Urging Banks to Make Home Loans to Poor Credit
 

WaPo article
I work as a large commercial lender for a bank. This is such a bad idea.

Lets recreate the bubble that just burst.

Don't trip, my boy Obama got dat Obama money to bail us out dawgg

https://www.miataturbo.net/attachmen...ine=1365043751


F-it. Do it. Seriously. Make homes cheaper for me to buy then sell for profit!

repost:

https://www.miataturbo.net/current-e...08/#post997020

It's too bad there is no previous experience with this kind of thing to know how it will work out.

brb guys bout to start cc ballin

Does it sound stupid? Yes.


Did I get turned down for <$100k loans with a >700 credit rating? Also yes.

do you have collateral?

Does anyone buying their first house?

why would you take out a personal loan to buy a house?

In the short term, this will make homes *more* expensive.

In the long term, this will cause the bottom to fall out of the housing market AGAIN, before slowly beginning to return to equilibrium.

So your plan is not to wait until creditors start giving loans to errebody and buy a bunch of houses - your plan is to start saving money now, Sell your house for much profit just before the housing market peaks, then rent for 3 years as loans default, the housing market falls to pieces, and prices drop through the floor - then buy the shit out of some short sales and foreclosures with cash and rent them for 5 years until the market comes back around.

"The house" is collateral.....

"The large down payment" or "PMI" is insurance against a decline in value of the collateral

"Homeowners insurance" is insurance against catastrophic damage to the banks collateral

An "Escrow account" is insurance against you being a dumbass and not paying up your Homeowner's Insurance premiums or property tax.

Ah, I thought he meant something other than "the house".

And yeah I had cash for a 15% down payment. Still needed help from a non-profit that helps people with bad credit to even get pre-approved.

Hell I didn't even have a choice with the house I bought. I HAD to buy it cash because nobody would even talk to me about a loan for a $40k house. I could walk up to any car dealership in the country and walk away with a $40k car.

There's a lot more to the picture than a simple credit score. Credit scores do not equate to or solely dictate the credit worthiness of a given transaction or loan. Credit scores are backwards looking evaluations of a person's borrowing habits and repayment fidelity.

Loans, and especially in more recent times mortgage loans, are determined based on the value of collateral, amount of downpayment, cushion on the Borrower's ability to service debt, and the given bank's existing portfolio weight and condition of similar type loans. A lot of banks got burned and are still being dragged down by underwater or fully defaulted mortgage portfolios. This makes them very reluctant to make anything but the very safest mortgage loans in the current market.

A local mortgage broker can put his or her finger on the banks in your area that would be willing to do a consumer mortgage loan with your credit metrics.

this is what FHA is for.

I am actually getting charged an extra .25 interest for my mortgage loan being under 100k. Their reason for that is because they will make less money off interest on the house.

Yep, some banks do that. It's a backwards economy of scale. They incur the same fixed cost for each mortgage regardless of the size. Inefficient/top heavy banks can't maintain their return on assets unless they juice the interest rate on smaller loans...

Zombie bank problems.



Kidding aside, your points are very valid (which you would expect given your background).

I heard an ad a few days ago, "Refinance your house for up to 150% of the value!" It's like the government is trying to get us right back into the same situation we've been trying to dig ourselves out of the last ~5 years. I guess I should jump on the opportunity to snag the $200k and never make a payment on it.

How has this spamming bot not had it's posts deleted and been banned? :confused:

No one reported the post. I just found it, deleted it and banned him.

Banks for sure need to loosen up lending, and I would argue that a better way to judge who's "fit" for a loan is someone w/ a low debt-to-income ratio. Inherently a lot of people whose income is high and debt low have good credit scores, but it's not a given. I have a few friends that make $100K plus but have really bad credit because of past mistakes. They've learned, they've acquired better jobs, and yet their credit score still lags behind the positive changes they've made in their lives, financial and otherwise.

Why should they?

Will you noobs shut the fuck up and stop bumping this thread out of nowhere?

God, you are like the fucking champion of the internet. :fawk:

No, but i'm at least pro enough to recognize that Matty-Cakes over here has no interest in actually becoming a part of the forum and is instead some strange spamming piece of shit.

And apparently pro enough for you to contract ass pain over my comments. So i'll take that as a win for an otherwise boring Friday.

Ninety-Seven

NOOB. Tell me the significance of the number Ninety-Seven as it relates to your post above. Figure it out, tell us what it is, and perhaps we can let this slide as an unfortunate one-time mistake related to your toddleresque ways.

Otherwise, you're going to have a hard time.

You're "pro" enough? Somebody pays you for your grammatical errors? That's impressive.

#getajob

ZOMG!!!! YOU'RE REAL!!!!!!

I'm afraid I don't understand what grammatical error I have committed, but that's a pretty impressive and quick jump into grammar-nazi land as your second post on a forum dedicated to the art of applying forced-induction to Miatas.

That said, of course my use of the word "pro" in that sense was slang and/or vernacular used by people of my generation. That being those who refuse to get the hell off your lawn.


I like your hashtag though, it's cute and hip. It's like you want to fit in.



#postingwhileatwork #swag #mahbawlsurface

Let me improve this thread.

https://www.miataturbo.net/attachmen...ine=1376081426

NOOB. NINETY-FUCKING-SEVEN.

I actually enjoyed all of that. Except for when you called me a Nazi. I like soup just like anybody else, so.

These are still called pound symbols, right? ----> # ... What's a "hashtag"? I'm old and un-hip and ... wait, people still stay "hip"? Thank God!

I'm also posting from work. Something tells me we're both unemployed soon. Hopefully you first, though.

Anyway...what were we talking about?

So what you're saying is, that you meant to post "pound get a job?"


Your attempts to make yourself sound middle-aged and mature are falling upon deaf ears.

You can hear this?

You know how some people can read lips?

I can tell what you're typing through the sound of your keyboard.


From two cubicles away.

Because my post count is 1337, bitches.

Touche. I'll quit chirpin', now.

Big ups to fooger for the Scarlet photo, though.