How come the money is going to the mortage brokers?

[techs]

I just had a thought. Why give the money to the mortgage companies? Wouldn't it be better to give it to the homeowners to pay their mortgages?
I thought the Bushies said the Americans are better at deciding where to spend their money than the Government?

 

[IceBergSLiM]

My mom is a mortgage broker. mortgage brokers don't actually underwrite the mortgages. They are not getting money. Banks that underwrite the mortgages are getting bailed out.

 

[OCGuy]

Originally posted by: techs
I just had a thought. Why give the money to the mortgage companies? Wouldn't it be better to give it to the homeowners to pay their mortgages?
I thought the Bushies said the Americans are better at deciding where to spend their money than the Government?

/facepalm

 

[techs]

Originally posted by: IcebergSlim
My mom is a mortgage broker. mortgage brokers don't actually underwrite the mortgages. They are not getting money. Banks that underwrite the mortgages are getting bailed out.

OK, so why is the money going to the banks and not the individuals and families that need it to pay their mortgages? It seems to me, that people still lose their homes if they default, the bank just gets money to make up their losses.
Would't giving homeowners the money allow them to keep their homes and keep the banks from losing the money?

 

[IceBergSLiM]

Originally posted by: techs

Originally posted by: IcebergSlim
My mom is a mortgage broker. mortgage brokers don't actually underwrite the mortgages. They are not getting money. Banks that underwrite the mortgages are getting bailed out.

OK, so why is the money going to the banks and not the individuals and families that need it to pay their mortgages? It seems to me, that people still lose their homes if they default, the bank just gets money to make up their losses.
Would't giving homeowners the money allow them to keep their homes and keep the banks from losing the money?

Well the situation is pretty complicated. My mom told me recently about an elderly women 75+ who came to her for help last week. This women was sold a home last year. She is on a fixed social security income of 800 per month. She was given a ARM that she was never qualified to receive. Now her rate has gone up and her mortgage is 1200 per month. There is literally nothing she can do. My mom told her to go give the keys to the bank.

But this was a case of fraud. The mortgage was written by corrupt attorney not even a certified broker. It was underwritten by indymac though she never qualified. My mom has since reported the lawyer and the bank to the state investigation agency. In her office they have reported over a 12 of these frauds this year.

So in this instance the lawyer probably lied about the old ladies finances to push the mortgage through. Though I'm sure lax lending policies by indy mac contributed. But make no mistake about it there is going to be alot of people put in jail for fraud because of these things.

 

[jman19]

Originally posted by: Ocguy31

Originally posted by: techs
I just had a thought. Why give the money to the mortgage companies? Wouldn't it be better to give it to the homeowners to pay their mortgages?
I thought the Bushies said the Americans are better at deciding where to spend their money than the Government?

/facepalm

Originally posted by: Ocguy31
Responding with an internet meme to discredit someone's post is brilliant! I must learn these tactics......

Glad to see that you take your own advice... :roll:

 

[OCGuy]

Originally posted by: jman19

Originally posted by: Ocguy31

Originally posted by: techs
I just had a thought. Why give the money to the mortgage companies? Wouldn't it be better to give it to the homeowners to pay their mortgages?
I thought the Bushies said the Americans are better at deciding where to spend their money than the Government?

/facepalm

Originally posted by: Ocguy31
Responding with an internet meme to discredit someone's post is brilliant! I must learn these tactics......

Glad to see that you take your own advice... :roll:

Obviously I have learned the ways of P&N, no? I was new, it just took me some time.

If you dont understand why the bolded part is funny, I dont know what to tell you.

 

[Jaskalas]

Originally posted by: techs
I just had a thought. Why give the money to the mortgage companies? Wouldn't it be better to give it to the homeowners to pay their mortgages?
I thought the Bushies said the Americans are better at deciding where to spend their money than the Government?

Conservatives did their best to kill the bailout, where the hell were you?

 

[Mursilis]

Originally posted by: IcebergSlim

Originally posted by: techs

Originally posted by: IcebergSlim
My mom is a mortgage broker. mortgage brokers don't actually underwrite the mortgages. They are not getting money. Banks that underwrite the mortgages are getting bailed out.

OK, so why is the money going to the banks and not the individuals and families that need it to pay their mortgages? It seems to me, that people still lose their homes if they default, the bank just gets money to make up their losses.
Would't giving homeowners the money allow them to keep their homes and keep the banks from losing the money?

Well the situation is pretty complicated. My mom told me recently about an elderly women 75+ who came to her for help last week. This women was sold a home last year. She is on a fixed social security income of 800 per month. She was given a ARM that she was never qualified to receive. Now her rate has gone up and her mortgage is 1200 per month. There is literally nothing she can do. My mom told her to go give the keys to the bank.

But this was a case of fraud. The mortgage was written by corrupt attorney not even a certified broker. It was underwritten by indymac though she never qualified. My mom has since reported the lawyer and the bank to the state investigation agency. In her office they have reported over a 12 of these frauds this year.

So in this instance the lawyer probably lied about the old ladies finances to push the mortgage through. Though I'm sure lax lending policies by indy mac contributed. But make no mistake about it there is going to be alot of people put in jail for fraud because of these things.

And the elderly lady didn't know what she was signing?

 

[IceBergSLiM]

Originally posted by: Mursilis

Originally posted by: IcebergSlim

Originally posted by: techs

Originally posted by: IcebergSlim
My mom is a mortgage broker. mortgage brokers don't actually underwrite the mortgages. They are not getting money. Banks that underwrite the mortgages are getting bailed out.

OK, so why is the money going to the banks and not the individuals and families that need it to pay their mortgages? It seems to me, that people still lose their homes if they default, the bank just gets money to make up their losses.
Would't giving homeowners the money allow them to keep their homes and keep the banks from losing the money?

Well the situation is pretty complicated. My mom told me recently about an elderly women 75+ who came to her for help last week. This women was sold a home last year. She is on a fixed social security income of 800 per month. She was given a ARM that she was never qualified to receive. Now her rate has gone up and her mortgage is 1200 per month. There is literally nothing she can do. My mom told her to go give the keys to the bank.

But this was a case of fraud. The mortgage was written by corrupt attorney not even a certified broker. It was underwritten by indymac though she never qualified. My mom has since reported the lawyer and the bank to the state investigation agency. In her office they have reported over a 12 of these frauds this year.

So in this instance the lawyer probably lied about the old ladies finances to push the mortgage through. Though I'm sure lax lending policies by indy mac contributed. But make no mistake about it there is going to be alot of people put in jail for fraud because of these things.

And the elderly lady didn't know what she was signing?

She understood a slick talking lawyer saying he can get her into the house of her dreams. Thats what she understood.

 

[Mursilis]

Originally posted by: IcebergSlim

Originally posted by: Mursilis

Originally posted by: IcebergSlim

Originally posted by: techs

Originally posted by: IcebergSlim
My mom is a mortgage broker. mortgage brokers don't actually underwrite the mortgages. They are not getting money. Banks that underwrite the mortgages are getting bailed out.

OK, so why is the money going to the banks and not the individuals and families that need it to pay their mortgages? It seems to me, that people still lose their homes if they default, the bank just gets money to make up their losses.
Would't giving homeowners the money allow them to keep their homes and keep the banks from losing the money?

Well the situation is pretty complicated. My mom told me recently about an elderly women 75+ who came to her for help last week. This women was sold a home last year. She is on a fixed social security income of 800 per month. She was given a ARM that she was never qualified to receive. Now her rate has gone up and her mortgage is 1200 per month. There is literally nothing she can do. My mom told her to go give the keys to the bank.

But this was a case of fraud. The mortgage was written by corrupt attorney not even a certified broker. It was underwritten by indymac though she never qualified. My mom has since reported the lawyer and the bank to the state investigation agency. In her office they have reported over a 12 of these frauds this year.

So in this instance the lawyer probably lied about the old ladies finances to push the mortgage through. Though I'm sure lax lending policies by indy mac contributed. But make no mistake about it there is going to be alot of people put in jail for fraud because of these things.

And the elderly lady didn't know what she was signing?

She understood a slick talking lawyer saying he can get her into the house of her dreams. Thats what she understood.

That's just more proof of the old saying that things which look too good to be true usually are.

 

[351Cleveland]

Whatever happened to,"I it looks too good to be true, it probably is!" Why dont people look for the "gotcha" on deals anymore? Nothing is free. I think if more people understood that simple economic principle, we wouldnt be in this freaking mess.

EDIT: No, I wouldnt give it to home-owners. They got themselves into this mess. They can get themselves out. To the extent that predatory and fradulent means were used to coerce loans, then those people need relief. I dont pay off their debts though. I will help them find a restructure that works for them... but if that isnt possible, then sorry... you should have been smarter about your money.

I dont like the idea of bailing out the financial institutions either, but I dont want another Great Depression either. I dont know that we can avoid it at this point though.

As they say, it takes two to tango. Personal responsibility is essential in society. At the end of the day, nobody had a gun to anyone's head, they werent holding anyone for ransom. People wanted something for nothing, and when they were told it was possible, they bit on it. Shame on them. I shouldnt have to pay for their stupidity.

 

[jman19]

Originally posted by: Ocguy31

Originally posted by: jman19

Originally posted by: Ocguy31

Originally posted by: techs
I just had a thought. Why give the money to the mortgage companies? Wouldn't it be better to give it to the homeowners to pay their mortgages?
I thought the Bushies said the Americans are better at deciding where to spend their money than the Government?

/facepalm

Originally posted by: Ocguy31
Responding with an internet meme to discredit someone's post is brilliant! I must learn these tactics......

Glad to see that you take your own advice... :roll:

Obviously I have learned the ways of P&N, no? I was new, it just took me some time.

If you dont understand why the bolded part is funny, I dont know what to tell you.

I do know why it is funny. What does that have to do with my post?

 

[Fern]

Originally posted by: techs
-snip-
OK, so why is the money going to the banks and not the individuals and families that need it to pay their mortgages? It seems to me, that people still lose their homes if they default, the bank just gets money to make up their losses.
Would't giving homeowners the money allow them to keep their homes and keep the banks from losing the money?

IMO, it would behoove you to research such topics so you have at least a modicum of understanding before creating such posts.

The bailout plan is not designed to be a "give-away" to financial institutions. It's designed to create a market for MBS (mortgage backed securities, aka CDO or SIVs); currently there is no market for buying/selling and those assets are all but illiquid. The Treasury will be buying and selling these things to get the market going again.

(And no, it has doesn't involve mortgage brokers at all).

I'm pretty sure the bill does contain provisions to help individual people avoid default on their home mortgage. Their principal and other aspects of their mortgage can be adjusted to avoid default.

Alao, I'm pretty sure the bill does contain a provision (1st time home buyer tax credit of $5,000 IIRC) to give homebuyers money, but it is a loan and must be paid back.

Fern