Comments on: Dissecting the Countrywide Propaganda Media Machine http://loanworkout.org/2007/10/dissecting-the-countrywide-propaganda-media-machine/ Loan Modification & Home Loan News Sat, 20 Mar 2010 05:26:34 -0700 http://wordpress.org/?v=2.9.2 hourly 1 By: Phil Hawkins http://loanworkout.org/2007/10/dissecting-the-countrywide-propaganda-media-machine/#comment-1169 Phil Hawkins Thu, 08 Nov 2007 22:20:16 +0000 http://loanworkout.org/2007/10/27/dissecting-the-countrywide-propaganda-media-machine/#comment-1169 You guys are living in a dreamworld. People fall into two categories; finicially responsible and not financially responsible. You are not going to change that. Look, it's the banking industry that invented the adjustable mortgage in the mid-eighties in the first place! Now, they want to blame mortgage brokers for all the evil in the world today! What is it that makes you think people need to have their hands held throughout their mortgage term? What a bunch of nonsense. The only thing people want to know is how much is my payment and where do I mail the check...<br /><br />This problem is not the fault of mortgage originators or lenders. It's the fault of greedy and irresponsible people buying homes that should not be. When I was a retail originator, I routinely sent people away who made $2,000 a month with 3 kids and a $700 car payment. They lied about all the under-the-table income they were receiving... they would say and do anything to buy a house. I agree that U/W needs to be tightened, and that has already happened. The main thing that caused this mess is falling home prices... You guys are living in a dreamworld. People fall into two categories; finicially responsible and not financially responsible. You are not going to change that. Look, it’s the banking industry that invented the adjustable mortgage in the mid-eighties in the first place! Now, they want to blame mortgage brokers for all the evil in the world today! What is it that makes you think people need to have their hands held throughout their mortgage term? What a bunch of nonsense. The only thing people want to know is how much is my payment and where do I mail the check…

This problem is not the fault of mortgage originators or lenders. It’s the fault of greedy and irresponsible people buying homes that should not be. When I was a retail originator, I routinely sent people away who made $2,000 a month with 3 kids and a $700 car payment. They lied about all the under-the-table income they were receiving… they would say and do anything to buy a house. I agree that U/W needs to be tightened, and that has already happened. The main thing that caused this mess is falling home prices…

]]> By: Phil Hawkins http://loanworkout.org/2007/10/dissecting-the-countrywide-propaganda-media-machine/#comment-1168 Phil Hawkins Thu, 08 Nov 2007 21:49:26 +0000 http://loanworkout.org/2007/10/27/dissecting-the-countrywide-propaganda-media-machine/#comment-1168 They are going to eliminate rebates? So, the mortgage industry is going to be forced to sell mortgages at wholesale prices? What other industry is going to lie down for that... absurd. They are going to eliminate rebates? So, the mortgage industry is going to be forced to sell mortgages at wholesale prices? What other industry is going to lie down for that… absurd.

]]> By: Freddy http://loanworkout.org/2007/10/dissecting-the-countrywide-propaganda-media-machine/#comment-1167 Freddy Thu, 08 Nov 2007 09:17:30 +0000 http://loanworkout.org/2007/10/27/dissecting-the-countrywide-propaganda-media-machine/#comment-1167 I dont beleive that people in a case, say someone owns a house for 25 years and they lived in it. Now they owe $50000 and its worth $300000 and they loose there job or get laid off, and they need to be able to tap into there equity on there house so they can pay bills and live while they look for or train for a new job.if this law comes to be they would have to sell there house righty away and not have a chance to save it and get back on there feet. How can some one be able to verify weather they have the ability to repay other than the equity, But if the borrowed say $150000 of there equity they could live and try to get a new job and if they cant the can still sell there house I dont beleive that people in a case, say someone owns a house for 25 years and they lived in it. Now they owe $50000 and its worth $300000 and they loose there job or get laid off, and they need to be able to tap into there equity on there house so they can pay bills and live while they look for or train for a new job.if this law comes to be they would have to sell there house righty away and not have a chance to save it and get back on there feet. How can some one be able to verify weather they have the ability to repay other than the equity, But if the borrowed say $150000 of there equity they could live and try to get a new job and if they cant the can still sell there house

]]> By: Freddy http://loanworkout.org/2007/10/dissecting-the-countrywide-propaganda-media-machine/#comment-1166 Freddy Thu, 08 Nov 2007 09:15:05 +0000 http://loanworkout.org/2007/10/27/dissecting-the-countrywide-propaganda-media-machine/#comment-1166 I don't believe that people in a case, say someone owns a house for 25 years and they lived in it. Now they owe $50000 and its worth $300000 and they loose there job or get laid off, and they need to be able to tap into there equity on there house so they can pay bills and live while they look for or train for a new job.if this law comes to be they would have to sell there house righty away and not have a chance to save it and get back on there feet. How can some one be able to verify weather they have the ability to repay other than the equity, But if the borrowed say $150000 of there equity they could live and try to get a new job and if they cant the can still sell there house I don’t believe that people in a case, say someone owns a house for 25 years and they lived in it. Now they owe $50000 and its worth $300000 and they loose there job or get laid off, and they need to be able to tap into there equity on there house so they can pay bills and live while they look for or train for a new job.if this law comes to be they would have to sell there house righty away and not have a chance to save it and get back on there feet. How can some one be able to verify weather they have the ability to repay other than the equity, But if the borrowed say $150000 of there equity they could live and try to get a new job and if they cant the can still sell there house

]]> By: Freddy http://loanworkout.org/2007/10/dissecting-the-countrywide-propaganda-media-machine/#comment-1165 Freddy Thu, 08 Nov 2007 09:11:47 +0000 http://loanworkout.org/2007/10/27/dissecting-the-countrywide-propaganda-media-machine/#comment-1165 I dont beleive that people in a case, say someone owns a house for 25 years and they lived in it. Now they owe $50000 and its worth $300000 and they loose there job or get laid off, and they need to be able to tap into there equity on there house so they can pay bills and live while they look for or train for a new job.if this law comes to be they would have to sell there house righty away and not have a chance to save it and get back on there feet. How can some one be able to verify weather they have the ability to repay other than the equity, But if the borrowed say $150000 of there equity they could live and try to get a new job and if they cant then can still sell there house I dont beleive that people in a case, say someone owns a house for 25 years and they lived in it. Now they owe $50000 and its worth $300000 and they loose there job or get laid off, and they need to be able to tap into there equity on there house so they can pay bills and live while they look for or train for a new job.if this law comes to be they would have to sell there house righty away and not have a chance to save it and get back on there feet. How can some one be able to verify weather they have the ability to repay other than the equity, But if the borrowed say $150000 of there equity they could live and try to get a new job and if they cant then can still sell there house

]]> By: Moe http://loanworkout.org/2007/10/dissecting-the-countrywide-propaganda-media-machine/#comment-1164 Moe Wed, 07 Nov 2007 08:54:56 +0000 http://loanworkout.org/2007/10/27/dissecting-the-countrywide-propaganda-media-machine/#comment-1164 Geez, I think the President just came by my blog. Oh so honored to have the President of Boy Scouts Chapter 7's command leader come in and give us his 2 cents. Hey, I want my 2 cents back because I feel burned. He says:<BR><BR><STRONG><FONT size=4><FONT size=2>"The market can and will fix itself and is alraedy doing so."</FONT><BR><BR>YOU MUST BE JOKING AND WHAT BUBBLE HAVE YOU BEEN LIVING IN? Oh wait it's BUBBLE BOY who just came out of the bubble to comment on my blog.</FONT></STRONG> Geez, I think the President just came by my blog. Oh so honored to have the President of Boy Scouts Chapter 7’s command leader come in and give us his 2 cents. Hey, I want my 2 cents back because I feel burned. He says:

“The market can and will fix itself and is alraedy doing so.”

YOU MUST BE JOKING AND WHAT BUBBLE HAVE YOU BEEN LIVING IN? Oh wait it’s BUBBLE BOY who just came out of the bubble to comment on my blog.

]]> By: Moe http://loanworkout.org/2007/10/dissecting-the-countrywide-propaganda-media-machine/#comment-1163 Moe Wed, 07 Nov 2007 08:51:07 +0000 http://loanworkout.org/2007/10/27/dissecting-the-countrywide-propaganda-media-machine/#comment-1163 Maybe we will all will be required to wear helmets because the sky is falling or the economy. I dunno. The Dr. and my mom made me wear a helmet when I was 9 for like 4 months because I kept cracking my noggin open and getting stiches. If I think back, it wasn't the helmet that saved me from doing it again. It was the behavior I changed so I didn't have to wear that damn helmet anymore. You know, stuff like jumping trash cans with no hands and stuff. So, maybe you can apply the helmet theory here...hmmmmmmmmm.............maybe like a shock devise that shocks people every time they pull out their credit cards. Maybe we will all will be required to wear helmets because the sky is falling or the economy. I dunno. The Dr. and my mom made me wear a helmet when I was 9 for like 4 months because I kept cracking my noggin open and getting stiches. If I think back, it wasn’t the helmet that saved me from doing it again. It was the behavior I changed so I didn’t have to wear that damn helmet anymore. You know, stuff like jumping trash cans with no hands and stuff. So, maybe you can apply the helmet theory here…hmmmmmmmmm………….maybe like a shock devise that shocks people every time they pull out their credit cards.

]]> By: Richard Kalliday http://loanworkout.org/2007/10/dissecting-the-countrywide-propaganda-media-machine/#comment-1162 Richard Kalliday Tue, 06 Nov 2007 20:38:52 +0000 http://loanworkout.org/2007/10/27/dissecting-the-countrywide-propaganda-media-machine/#comment-1162 Never before have so many said so much about which they knew so little. <br /><br />Why not just have the government issue tests to all citizens and then they can decide who can borrow money and who cannot?<br /><br />The market can and will fix itself and is alraedy doing so. When the smoke clears, underwriting standards will be more prudent and most of the quick money amateurs who have come into the industry in recent years will be gone. Proposals like Mr. Frank's will do far more harm than good in terms of homeownership and credit availability. Be very careful. Never before have so many said so much about which they knew so little.

Why not just have the government issue tests to all citizens and then they can decide who can borrow money and who cannot?

The market can and will fix itself and is alraedy doing so. When the smoke clears, underwriting standards will be more prudent and most of the quick money amateurs who have come into the industry in recent years will be gone. Proposals like Mr. Frank’s will do far more harm than good in terms of homeownership and credit availability. Be very careful.

]]> By: Prof. Samuel D. Bormstein http://loanworkout.org/2007/10/dissecting-the-countrywide-propaganda-media-machine/#comment-1161 Prof. Samuel D. Bormstein Tue, 06 Nov 2007 19:27:45 +0000 http://loanworkout.org/2007/10/27/dissecting-the-countrywide-propaganda-media-machine/#comment-1161 To Harry...One more thing.. If the legislation passes which requires that the lender determine that the borrower have the ability to repay the mortgage at inception and in the future, the lender requires due diligence documentation to "hang his hat on" in order to repell lawsuits if the borrower fails. My web-based program can be that documentation because it determines not only whether the borrower can handle the mortgage at inception, but it also allows a "monitoring" of the borrower's financial condition when changes occur. How can the lender predict such changes as lower income, higher family spending, etc?. The Personal Financial Blood Test allows the borrower to "monitor" his/her financial condition and be warned if he/she is slipping down the wrong path, in time for correction. This monitoring tool is the most effective way to identify problems before they result in financial distress. Therefore, the program can be effective both for the borrower and the lender. To Harry…One more thing.. If the legislation passes which requires that the lender determine that the borrower have the ability to repay the mortgage at inception and in the future, the lender requires due diligence documentation to “hang his hat on” in order to repell lawsuits if the borrower fails. My web-based program can be that documentation because it determines not only whether the borrower can handle the mortgage at inception, but it also allows a “monitoring” of the borrower’s financial condition when changes occur. How can the lender predict such changes as lower income, higher family spending, etc?. The Personal Financial Blood Test allows the borrower to “monitor” his/her financial condition and be warned if he/she is slipping down the wrong path, in time for correction. This monitoring tool is the most effective way to identify problems before they result in financial distress. Therefore, the program can be effective both for the borrower and the lender.

]]> By: Prof. Samuel D. Bornstein http://loanworkout.org/2007/10/dissecting-the-countrywide-propaganda-media-machine/#comment-1160 Prof. Samuel D. Bornstein Tue, 06 Nov 2007 19:03:05 +0000 http://loanworkout.org/2007/10/27/dissecting-the-countrywide-propaganda-media-machine/#comment-1160 To Harry C..I thank you for your supporting comment. I am saying that now is the time when we say to this borrower.."Let's make a deal, we will help you by loan modification, but you (the borrower) will commit to do your part by controlling your spending with guidance". We now have a unique opportunity to gently guide this financially illiterate borrower. That is the least that we can ask of him/her, especially since we are giving them a "gift" by lowering their mortgage payment. What is wrong with helping consumers be more responsible?.<br />What are we waiting for? It seems that we are just sitting-by helplessly and awaiting the expected defaults and blaming everyone for this tragedy that is unfolding and may take our economy with it. I presented a solution to this crisis, at the Third Annual Subprime ABS conference on Sep. 19-20, 2007 in Las Vegas. My solution involves helping the borrower understand how it is possible to avoid default. There are millions at risk. Let's not think that the counseling agencies will be able to get to a significant portion of these borrowers who need help. Anyway, even if you modify some of these borrower's mortgages, don't you think it wise to guide them not to make the spending and debt mistakes that got them into this mess in the first place? Here is a link to my Powerpoint that I presented to the securitization conference in Sept., 2007. It offers a solution that should be implemented. What do you think? <br /><br /><br /><a href="http://www.imn.org/esb967/presentations/Sam_Bornstein_D2_430.ppt" rel="nofollow">http://www.imn.org/esb967/presentations/Sam_Bornstein_D2_430.ppt</a> To Harry C..I thank you for your supporting comment. I am saying that now is the time when we say to this borrower..”Let’s make a deal, we will help you by loan modification, but you (the borrower) will commit to do your part by controlling your spending with guidance”. We now have a unique opportunity to gently guide this financially illiterate borrower. That is the least that we can ask of him/her, especially since we are giving them a “gift” by lowering their mortgage payment. What is wrong with helping consumers be more responsible?.
What are we waiting for? It seems that we are just sitting-by helplessly and awaiting the expected defaults and blaming everyone for this tragedy that is unfolding and may take our economy with it. I presented a solution to this crisis, at the Third Annual Subprime ABS conference on Sep. 19-20, 2007 in Las Vegas. My solution involves helping the borrower understand how it is possible to avoid default. There are millions at risk. Let’s not think that the counseling agencies will be able to get to a significant portion of these borrowers who need help. Anyway, even if you modify some of these borrower’s mortgages, don’t you think it wise to guide them not to make the spending and debt mistakes that got them into this mess in the first place? Here is a link to my Powerpoint that I presented to the securitization conference in Sept., 2007. It offers a solution that should be implemented. What do you think?

http://www.imn.org/esb967/presentations/Sam_Bornstein_D2_430.ppt

]]>