Nice, no better way to solve a problem than to sue. Maybe all these idiots should have purchased a home within their budget. Maybe they should have read all the fine print like they're supposed to. Where the fuck is the accountability in this damn country? Oh boo hoo the salesman sold me something I can't afford. The greatest salesman in the entire world couldn't sell me something that I couldn't afford. I know people are losing their houses but maybe they should look in the mirror for the person to blame.

I got my mortgage 1-1/2 years ago and I had talked to Countrywide but the person I met with and who was going to handle things didn't seem like anyone I would do business with. I smelled a rat, they were trying to convince me to take an adjustable rate mortgage, even saying I couldn't qualify for any other type. I had no trouble at all getting a fixed rate mortgage with another lender and I never even bothered to return the Countrywide jerk's phone calls after that.
Just one customer but it is a true story.

Both sides are at blame. If you try to buy a Lamborghini and can't afford it, or your credit sucks, you can't get the loan. It used to be that way with mortgages too.

Danni, sometimes ARMs are advantageous for certain customers.

Get in line--

There were/still are many scummy mortgage brokers and Countrywide has its fair shair. But during my brief stint in this industry I learned one thing: The reason why so many scummy mortgage brokers exist is because people don't want to know the truth. I sucked at being a broker because I wouldn't overhype anything. I wasn't all fake smiles on the phone. I used to get scolded for not using the standard line to sell an ARM "You can just refinance before it adjusts later" - mostly because in many situations it would be impossible for that person to refinance later and I knew it. And you know what? After spending hours and hours trying to find the best deal for people and answering all their assinine questions, many went to some other scumbag (sometimes Countrywide) who was ripping them off. At times, I could even prove to them that they were getting a worse deal but they didn't care because the other guy gave them a hell of a reach-around as he was reaming them.

I'm not saying crooked brokers should be punsished. They should. But the reason why the job attracts alot of sleazy people is because that is who most people want to deal with. I'm not saying this becasue I'm bitter. It was a temporary gig for me. I just found it shocking that people actually enjoy dealing with over the top charicatures of used car salesmen because I can't deal with that type of salesperson.

Danni--

I had the same kind of thing with Ameriquest--they wanted me to pay them 10k and put it into the loan with a lousy rate.

I told them to scram and found another lender.

Then the phone calls afterwards were too funny--The Manager called and I told him they were trying to cheat me and I found a lender and stop bugging me or I might sue and then I would own them.

So now that the Senate with Dodd giving CHL a bail out--how does that make everyone feel? We are going to foot the bill for the 300k homeowners who bought too much house or too much loan or for stupidity.

And then we get to pay for CHL --I'd like to get Dodd's loan. They are all crooks.

Why would anyone take a job that only pays 120k a year unless they were getting something else in return?

Nice, no better way to solve a problem than to sue. Maybe all these idiots should have purchased a home within their budget. Maybe they should have read all the fine print like they're supposed to. Where the fuck is the accountability in this damn country? Oh boo hoo the salesman sold me something I can't afford. The greatest salesman in the entire world couldn't sell me something that I couldn't afford. I know people are losing their houses but maybe they should look in the mirror for the person to blame.

Posted by dfiant at 2008-06-25 01:47 PM

Hey dumbshit, I had a lawyer read all the fine print, I bought a house I can afford, but I've still lost a hell of a lot of equity in my house because of the assholes who run the banks.

The best thing to tell a mortgage broker is that another broker is already working on an offer (especially if that is true).

What they charge you has alot to do with what they think they can get away with....

California is suing as well.

Hey dumbshit, I had a lawyer read all the fine print, I bought a house I can afford, but I've still lost a hell of a lot of equity in my house because of the assholes who run the banks.

Posted by Roy_Batty

What did the banks do?

Hey guys, Sen Dodd and his ASSHOLE democratic friends got deals from Countrywide and made out great. What happened to you poor slops that got fusked?

ROy is a bitter peon who bought a ratty house and is now sad that no one wants to buy his rat trap

DANNI (Dick Head) Maybe you knew Sen Dodd!

tim i was wondering if you managed to get a date yet? Last time we spoke you said you couldn't find somebody in NJ and you were trying the net.

Don't you people see it? The democrat answer to EVERYTHING is lawyers.

Why are you so shocked?

Democrat doesn't get his way? What do they do?

investigations, and lawyers.

And if that doesn't work, they classify it a conspiracy.

So in order, a democrat will always go to the playbook.

#1 investigations -they did that already. first step.
#2 call in the Lawyers -doing that now.
#3 Conspiracy from the right.

thats the next step if they can't get victory with #2.

And thats how it fucking is with EVERYTHING for democrats.

Kuma

Messiah. MY.Name is not Tim. It is Timmo. Nice try. I get all my dates at DNC fundraisers in NYC. I am going to one at the W in midtown on Saturday. It is always funny the morning after when I tell them I am voting for David Lesar.

The States will win initally. Then appeals will follow.

This is big enough to make it to the Supreme Court. So like the Exxon Valdez spill, it will drag on for twenty years.

Angelo Mozilo is 69 or 70 years old and took home $10.8 million for 2007. His reward for losing money for shareholders.

That would make him 89-90 when the case is finally settled. Meanwhile, all the little people will have lost their homes and/or down payments.

To grease the outcome, select Politicians on "Angies List" will continue to get special loan discounts. Meanwhile, Shrub seeks to further stifle Justice by stacking the Courts with "Conservatives" meaning people who put Corporate interests before mere human beings.

Nutcase corporations have been more important than American since 1792. Read the fine print

timbci I thought you said your town started with an H maybe Holmes?? or something and you were working in Finance and that you were looking for women on some dating site? It was a while ago. I was asking a legit question to see if you found a lady yet.

"It is always funny the morning after when I tell them I am voting for David Lesar.

Posted by timbc"

And even funnier when they tell him they have a penis.

What did the banks do?

Posted by SomeGuy2 at 2008-06-25 02:22 PM

We'll find out when the 400 people arrested by the FBI go to trial.

ROy is a bitter peon who bought a ratty house and is now sad that no one wants to buy his rat trap

Posted by timbci at 2008-06-25 02:34 PM

Nope. My house is still worth about two times what I payed for it, but it was worth a lot more before this mess.

Nope sorry. My name is Timmo. I am not from NJ. I have been to the Jersey shore before though but I prefer Newport. I work in Finance but I want to retire and open up a Fat Burger. As a far as dating goes I prefer meet women as Obama rallies. Not kidding . I liekkdateing waitresses that tell everyone that they are really actresses. My last Gf I met at an anti-war rally and I convinced her to do porn to pay the rent. She was stripping anyway so it wasn't a big jump

So Roy, what's your problem? Do you expect all your investments to just keep going up. Doubling your money in how many years, and having a place to live? Doesn't seem too bad to a detached observer.

Maybe with prices down, more people can afford to buy homes.

Roy you sound like a very greedy person. MAybe you should give your house to the homeless so they have a place to live.

Sanantonio.
It sounds like your are speaking from personal experience. Not my fault your abuse drugs to the extent you can't tell a man from a woman. Go take a biology class son and get in a program

Politicians can teach us all something valuable. Your agenda should benefit you. Look at the proposed bailout that Countrywide is receiving in return for the few dollars it paid to politicians. Excellent investment.

It seems that politicians are sociopaths. They manipulate for their own profit. The lenders were damned if they did, and damned if they didn't. Does anyone recall that not so long ago, the lenders were condemned for excluding "minorities" from the housing market because of the state of their creditworthiness. Now that the loans have been made and the anticipated defaults have occurred, the lenders are criticized for making the loans that they were earlier on criticized for not making.

The politicians are seldom held to account for their hypocrisy. They change positions as the wind blows, as easily as people change socks in the morning.

Way to go, Sen. Dodd.

The political lynching of lenders is in process. It's unfortunate that the venue is not used to say, "Senator" (or "Congressman"), I have here your letter excoriating me for not lending money to non-creditworthy people. Here, it's from your office and signed by you. Do you remember when you advocated a policy that would "loosen up" the practices of lenders. You spoke. We listened after we examined our situation, and we acted in enlightened self-interest.

"investigations, and lawyers."
Posted by Kuma

Still haven't mastered the bar exam, I see.

"My last Gf I met at an anti-war rally and I convinced her to do porn to pay the rent. She was stripping anyway so it wasn't a big jump

Posted by timbci"

They're still looking for the body. Good hiding place, Timmy.

Jomama. Actually she now works for Anthony Weiner and yes she still strips on the weekends to supplement her income

I don't understand senator Christopher Dodd had no trouble getting a low interest loan from Countrywide. He even got a VIP loan at that.

Who really cares. Whats one senator more or less in the pocket of a slimy subprime lender.

Oh, thats right he does control the committee that oversees legislation affection good old Countrywide.

Way to go democrats!

SEE YOU IN DENVER!!!

Bee Swell

TIMBCI: Rich Lowry is giving his opinion. I've bought 6 houses in my time and if I was getting special treatment, I WOULD KNOW IT! Antway Rich Lowry is a George Soros lacky.

and as I said before.....ON NPR so you know it HAS TO BE TRUE....I felt really sorry for a lady who was losing her house and thought someone should do something about it......and then we found out that she was hispanic and had a couple of kids and cleaned houses for a living....
and her house cost....FOUR HUNDRED THOUSAND DOLLARS.......what?????????

and its liberal irony that the government is about to bail out with THREE HUNDRED BILLION DOLLARS....people who EVEN THE GOVERNMENT WOULDNT TAKE A RISK ON..

but as said before......she should have been a senator from CONN>.....SHITFIRE>....they get sweetheart deals and then tell us they DIDNT EVEN KNOW ABOUT IT.......you guys are so funny.....

If anything thse idiots who bought houses that they could not afford should be sent to jail for buying a house that could not afford and taking the opportunity of ownership away from someone who could actually afford it

"If anything thse idiots who bought houses that they could not afford should be sent to jai"

What about the other set of signatures on that deal...you know, the mortgage brokers? Jail as well?

What about the other set of signatures on that deal...you know, the mortgage brokers? Jail as well?
Posted by Danforth

Dan - see Danni's 1:47, Einstein.

Danni is correct, and so is Sully. There are alot of sleazy mortg. brokers out there, and many buyers who don't want to know/speak the truth. It seems all most impossible to get a lock from a Broker....

Many of the best deals come directly from banks, you have to shop around, find a good rate and get all the cost upfront, and your rate locked in. Are there times when variables are better YES, but why risk it????

That being said Countrywide use to offer a lock and shop deal that was one of the best around...Lawsuits are a part of biz, and this was bound to happen. Good think BAC will be there to foot the bills, California has also announced their intent to sue CFC!!!!

"see Danni's 1:47, Einstein."

What's your point?

I skipped down to the bottom to through my 2 cents in the ring cause I do live in IL. Today only proved my point that Lord Senator Dodd is scum. Taking a below market loan. He should leave his position on that board NOW. In Illinois a illegal alien can(could) go into a Illinois bank and get a loan at lower than average rates, regardless if they had any money. Screw the Citizens who need help we got get these POTENTIAL VOTERS IN OUR POCKETS! And fucking John Shimkus just the other day proposed the day be made: National Corvette Day. Ya thats what you should be doing with your time, declaring days! There isnt anything els more pressing for you asshats in Springfield(D.C. to for that matter) to do with you time. Its not like we have a piss poor budget, Buisness leaving the state like it was a race, a federal corruption trial, a Governor that is too stupid to understand the Governor mansion is were the Governor works. Goodnite this state is fucked. And who is in charge here? I ask agian, WHO HOLDS ALL THE POWER IN THIS STATE? WHO HOLDS EVERY RANKING OFFICE, HAS MAJORITIES IN THE SENATE AND THE HOUSE YET DOES NOTHING TO HELP THE CITEZENS OF ILLINOIS? I'll give you a hint: It rhymes with democrat.

The borrower who got in over his head in a loan is just fucked. Sorry life sux sometimes. Buy a helmet. Also dont try to buy a house without like 15-25%of the total cost. The lenders though, I'm in favor of the death penalty for them.

Agreed with Gottruth. Just like to add though, that you can be sure that the Lenders have armies if lawyers, and would gladly screw anyonne and anything given half a chance. Before you go blaming some fantasy Democratic Lawyer Mentality, keep in mind who wrote the contracts to begin with.

If you have a contract, a lawyer is involved somewhere, and the world has run on contracts since the 12th century, at least. Get over it.

It seems that politicians are sociopaths. They manipulate for their own profit.

And voters are brain dead.

The story of Countrywide gets better. The sold their mortgages to Fannie Mae and Freddie Mac who knew what they were buying. Those are two other whales that are going to blow some day. When the whole criminal story unfolds, it will be bigger than Enron.

People are brain dead. I know a lot that 40k a year and live in a 400k house.

Live within your means....

How many of you have their house payed off?

If you have a contract, a lawyer is involved somewhere, and the world has run on contracts since the 12th century, at least. Get over it.

Posted by argh at 2008

this reminds me of all in the family this morning.
archie got robbed while driving the cab and when a lawyer came to the door to bribe him to drop the charges he said.

the lawyer introduced himself as a lawyer and archie said...
I dont need a lawyer. Ive already been robbed once today........I laughed out loud.......

"When the whole criminal story unfolds, it will be bigger than Enron."

And probably result in just as much justice, which is to say damned little.

I just read through the comments about Countrywide. The amazing thing is how the liberals come to the defence of their reps. "Oh Sen Dodd didn't know he was getting a VIP break". Please, Give me a break. We all know that when a democrate gets caught, they get off easy. What a sleazy bunch of ASSHOLES.

Actually Ozzie I don't think the program was that much of a break. The "friends" got 1/4% reduction in rates, and perhaps easier qualifications. If for instance the old boss of fannie Mae couldn't get a break on a mortgage who could???

DAVETHEWAVE: "WHO COULD" Sen Dodd and his buddies. A quarter % on his two homes come to a nice savings.

Goodnite this state is fucked. And who is in charge here? I ask agian, WHO HOLDS ALL THE POWER IN THIS STATE? WHO HOLDS EVERY RANKING OFFICE, HAS MAJORITIES IN THE SENATE AND THE HOUSE YET DOES NOTHING TO HELP THE CITEZENS OF ILLINOIS? I'll give you a hint: It rhymes with democrat.

Damn I thought you were talking about California. Other than the worthless Gov we mirror you in the States political majorities. Not to mention the same ridiculous attempts to tax and restrict every aspect of your life.

Today we have career politicians who jump from state back to city, back to county, back to state skirting Californias term limit policies. Top career politician POS Attorney General Jerry Brown has filed suit and said he wants all borrowers deceived to have all loans rescinded or discounted. Is this clown for real? Just give these homes to owners for pennies on the dollar? Even though Countrywide has long sold off the Notes and fuck the entities that currently own them? It is comical if one reads the basis and foundations of the lawsuit. What he fails to get is the Lenders protections and legal requirements of every mortgage funded and sold. The layers of conditions and documents needed to fulfill the transactions. Including protections against future fraud and defaults. Not to mention the loans being insured, underwritten and approved under Fannie and Freddie guidelines prior to being sold to Wall Street or overseas.

The borrowers sign documents which are sent to the various agencies of the Federal Government. Those are required by the Fed and are under the threat of prosecution for perjury or other laws. So when someone states on the 1003 they make $10,000 a month as a manager at El Pollo Loco, they also sign a W-9 which goes right to the IRS in case of default or fraud. I can't wait for the homeowner to testify he was duped in thinking he made more money than he could prove. Which is why he chose the option arm to qualify and purchase a home.

"see Danni's 1:47, Einstein."
What's your point?
Posted by Danforth

As Danni illustrated, nobody can force you to sign your name to something. If Danni can figure it out, then anyone should be able to.

Sorry Danni! That didn't come out just right!

"nobody can force you to sign your name to something."

True...but shouldn't the lenders be able to do the math as well? In fact, better?

And which of the two groups ended up with whatever equity the buyers had?

And which of the two groups ended up with whatever equity the buyers had?

Posted by Danforth

You got that right... the mortgage companies and brokers did, because they sold off the mortgages before the fit hit the shan.

True...but shouldn't the lenders be able to do the math as well? In fact, better?

Which math is that? Predicting what the rates are going to be in five years? There is a document called the Federal Truth In Lending which is required on all mortgages. It breaks down what your payments are and could be at various points of the loan. Including the APR and the total amount paid at the end of the term. The Note also spells out exactly what your payments are based on the index it is tied to and the margin tied to the index. The Note explains the maximum the rate can go up and the minmum it can drop to. There are a handful of documents given to the borrower before and after the loan has funded spelling out the numbers.

True...but shouldn't the lenders be able to do the math as well? In fact, better?

And which of the two groups ended up with whatever equity the buyers had?

Posted by Danforth

Dan - I agree with your first statement - all the more reason to be wary, as Dani was.

The second one is tricky because the original actors made their $$ and are long gone. Now there is no equity - only foreclosure and sadly, someone losing their home.

"Which math is that?"

The one that knows a housecleaner can't afford a $400,000 home.

I listened to my father, a Realtor for over 35 years, tell folks they couldn't afford that particular house all my life, so don't suggest the lenders have no responsibilities beyond collecting their fees. My father could have made a lot more money by doing what these lenders did; he chose scruples instead.

"The second one is tricky because the original actors made their $$ and are long gone."

But, presumably, those original actors all went to school, took math, and had to show some proficiency to get jobs where people with money trusted them with their money. Before packaging the loans and (I assume) misrepresenting the overall strength of those loans to new buyers, the originators had to first greenlight the $400k loan to the housecleaner making, say, $40k. WTF?!?

While it's true everyone should be responsible for everything to which they sign their name, there are also laws about taking advantage of the retarded, and after helping folks with there taxes & finances for a few decades, I can assure you: when it comes to their money, most folks are retarded.

The one that knows a housecleaner can't afford a $400,000 home.

So the Lender should simply tell the housecleaner sorry? We don't believe you can afford this home? Yet the housecleaner either provides documentation as to the amount they make or is in a postion based on the credit risk to state they make enough. Then what? You seem to forget most large Lenders drink from the same well when it comes to qualifying someone. They all use the same electronic underwriting systems. The days of contract underwriting or packaging a loan are going by the wayside.

"So the Lender should simply tell the housecleaner sorry? We don't believe you can afford this home?"

Yes, absolutely. On $40k (and I was being generous), she can't afford a $400,000 home.

"Yet the housecleaner either provides documentation as to the amount they make or is in a postion based on the credit risk to state they make enough."

Whoa!...you're changing the goalposts. That's part of the whole point: she a) didn't have to provide documentation, and b) the lenders ignored the credit risk. I believe the housecleaner is responsible for a) (as are the lenders for not demanding it), and the lenders are responsible for b).

"The second one is tricky because the original actors made their $$ and are long gone."

Let's not forget the buyers and sellers agents, the lawyers or closing agents in wet states, the loan officers, processors, funders... should they all be culpable?

Keep in mind every Broker/Lender agreement has penalties for early payoffs or defaults. Including buying back the loan and or paying back any rebates paid by the Lenders to the TPO.

Dan - relax, nobody's attacking yer old man.

Yes the lenders absolutely have responsibility - they should not approve risky loans.

But that's a different argument than people are somehow not responsible and that - in your words - they are too retarded to make their own decision.

the lenders ignored the credit risk.

The credit risk determines what program the borrower can be qualified under. It is the number one factor in regards to rate, program, discount, ability to sell the loan. Under the Fannie, Freddie guidelines at the time if one had a risk score of say 720 and could not qualify under a full doc loan program, they could move to a stated or reduced doc and the Lender could NOT ask the employer what they made. These are a higher risk and are priced accordingly. The borrowers sign under perjury and know the implications if they lied or default.

ok so both sides are at fault. why does MY tax money have to come into the equation???

"too retarded to make their own decision."

Do you know anyone---seriously---who reads all the fine print at a closing? Okay, now...what percentage?

"and the Lender could NOT ask the employer what they made"

Well, that's a mistake in the Freddie & Fannie rules then, isn't it? Where was the Republican oversight?

"too retarded to make their own decision."

Do you know anyone---seriously---who reads all the fine print at a closing? Okay, now...what percentage?

Does that inlcude the Dem in Congress who is about to lose her houses?

"too retarded to make their own decision."
Do you know anyone---seriously---who reads all the fine print at a closing? Okay, now...what percentage?
Posted by Danforth

Dan - It's quite a leap from "doesn't read all the fine print at closing" to "retarded" and therefore "need to be protected." Pretty weak argument.

And in any case, the consequences of default are not buried in the fine print.

ok so both sides are at fault. why does MY tax money have to come into the equation???

Posted by Monster

to bail out the holding companies who bought up the mortgage bundles. don't kid yourself that it would be happening for any other reason.

And in any case, the consequences of default are not buried in the fine print.

Unless fine print is determined by font size. The application and other Federal documents clearly state under perjury... right below the signature line.

"Yet the housecleaner either provides documentation as to the amount they make or is in a postion based on the credit risk to state they make enough"

Not really. Stated income loans for wage earners were very popular a few years. It the borrower doesn't qualify for the loan based on real earnings, the broker just changes the earnings and then prices it out and qualifies it using a stated income program. The broker is not even going to mention this to the borrower just "Great news, I got you approved." If the borrower asks when he sees the forms, the broker says "They aren't going to check, it isn't important." Basically, the broker sits at his computer and runs the application through the software, continaully making tweeks until it is approved. The most common tweek is to change the income.

Now, the payment this borrower has to make every month is still on the forms and it should be obvious to this borrower that he/she can't afford it. But nobody else in the process is going to do anything but gloss over that fact.

"Keep in mind every Broker/Lender agreement has penalties for early payoffs or defaults."

That isn't true. I don't even think these penalties are legal everywhere. I think Countrywide (it was one of the big lenders) had a standard 2-year prepay on all its loans (where it was legal). Couple that with a negative amortization loan and its a guaranteed forclosure. But plenty of brokers don't even look at programs with prepays because you don't make any more money and they are harder to sell.

Not really. Stated income loans for wage earners were very popular a few years. It the borrower doesn't qualify for the loan based on real earnings, the broker just changes the earnings and then prices it out and qualifies it using a stated income program.

For the most part that is true. But the Broker or TPO must also include other factors in order to be approved for the said program. Such as equity, assets, credit score, occupancy, LTV etc. They can't just put whatever they want and expect it to fly. It still must be considered reasonable when stating the income used to qualify. The Lenders have no incentive to risk putting out their money on potential non perfoming loans.

In regards to the penalties for early payoff or default... EVERY Lender has an agreement with any Company who submits or sells them loans. It has nothing to do with prepays the borrower agrees to.

Most borrowers could afford the initial payments... its the 2-3 times the original payment that screwed them... something that the brokers assured them would never happen... at least not before they could refinance at a fixed rate.

Most borrowers could afford the initial payments... its the 2-3 times the original payment that screwed them... something that the brokers assured them would never happen... at least not before they could refinance at a fixed rate.

Posted by Hagbard_Celine at 2008-06-26 12:36 PM

Most borrowers couldn't qualify without those low initial payments. Brokers would much rather do a fixed loan than an adjustable.

Most borrowers could afford the initial payments... its the 2-3 times the original payment that screwed them... something that the brokers assured them would never happen... at least not before they could refinance at a fixed rate.
Posted by Hagbard_Celine

Again - see Danni's example. They can tell you anything they want but you must proceed with caution before you sign.

Hey dumbshit, I had a lawyer read all the fine print, I bought a house I can afford, but I've still lost a hell of a lot of equity in my house because of the assholes who run the banks.

The market was over inflated and so was your home's value. If you were dumb enough to think that the real estate gravy train was going to keep lining your pockets for eternity than you got what you deserved and will continue to get more.

Sorry if I come off harsh but I have zero sympathy for people who make horrible financial decisions and then expect everyone else to bail them out. It's only money, you don't have to be an accountant or a CFO to know what you can and cannot afford.

"...douchebaggery..."

Posted by dfiant at 2008-06-26 01:53 PM | Reply | Flag: ELOQUENT!

I like it.

" It's quite a leap from "doesn't read all the fine print at closing" to "retarded" and therefore "need to be protected.""

I agree. I never said they need to be protected, I said (in essence) I agree with IL suing over "unfair and deceptive" practices. Someone signing a $40k housecleaner to a $400K house either is aware she's going to pay all the upfront fees and still lose all her equity down the line, or is unaware of what's going to happen. Either way, they shouldn't be at that job, and if they misrepresented the quality of those loans when they repackaged them, they've committed fraud as well.

The big question, though, is how did it get this way? No money down? 125% LTV?? Loans that reset with monstrous increases? Who the fuck is running this show?!?

"Most borrowers couldn't qualify without those low initial payments. Brokers would much rather do a fixed loan than an adjustable."

True. But the way you sell an adjustable is to tell the person they can refinance out of it later.

In many cases, the broker knows that probably isn't going to to be possible because the borrower's mortgage or 1st and 2nd mortgages are 95% of the value of the house or higher. If you put a borrower in an ARM with no equity remaining and tell them that they can refinance later when they voice concern about the ARM, you are being negligent at best and more likely, completely dishonest.

The worst practice is putting people in negative ammortization loans. The borrower has the option of paying one of four payments every month: 1) Minimum payment, which is less than the interest owed for that month and therefore you borrow more money when you make this payment 2) Interest only or 3) Principal & Interest or 4) a larger amount of your choosing.

You qualify the person on the minimum payment, which is all they can afford in most cases. They make the minimum payment, continually increasing the balance of the loan in the process. When the loan balance increases by 10% over what you originally borrowed, you get locked into a fix payment at a ridiculous rate that you can't possibly afford and then the bank forecloses.

The loan was actaully designed for rich people who make large chunks of money seasonally (huge bonuses for example) and who will then use those windfalls to pay down the balance. But brokers decided to start using it to entice suckers with low payments. And for whatever reason, the banks approved these automatic foreclosures.

Most of the time there was nothing you could do for these people when they wanted to refinance other than to tell them to call a bankruptcy attorney.

So will they indite the 6 Democrats that favored Country wide?