failures. Just because a lawsuit is filed, doesn’t make it win for the plaintiff. I think that once a few of these get tried and find for the defendant, we will see some of these go away and the law firms will not be willing to put their money behind these if they don’t have a chance to win.

  • February 15, 2008 at 1:25 am
    JB says:
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    I agree with you Compman, but when you pit stupidity against greed, who wins? The plaintifff’s were ignorant and take no personal responsibility for making blatantly poor decisions. The defendants were deceptive and borderline criminal in their lending practices. The big losers are going to be those of us who have a house we can afford and pay our mortgage, on time, every month. I wonder if the money from the economic stimulous package will be used to pay off some of that mortgage debt…..

  • February 15, 2008 at 1:37 am
    Compman says:
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    I agree JB, but you and I will be the big losers in this mess. I know when I refinanced back in 04, they begged me to take out extra money since I had equity built up. I declined and just refi’d what my existing balance was. 5.25% 30 yr fixed. I also have a rental property in Colorado worth about 175k, but on my loan application, they listed it at 375K for a value. I asked them where they came up with that number and they said thru comparative sales. I told them if they truly felt my house was worth 375k, I would be more than happy to sell it to them for that amount. I told them to change it to 175k as I would not sign the papers if they did not change it. It did not affect my getting the loan either.

  • February 15, 2008 at 2:03 am
    Heck yeah says:
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    Good comments Compman & JB. You are right on target! I remember a Judge Judy comment: Beauty fades, but stupid is forever! Seems they don’t learn…or is it we just have seen too much of this stuff & know better?

  • February 15, 2008 at 2:25 am
    JB says:
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    Here’s another pearl of wisdom: If it weren’t for stupidity, I wouldn’t have a job. I should have that tattooed on my….

  • February 17, 2008 at 10:10 am
    Kenneth says:
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    I would be interested in seeing the study authored by navigant. it’s just a big mess. anyone has read the study?



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