FBI probes 14 companies over home loans - Page 2

Veronica · 01-30-2008, 07:13 PM

Quote:

Originally Posted by jowey

If they are stupid enough to give money away they deserve to lose it. I think it so funny that these "businesses" would give people loans/credit cards who cannot afford the payments on the high limits and then cry when they are not paid.

Also they can legally attach to anyone who was put down as a reference and claim that person owes them. This is their solution, to extort money from family and friends rather than eat their stupidity. It is not the desperate person's fault for taking the risk in hopes of being able to pay, it is the moron that put the carrot out and then gets their hand bitten.

A mortgage company cannot get the money from a reference, only the people that signed the contract ( promissory note). That is misinformation.

Ptech · 01-30-2008, 07:35 PM

60 Minutes covered this on Sunday. This was fraud from the beginning. Some folks who bought a new home actually moved in and received money.

The scam, apparently, was bundling the debt and selling it to others as secured loans.

When the house of cards collapses, it ain't gonna be pretty.

cheapseats · 01-31-2008, 05:12 PM

[quote=Ptech;93268]

Quote:

60 Minutes covered this on Sunday.

I got it from MY guy weeks ago, as I posted right here. This, then, is either NOT breaking news or I really am ALL THAT. My money says they're all still pussy footing around about how bad the news is, and giving a bunch of scoundrels a head start.

Quote:

This was fraud from the beginning. Some folks who bought a new home actually moved in and received money.

The scam, apparently, was bundling the debt and selling it to others as secured loans.

Yep. All that predatory zero-money-down-no-collateral-no-security lending? And all that marshmellow-soft-and-gooey-there-IS-such-thing-as-a-free-lunch borrowing? It was bundled with "A Paper" (not reckless loans) in order to present a lower than great but higher than shitty rating to investors.

THAT'S what's sold to financial institutions, with the number of transactions alone making it impossible for brokers to verify the ratings.

ONE COMPANY DOES ALL THE RATING, I was told. ONE.

Layoffs, stagnant wages, skyrocketing energy and healthcare costs...the riskier loans, the people closer to the edge in the first place, OBVIOUSLY, were the first to be impacted.

THE AFOREMENTIONED LONE-READ-THAT-MONOPOLISTIC RATING COMPANY...I am told by sources that seem to have their ear closer to the ground that do the Corporate Lackeys in Mainstream-read-that-Big Money Media...was slow to revise ratings and notify financial institutions.

Quote:

When the house of cards collapses, it ain't gonna be pretty.

It's gonna get worse before it gets better, all "my" experts agree. We're talking about rampant consumption all over the place. Those on the most precarious end weren't the only ones living beyond their means, they're just the first to go down. No wiggle room.

Lotsa people can afford a bad month or year, who can't afford hard times beyond that without major re-grouping. Americans save very little. Lots more middle class are slated to bite the dust. Rents are going up...the people who lost their homes (32,000 foreclosures in California in 06, I think but couldn't swear) have to rent. Some renters will go out on the street. In a big city like Los Angeles, you can tell the ones who are new on the street THAT way. Clean, proper rolling suitcase...a look like, "Don't mind me, I've just decided to embrace mass transit for everything, even trips to and from the airport" nonchalance. Then you see 'em a few weeks or months later...it was heartbreaking, until I was advised right here on this Board that anecdotes are meaningless.

I bet hose writers that neither Democratic candidate is helping are REALLY feelin' the heat by now.

There are some people who belong in jail, my experts all agree about that, too.

cheapseats · 01-31-2008, 05:53 PM

Quote:

Originally Posted by leftofright

People living beyond their means, pure and simple. Anyone that signed an ARM isn't the brightest person to begin with and had they not signed that they would have lost to some scheme through the mail. If you bail out the stupid, they never learn.

You bet. If they're gonna bail out homeowners, they need to pay off my VISA balance. Otherwise it's discrimination.

My point is that a bunch more people...the ones who were however many months ahead of their game...are gonna go down. As in, it's gonna get worse before it gets better.

I've seen a few NICE houses, in neighborhoods I wouldn't expect, with BANK OWNED on the For Sale sign.

cheapseats · 01-31-2008, 06:12 PM

Quote:

Originally Posted by leftofright

I met a couple of school teachers yesterday looking to trade their new bigger nicer home for ours (it's for sale). They were willing to take a huge loss to get out of their 2900/month house payment on teachers salaries, damn wonder they didn't have to ride the bus. Ours is paid for and we saved enough over the years to upgrade with just a 5 year note.

Responsible as you are, I'm going to ask as personal favor, please, that you consider changing your avatar. I would so appreciate it.

jowey · 01-31-2008, 06:31 PM

Quote:

Originally Posted by Veronica

A mortgage company cannot get the money from a reference, only the people that signed the contract ( promissory note). That is misinformation.

Maybe not a mortgage company, but a credit card company can.

cheapseats · 01-31-2008, 06:31 PM

Quote:

Originally Posted by leftofright

Acceptable Friend?

More than. If money talks, your new avatar indicates that you have much to say.

It was sweet of you to do, and I appreciate it.

Veronica · 01-31-2008, 08:29 PM

Quote:

Originally Posted by jowey

Maybe not a mortgage company, but a credit card company can.

No they can not, unless they were a cosigner. They can call the people you list as a reference to locate you if you haven't paid the bill. They can not demand payment from those people.

cheapseats · 02-01-2008, 12:20 AM

Quote:

Originally Posted by cheapseats

...All that predatory zero-money-down-no-collateral-no-security lending? And all that marshmellow-soft-and-gooey-there-IS-such-thing-as-a-free-lunch borrowing? It was bundled with "A Paper" (not reckless loans) in order to present a lower than great but higher than shitty rating to investors.

THAT'S what's sold to financial institutions, with the number of transactions alone making it impossible for brokers to verify the ratings.

ONE COMPANY DOES ALL THE RATING, I was told. ONE.

...THE AFOREMENTIONED LONE-READ-THAT-MONOPOLISTIC RATING COMPANY...was slow to revise ratings and notify financial institutions.

...There are some people who belong in jail...

Sooo, what's the name of this company-that-is-conveniently-for-liability-purposes-not-a-person...and who's the person who DOES, in fact, head it?

cheapseats · 02-01-2008, 11:42 AM

Quote:

Originally Posted by cheapseats

Sooo, what's the name of this company-that-is-conveniently-for-liability-purposes-not-a-person...and who's the person who DOES, in fact, head it?

Silly me. Not one agency, two. Standard & Poor and Moody's.

Shouldn't be too hard to figure out the head honchos THERE, where the buck stops.

NOTHING nips behavior in the bud like sending a couple people to a federal penitentiary.

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