Urging Banks to Make Home Loans to Poor Credit - Miata Turbo Forum - Boost cars, acquire cats.

Welcome to Miataturbo.net   Members
 


Current Events, News, Politics Keep the politics here.

Reply
 
 
 
LinkBack Thread Tools Search this Thread
Old 04-03-2013, 09:07 PM   #1
Junior Member
Thread Starter
 
Join Date: Mar 2013
Location: Houston
Posts: 113
Total Cats: -3
Default 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.

Last edited by Fathom55; 04-03-2013 at 09:08 PM. Reason: Broke the Hyperlink
Fathom55 is offline   Reply With Quote
Old 04-03-2013, 09:23 PM   #2
Murderator
iTrader: (76)
 
18psi's Avatar
 
Join Date: Apr 2008
Posts: 36,199
Total Cats: 2,584
Default

Lets recreate the bubble that just burst.

Don't trip, my boy Obama got dat Obama money to bail us out dawgg
18psi is offline   Reply With Quote
Old 04-03-2013, 10:50 PM   #3
Elite Member
iTrader: (9)
 
Join Date: Sep 2008
Location: Livonia, Michigan
Posts: 5,684
Total Cats: 10
Default

Attached Thumbnails
Urging Banks to Make Home Loans to Poor Credit-joker-herewego_zpsac94e649.gif  
buffon01 is offline   Reply With Quote
Old 04-03-2013, 11:49 PM   #4
Elite Member
iTrader: (11)
 
Join Date: Jun 2007
Location: Overland Park, Kansas
Posts: 5,382
Total Cats: 43
Default




F-it. Do it. Seriously. Make homes cheaper for me to buy then sell for profit!
Attached Thumbnails
Urging Banks to Make Home Loans to Poor Credit-aol%252bvs.%252bwindows%252b8..jpeg  
elesjuan is offline   Reply With Quote
Old 04-04-2013, 09:40 AM   #5
Boost Czar
iTrader: (61)
 
Braineack's Avatar
 
Join Date: May 2005
Location: Chantilly, VA
Posts: 72,900
Total Cats: 1,792
Default

Braineack is offline   Reply With Quote
Old 04-04-2013, 10:24 AM   #6
Tour de Franzia
iTrader: (6)
 
hustler's Avatar
 
Join Date: Jun 2006
Location: Republic of Dallas
Posts: 29,114
Total Cats: 351
Default

It's too bad there is no previous experience with this kind of thing to know how it will work out.
hustler is offline   Reply With Quote
Old 04-04-2013, 11:52 AM   #7
Murderator
iTrader: (76)
 
18psi's Avatar
 
Join Date: Apr 2008
Posts: 36,199
Total Cats: 2,584
Default

brb guys bout to start cc ballin
18psi is offline   Reply With Quote
Old 04-04-2013, 02:24 PM   #8
Elite Member
iTrader: (2)
 
Join Date: Aug 2012
Location: Indianapolis
Posts: 3,325
Total Cats: 235
Default

Does it sound stupid? Yes.


Did I get turned down for <$100k loans with a >700 credit rating? Also yes.
thenuge26 is offline   Reply With Quote
Old 04-04-2013, 02:26 PM   #9
Boost Czar
iTrader: (61)
 
Braineack's Avatar
 
Join Date: May 2005
Location: Chantilly, VA
Posts: 72,900
Total Cats: 1,792
Default

do you have collateral?
Braineack is offline   Reply With Quote
Old 04-04-2013, 02:30 PM   #10
Elite Member
iTrader: (2)
 
Join Date: Aug 2012
Location: Indianapolis
Posts: 3,325
Total Cats: 235
Default

Does anyone buying their first house?
thenuge26 is offline   Reply With Quote
Old 04-04-2013, 02:37 PM   #11
Boost Czar
iTrader: (61)
 
Braineack's Avatar
 
Join Date: May 2005
Location: Chantilly, VA
Posts: 72,900
Total Cats: 1,792
Default

Quote:
Originally Posted by thenuge26 View Post
Does anyone buying their first house?
why would you take out a personal loan to buy a house?
Braineack is offline   Reply With Quote
Old 04-04-2013, 02:48 PM   #12
Elite Member
iTrader: (2)
 
fooger03's Avatar
 
Join Date: Jan 2009
Location: Columbus, OH
Posts: 4,133
Total Cats: 188
Default

Quote:
Originally Posted by elesjuan View Post



F-it. Do it. Seriously. Make homes cheaper for me to buy then sell for profit!
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 **** out of some short sales and foreclosures with cash and rent them for 5 years until the market comes back around.
fooger03 is offline   Reply With Quote
Old 04-04-2013, 02:52 PM   #13
Elite Member
iTrader: (2)
 
fooger03's Avatar
 
Join Date: Jan 2009
Location: Columbus, OH
Posts: 4,133
Total Cats: 188
Default

Quote:
Originally Posted by thenuge26 View Post
Does anyone buying their first house?
"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.
fooger03 is offline   Reply With Quote
Old 04-04-2013, 03:22 PM   #14
Elite Member
iTrader: (2)
 
Join Date: Aug 2012
Location: Indianapolis
Posts: 3,325
Total Cats: 235
Default

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.
thenuge26 is offline   Reply With Quote
Old 04-04-2013, 03:35 PM   #15
Junior Member
Thread Starter
 
Join Date: Mar 2013
Location: Houston
Posts: 113
Total Cats: -3
Default

Quote:
Originally Posted by thenuge26 View Post
Does it sound stupid? Yes.


Did I get turned down for <$100k loans with a >700 credit rating? Also yes.
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.
Fathom55 is offline   Reply With Quote
Old 04-04-2013, 03:36 PM   #16
Boost Czar
iTrader: (61)
 
Braineack's Avatar
 
Join Date: May 2005
Location: Chantilly, VA
Posts: 72,900
Total Cats: 1,792
Default

this is what FHA is for.
Braineack is offline   Reply With Quote
Old 04-04-2013, 03:45 PM   #17
mkturbo.com
iTrader: (24)
 
shuiend's Avatar
 
Join Date: May 2006
Location: Charleston SC
Posts: 13,780
Total Cats: 1,106
Default

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.
shuiend is offline   Reply With Quote
Old 04-04-2013, 03:56 PM   #18
Junior Member
Thread Starter
 
Join Date: Mar 2013
Location: Houston
Posts: 113
Total Cats: -3
Default

Quote:
Originally Posted by shuiend View Post
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...
Fathom55 is offline   Reply With Quote
Old 04-04-2013, 04:35 PM   #19
Elite Member
iTrader: (2)
 
Join Date: Sep 2008
Location: Central Florida
Posts: 3,284
Total Cats: 178
Lightbulb

Quote:
Originally Posted by Fathom55 View Post
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.
Zombie bank problems.



Kidding aside, your points are very valid (which you would expect given your background).
Scrappy Jack is offline   Reply With Quote
Old 05-04-2013, 08:24 AM   #20
Elite Member
iTrader: (17)
 
Join Date: Aug 2007
Location: Fort Myers, FL
Posts: 2,791
Total Cats: 130
Default

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.
pdexta is offline   Reply With Quote
 
 
Reply

Related Topics
Thread Thread Starter Forum Replies Last Post
Project Gemini - Turbo Civic on the Cheap Full_Tilt_Boogie Build Threads 59 12-15-2017 09:00 PM
My solution for Oiltemp and Oilpressure input into Megasuirt (MS3) Zaphod MEGAsquirt 41 01-24-2016 01:25 PM
Noob to Miataturbo from MA JxPhan Meet and Greet 3 10-02-2015 03:17 AM
Going back to stock. Need some 1.6 parts. Trent WTB 2 10-01-2015 01:15 PM
Bad head gasket or ? shooterschmidty Engine Performance 8 09-30-2015 11:28 PM


Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off



All times are GMT -4. The time now is 02:03 PM.