I remember buying this house. We HAD to MEET the bank before the loan was approved. They wanted to know us before giving us the 100,000.00 we needed. No big deal. We met with them after hours, talked about what we were doing for a living, what schools we went to etc. etc. Hands shook, loan approved.
A few years later, the bank officers were removed because they were NOT FOLLOWING proper lending practices. They were not allowed to meet folks before giviing them money. They were to analyze the paper on its merits. Face time was wrong.
A few years later, I got to know the branch manager better and asked about this. She explained that their default numbers were almost three times higher now than when they were when we originated the loan.
Imagine that. They knew what they were doing, did a good job, then the “government” steps in and screws it all up. Now we are left with another bill. Isn’t liberalism fun...?
atease
atease - 04:04pm on 04/03/2008
Here in California we seem to have sold a lot of houses to construction workers who were building houses.
Some of these houses were 2000 + square foot homes (McMansions) that went to roofers, tilers, dry wall hangers. In many cases the people buying them knew that the only way to make the payments were to have 5 or more room mates (who also happened to be in construction). Now that the construction boom has gone bust, and laborers are no longer desperately needed, the room mates can’t make the buyer’s payment for him.
Ability of the buyer to make the payment seems not to have been a major consideration.
Wing Chun Geologist - 04:04pm on 04/03/2008
When I lived in Atlanta, and all this crap started, back in the late ‘80s, I said that exactly what is happening would happen. Took 15 years, but we got here. Ain’t that just wonderful!?!?!?
2Hotel9 - 05:04pm on 04/03/2008
UBS, CitiGroup , DeutcheBank, unsuspecting investors
Hah. They made boatloads of money, now they are arranging for tax payers to pick up their losses.
Your loss shall be their gain.
bank regulators once again intervened and encouraged banks to push the paper out to unsuspecting investors
WOOF - 06:04pm on 04/03/2008
Everyone saw it coming - it just was never sustainable.
I remember buying this house. We HAD to MEET the bank before the loan was approved. They wanted to know us before giving us the 100,000.00 we needed. No big deal. We met with them after hours, talked about what we were doing for a living, what schools we went to etc. etc. Hands shook, loan approved.
A few years later, the bank officers were removed because they were NOT FOLLOWING proper lending practices. They were not allowed to meet folks before giviing them money. They were to analyze the paper on its merits. Face time was wrong.
A few years later, I got to know the branch manager better and asked about this. She explained that their default numbers were almost three times higher now than when they were when we originated the loan.
Imagine that. They knew what they were doing, did a good job, then the “government” steps in and screws it all up. Now we are left with another bill. Isn’t liberalism fun...?
atease
Here in California we seem to have sold a lot of houses to construction workers who were building houses.
Some of these houses were 2000 + square foot homes (McMansions) that went to roofers, tilers, dry wall hangers. In many cases the people buying them knew that the only way to make the payments were to have 5 or more room mates (who also happened to be in construction). Now that the construction boom has gone bust, and laborers are no longer desperately needed, the room mates can’t make the buyer’s payment for him.
Ability of the buyer to make the payment seems not to have been a major consideration.
When I lived in Atlanta, and all this crap started, back in the late ‘80s, I said that exactly what is happening would happen. Took 15 years, but we got here. Ain’t that just wonderful!?!?!?
UBS, CitiGroup , DeutcheBank, unsuspecting investors
Hah. They made boatloads of money, now they are arranging for tax payers to pick up their losses.
Your loss shall be their gain.
Everyone saw it coming - it just was never sustainable.