We are in a Bigger Mess Than You Know...
If you are following the news about the housing crisis, you might be wondering if we are close to rock bottom.. NOT EVEN
Colleagues in the Mortgage Industry are biting the dust at an even quicker rate than a few months ago, friends that once held very responsible positions, in very large institutions.. I get calls from those friends asking what I am doing, and if I can point them in another direction, or possibly write them a recommendation. Sometimes I do... Sometimes I do not.
You see, I am of the opinion the blame for this mess can be placed in one place and one place only. The Lenders, and Brokers that stooped to make FRAUD the way they do business. It was incredible and sad all at once. I gave a speech in Reno, Nevada about a year ago basically letting my friends and co-workers know they had crapped on their dinner plates. This wholesale attitude of the any loan was do-able, and volume is king crowd has put our citizens lives in danger. I will report i was fired from my position (very) shortly after.
We have crippled an industry that was thriving, and bearing delicious fruit for years. We laid waste to the American Dream for thousands of families across the nation, and ruined the credit prospects of two generations. It will take YEARS to dig out of this mess, and we are not even close to the bottom yet. A full 60% of these loans have not yet Re-cast, leaving a very loud "tick tock" sound in the homes of millions more of our neighbors.
This was not the loan program, but the misuse of it. Many people will now be afraid of taking the advantages a Option ARM loan provides, for fear it will blow up in their faces. When in reality it was, and is a very powerful tool when used correctly, and with the right customer.
A 30 year fixed mortgage is a bad loan for some consumers. Period.. Some people are never going to be served by that type of financing, and are hurt financially everyday by it. Others will be afraid of using the equity in their homes to educate themselves or their children, and that is sad.
I am even more upset that the blame is being spread to the consumers we DUPED into lieing on their 1003 applications, and are now foreclosing on their homes, the same homes by the way, we told them they could afford. They trusted us, and we failed them miserably.
For those that argue, and say I am absolving the consumers unfairly, I say this. Let's say you are a doctor, and your patient has a potentially fatal illness. He trusts you to give him all of the information to make him well. That trust means the difference between life and death for him, and he wants to live. If you give him the wrong course of treatment, it's game over..
Now, you are a Mortgage Broker, and the customer is not ill, but wants to own a home very badly. He trusts you to do your job. His family depends on getting good advice from you to make their dream of home ownership happen. It is a very powerful emotion, one that is so easy to take advantage of as we can see.
Place the blame where it belongs, squarely at the feet of the rotting carcases of these lenders and brokers. Save your sympathy for the millions of newly minted homeless people, not the CEOs who profited GREATLY..
Ok, drop me a line and tell me what you think. Also.... Check me out on YOUTUBE I will be discussing this and other credit topics in HD video. Look for "Channel Give me great Credit"
God Bless You All,
Wayne Altman
www.givemegreatcredit.com
Colleagues in the Mortgage Industry are biting the dust at an even quicker rate than a few months ago, friends that once held very responsible positions, in very large institutions.. I get calls from those friends asking what I am doing, and if I can point them in another direction, or possibly write them a recommendation. Sometimes I do... Sometimes I do not.
You see, I am of the opinion the blame for this mess can be placed in one place and one place only. The Lenders, and Brokers that stooped to make FRAUD the way they do business. It was incredible and sad all at once. I gave a speech in Reno, Nevada about a year ago basically letting my friends and co-workers know they had crapped on their dinner plates. This wholesale attitude of the any loan was do-able, and volume is king crowd has put our citizens lives in danger. I will report i was fired from my position (very) shortly after.
We have crippled an industry that was thriving, and bearing delicious fruit for years. We laid waste to the American Dream for thousands of families across the nation, and ruined the credit prospects of two generations. It will take YEARS to dig out of this mess, and we are not even close to the bottom yet. A full 60% of these loans have not yet Re-cast, leaving a very loud "tick tock" sound in the homes of millions more of our neighbors.
This was not the loan program, but the misuse of it. Many people will now be afraid of taking the advantages a Option ARM loan provides, for fear it will blow up in their faces. When in reality it was, and is a very powerful tool when used correctly, and with the right customer.
A 30 year fixed mortgage is a bad loan for some consumers. Period.. Some people are never going to be served by that type of financing, and are hurt financially everyday by it. Others will be afraid of using the equity in their homes to educate themselves or their children, and that is sad.
I am even more upset that the blame is being spread to the consumers we DUPED into lieing on their 1003 applications, and are now foreclosing on their homes, the same homes by the way, we told them they could afford. They trusted us, and we failed them miserably.
For those that argue, and say I am absolving the consumers unfairly, I say this. Let's say you are a doctor, and your patient has a potentially fatal illness. He trusts you to give him all of the information to make him well. That trust means the difference between life and death for him, and he wants to live. If you give him the wrong course of treatment, it's game over..
Now, you are a Mortgage Broker, and the customer is not ill, but wants to own a home very badly. He trusts you to do your job. His family depends on getting good advice from you to make their dream of home ownership happen. It is a very powerful emotion, one that is so easy to take advantage of as we can see.
Place the blame where it belongs, squarely at the feet of the rotting carcases of these lenders and brokers. Save your sympathy for the millions of newly minted homeless people, not the CEOs who profited GREATLY..
Ok, drop me a line and tell me what you think. Also.... Check me out on YOUTUBE I will be discussing this and other credit topics in HD video. Look for "Channel Give me great Credit"
God Bless You All,
Wayne Altman
www.givemegreatcredit.com
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