My sister worked for a very large, now defunct, mortgage company back in 2003/2004.
When she did underwriting, she came across loans that had the borrows income stated at $30,000 and trying to purchase a $500,000 house. When she rejected them, she was told it was be best for her to allow them through if she wished to continue working for them. She quit the following week. She said the company was involved in way too much fraud... changing dates, income, value of houses after papers are signed. Back in early 2004, she said that if this keep occurring that there will be a disaster in the future... -----Original Message----- From: Maureen [mailto:[EMAIL PROTECTED] Sent: Thursday, September 25, 2008 3:19 PM To: cf-community Subject: Re: We just wanted to choose a really large number... I would say that most people who can afford to pay their housing cost will pay, but there is always a group of bogus borrowers who will take advantage of easy credit to either live free . No money down and no equity in the house - walking away is easy. Not really sure what your point is about Keynes. Maybe you could explain. On Thu, Sep 25, 2008 at 2:24 PM, Dana <[EMAIL PROTECTED]> wrote: > bottom line though, they cannot afford the payments? If people can > afford to pay their housing costs usually they will, yes? If you agree > with that statement, then ask yourself what Keynes would say. > > On Thu, Sep 25, 2008 at 1:33 PM, Maureen <[EMAIL PROTECTED]> wrote: >> The problem in the mortgage industry is that people applied for loans >> with an adjustable rate interest that had low initial rates, but now >> the higher rate and higher payments are kicking in and they can't >> afford the payments. Credit has tightened and they cannot no longer >> qualify for refinancing. Add high gas and food prices to that and you >> have a recipe for disaster. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:270919 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5
