Fannie Ma and Freddie Mac! Really? I hope the Fed comes after you after you’ve followed a directive and the Fed decides they need a fall guy. Time to crawl out from under your fungi crusted rock.
Are you talking to me?
B of A mislabeled and bundled a bunch of crap and sold it for a lot of money. Then they got in financial trouble and began taking it out of their customers’ hides. By customers I don’t mean people who shouldn’t have been able to get a mortgage or afford the mortgage they got, I mean good business and personal clients who had legit loans.
At some point, all of the borrowers who signed their names on applications representing that they would pay back the money lent to them will need to take some kind of responsibility rather than blaming the lender for giving them something they untilimately were not willing or able to pay back. Or we could just continue to let dead-beats blame someone else for giving them money they should not have been given and claim to be umwilling “victims”.
Wouldn’t the problem be mitigated by requiring lenders to hold the notes they sign? I think one of the fundamental problems is the banks’ securitization of large portfolios of loans and then selling them off. If BofA knew they would be the ones eating the losses on any bad loans then they would sure as heck not be in a hurry to give a loan to anyone with a pulse.
Just look at the credit card regulations. These companies SCREAMED about regulations– by gosh they wanted the right to send pre-approved credit card offers to people they were actively suing for unpaid debts. But look what actually happened. It turns out lending money responsibly instead of carte blanche is good for business!
Purchasers of these bundled loans have an expectation that a few will go bad, and they offer a purchase price to reflect this but still make it a good investment. When the loan bundles are not properly labeled or described, the purchaser doesn’t have the educated opportunity to offer a purchase price reflective of the true risk.
Bank of America made billions on the sceam nowing full well once the home owners became 91 days late the banks/investors would be able to cash in on the derivitives/insurance policies over 30 times worth the value of the asset. They all belong in prison…
Good!
Fannie Ma and Freddie Mac! Really? I hope the Fed comes after you after you’ve followed a directive and the Fed decides they need a fall guy. Time to crawl out from under your fungi crusted rock.
Are you talking to me?
B of A mislabeled and bundled a bunch of crap and sold it for a lot of money. Then they got in financial trouble and began taking it out of their customers’ hides. By customers I don’t mean people who shouldn’t have been able to get a mortgage or afford the mortgage they got, I mean good business and personal clients who had legit loans.
At some point, all of the borrowers who signed their names on applications representing that they would pay back the money lent to them will need to take some kind of responsibility rather than blaming the lender for giving them something they untilimately were not willing or able to pay back. Or we could just continue to let dead-beats blame someone else for giving them money they should not have been given and claim to be umwilling “victims”.
Do you even understand what this is about? The banks committed FRAUD by mislabeling or not documenting the loans they were selling.
Wouldn’t the problem be mitigated by requiring lenders to hold the notes they sign? I think one of the fundamental problems is the banks’ securitization of large portfolios of loans and then selling them off. If BofA knew they would be the ones eating the losses on any bad loans then they would sure as heck not be in a hurry to give a loan to anyone with a pulse.
Just look at the credit card regulations. These companies SCREAMED about regulations– by gosh they wanted the right to send pre-approved credit card offers to people they were actively suing for unpaid debts. But look what actually happened. It turns out lending money responsibly instead of carte blanche is good for business!
Purchasers of these bundled loans have an expectation that a few will go bad, and they offer a purchase price to reflect this but still make it a good investment. When the loan bundles are not properly labeled or described, the purchaser doesn’t have the educated opportunity to offer a purchase price reflective of the true risk.
Bank of America made billions on the sceam nowing full well once the home owners became 91 days late the banks/investors would be able to cash in on the derivitives/insurance policies over 30 times worth the value of the asset. They all belong in prison…