Great post from a blog

[Biggus Piggus]

I stumbled on this.  Interesting:

OK- i work in the business. I used to work at the company whose slogan was "The Power of Yes," (Formerly known as WAMU,) they were the US largest S&L & largest portflio lender, servicing their own loans. During a customer service training one of the main points they got across was "ASSUME THE BORROWER KNOWS NOTHING," pertaining to mortgage transactions. Sounds funny. It's actually true, if your not in the business or affiliated with lending, all you know is buy a house, get a "mortgage," hopefully at a descent rate, with low payment.

Throw some lingo their way, and throw 600 legal size documents in front of them and start explaining that okay "SIGN HERE, THIS IS THE RESPA DISCLOSURE, THESE 25 DOCUMENTS ARE THE TILA DISCLOSURES, HERE IS A GOOD FAITH ESTIMATE, THIS IS YOUR ARM BOOKLET, HERE IS YOUR NEGATIVE AMORTIZATION DISCLOSURE...ETC. WTH who in their right mind is going to know what they are siging.

The bottom line, and primary reason we the people fell into this mess, is because the BANKERS, those clever groups of wall street bankers who create a product that will enable those who cant document their income, or afford to own a home...own a home.

stated income stated assets! Who ever thought of that program was evil, obviously you dont qualify if your applying for a SISA, or a No income no assets, or fast and easy. ANY person who did qualify would prefer to document their income, and get a better rate...

WHY ON EARTH DID THE OFFICE OF THRIFT AND SUPERVISON allow the banks to abandon risk management. if your not verifying an applicants ability to pay for the mortgage; then obviously you dont care if they can pay or not....WHAT THEY DID CARE ABOUT WAS THE 1 BASIS POINT OF THE 30,000,000 MILLION IN PRODUCTION FOR THAT MONTH.

GREED & STUPIDITY. THATS A WICKED COMBO

MORAL OF THIS STORY- ITS NOONE ELSES FAULT BUT THE BANKERS (ALL LEVELS, FROM SALES TO EXECUTIVE,) BANKS ARE SUPPOSED TO LEND ON QUALITY TRANSACTIONS FOR BORROWERS WHO ARE CREDIT WORTHY AND HAVE ABILITY TO REPAY FINANCIAL OBLIGATIONS.

MY OPINION= IF YOU WERE SOLD A BAD LOAN, CALL YOUR LENDER, GIVE THEM THE FOLLOWING OPTION:

aPPROVE A SHORT SALE OR HAVE THEM GIVE THEIR ADDRESS AND FED EX THEM THE KEYS BACK.

[Masshog]

A lot of people are taking his advice.