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Fed Seizes Fannie & Freddie; Thoughts?

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Re: Fed Seizes Fannie & Freddie; Thoughts?

Postby Yoda » Wed Sep 10, 2008 5:53 pm

Madison wrote:Oh, and a completely unrelated sidenote, you can grill on a balcony in an apartment in Cali? 8-o That's a $2,000 fine here in Texas. Even on a floor level patio you can't use a grill. Gotta be at least 20 feet away from any building at all times or else you get hit with the fine.


On a sidenote.. silly, silly Texans.
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Re: Fed Seizes Fannie & Freddie; Thoughts?

Postby Yoda » Wed Sep 10, 2008 6:02 pm

bigh0rt wrote:Late to the party, but just to chime in. I do feel people have to be held responsible for taking on these mortgages that they cannot afford, however, my brother being in the business, and being one of the people who was selling people these mortgages, I've seen first hand how some of it is done. These guys were making it sound like sweet deals (and they were, and the way the economy was, it was difficult to see what was on the horizon, looming. hindsight is 20/20). Now, that doesn't remove them of fault, but with what these brokers and such were pitching, it really did seem reasonable that these mortgages would be able to be paid off. Again, hindsight is 20/20, and it should be a long while, if ever, before something even remotely of this nature occurs again, but all I'm trying to say is I see why a lot of these people bought into these offers, which were more than affordable at the time, and didn't appear to be skyrocketing in the immediate future, the way they did, especially with the way they were being pitched to them.


But don't you have to at least put some of the blame on those people who actually made these loans? Afterall, they are in the business and should know whether someone will be able to afford the payments if/when the rates adjusted or the market stopped skyrocketing.

For a typical commercial deal that I work on, the loan officer, his boss, loan processor, underwriter, chief credit officer and the bank board typically have to approve/sign off on these deals.

Even for a small residential deal, you still have at least the loan officer, underwriter and whoever is authorized to approve the applicant's credit. Remember, these guys are in the business so they should know right?

What about the FDIC and regulators? How were they just overlooking these loans at the time? These lenders are constantly being audited so in a perfect world, they should be nailing these lenders for making bad loans.

In the end, it is everyone's fault but I still think the bulk of the blame rests on greedy lenders (afterall, if they don't make these loans then they don't make any money) and borrowers. Brokers were there to bring the two parties together. It was a perfect storm.
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Re: Fed Seizes Fannie & Freddie; Thoughts?

Postby Madison » Wed Sep 10, 2008 6:24 pm

Yoda wrote:
Madison wrote:Oh, and a completely unrelated sidenote, you can grill on a balcony in an apartment in Cali? 8-o That's a $2,000 fine here in Texas. Even on a floor level patio you can't use a grill. Gotta be at least 20 feet away from any building at all times or else you get hit with the fine.


On a sidenote.. silly, silly Texans.


:-b

Actually it's for pretty good reason. Very, very few people down here have renter's insurance and we've had quite a few apartment buildings burn to the ground due to some idiot catching the building on fire while grilling (once or twice a week the local news leads off with a story about that). So it is one law I don't argue or fight, because it is a problem, and people are losing everything they own due to something beyond their control. I had renter's insurance when I lived in an apartment (for only around $150 per year, kinda silly not to have it), but there are some things money simply could never replace.
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Re: Fed Seizes Fannie & Freddie; Thoughts?

Postby Yoda » Wed Sep 10, 2008 6:28 pm

Madison wrote:
Yoda wrote:
Madison wrote:Oh, and a completely unrelated sidenote, you can grill on a balcony in an apartment in Cali? 8-o That's a $2,000 fine here in Texas. Even on a floor level patio you can't use a grill. Gotta be at least 20 feet away from any building at all times or else you get hit with the fine.


On a sidenote.. silly, silly Texans.


:-b

Actually it's for pretty good reason. Very, very few people down here have renter's insurance and we've had quite a few apartment buildings burn to the ground due to some idiot catching the building on fire while grilling (once or twice a week the local news leads off with a story about that). So it is one law I don't argue or fight, because it is a problem, and people are losing everything they own. I had renter's insurance when I lived in an apartment (for only around $150 per year, kinda silly not to have it), but there are some things money simply could never replace.


Here in Cali, it's all good. Nevermind the yearly fire storm that burns half the state.
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Re: Fed Seizes Fannie & Freddie; Thoughts?

Postby StlSluggers » Wed Sep 10, 2008 6:34 pm

My first balconied apartment came with a complimentary grill on the patio.
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Re: Fed Seizes Fannie & Freddie; Thoughts?

Postby Madison » Wed Sep 10, 2008 6:36 pm

Yoda wrote:Here in Cali, it's all good. Nevermind the yearly fire storm that burns half the state.


I could never move to Cali. Too expensive for me and I'm not fond of the ground just shaking whenever it feels like it. :-b Every type of insurance known to man is something I'd certainly have to have if I lived there. :-b

Probably a dumb question, but do the majority of people in apartments there carry renter's insurance? If so, I can see why the two states are totally opposite each other on that one. :-)
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Re: Fed Seizes Fannie & Freddie; Thoughts?

Postby Yoda » Wed Sep 10, 2008 7:17 pm

Madison wrote:
Yoda wrote:Here in Cali, it's all good. Nevermind the yearly fire storm that burns half the state.


I could never move to Cali. Too expensive for me and I'm not fond of the ground just shaking whenever it feels like it. :-b Every type of insurance known to man is something I'd certainly have to have if I lived there. :-b

Probably a dumb question, but do the majority of people in apartments there carry renter's insurance? If so, I can see why the two states are totally opposite each other on that one. :-)


Yeah the shakes don't bother me. Neither do the fires except for the dumbasses that start them.

I don't know too many renters but the ones I do know don't have renter's insurance. Is that for personal property or?
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Re: Fed Seizes Fannie & Freddie; Thoughts?

Postby bigh0rt » Wed Sep 10, 2008 7:39 pm

Yoda wrote:
bigh0rt wrote:Late to the party, but just to chime in. I do feel people have to be held responsible for taking on these mortgages that they cannot afford, however, my brother being in the business, and being one of the people who was selling people these mortgages, I've seen first hand how some of it is done. These guys were making it sound like sweet deals (and they were, and the way the economy was, it was difficult to see what was on the horizon, looming. hindsight is 20/20). Now, that doesn't remove them of fault, but with what these brokers and such were pitching, it really did seem reasonable that these mortgages would be able to be paid off. Again, hindsight is 20/20, and it should be a long while, if ever, before something even remotely of this nature occurs again, but all I'm trying to say is I see why a lot of these people bought into these offers, which were more than affordable at the time, and didn't appear to be skyrocketing in the immediate future, the way they did, especially with the way they were being pitched to them.


But don't you have to at least put some of the blame on those people who actually made these loans? Afterall, they are in the business and should know whether someone will be able to afford the payments if/when the rates adjusted or the market stopped skyrocketing.

For a typical commercial deal that I work on, the loan officer, his boss, loan processor, underwriter, chief credit officer and the bank board typically have to approve/sign off on these deals.

Even for a small residential deal, you still have at least the loan officer, underwriter and whoever is authorized to approve the applicant's credit. Remember, these guys are in the business so they should know right?

What about the FDIC and regulators? How were they just overlooking these loans at the time? These lenders are constantly being audited so in a perfect world, they should be nailing these lenders for making bad loans.

In the end, it is everyone's fault but I still think the bulk of the blame rests on greedy lenders (afterall, if they don't make these loans then they don't make any money) and borrowers. Brokers were there to bring the two parties together. It was a perfect storm.

I think the brunt of the blame needs to be put on these people, myself -- agree completely. There was a point when these guys went from being brokers, officers and processors to salesmen, collecting crazy commissions on these things; and once that happened, all bets were off. You can point fingers are irresponsible buyers, but when you think you're going into a bank to get sound advice, and the banker is working on a commission (unbeknown to you) of how much he can get you to borrow, you're just asking for trouble -- and they got it.
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Re: Fed Seizes Fannie & Freddie; Thoughts?

Postby Madison » Wed Sep 10, 2008 9:53 pm

Yoda wrote:I don't know too many renters but the ones I do know don't have renter's insurance. Is that for personal property or?


Renter's can cover pretty much anything. If for example you flood another apartment, your renter's insurance would pay the damages. Protection in case you get robbed, etc. I had it simply to replace all my stuff should some other idiot do something that caused me to lose my stuff (fire, flood, whatever). Of course some things are priceless and not financially worth a nickel to anyone but me, but when it comes to furniture, electronics, clothes, etc, that stuff adds up quick if you have to replace everything you own. And it's not expensive, at least not here. I think my final year of renter's insurance was $147 total for the entire year. More than worth the peace of mind. ;-D
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Re: Fed Seizes Fannie & Freddie; Thoughts?

Postby bigh0rt » Wed Sep 10, 2008 9:54 pm

Madison wrote:
Yoda wrote:I don't know too many renters but the ones I do know don't have renter's insurance. Is that for personal property or?


Renter's can cover pretty much anything. If for example you flood another apartment, your renter's insurance would pay the damages. Protection in case you get robbed, etc. I had it simply to replace all my stuff should some other idiot do something that caused me to lose my stuff (fire, flood, whatever). Of course some things are priceless and not financially worth a nickel to anyone but me, but when it comes to furniture, electronics, clothes, etc, that stuff adds up quick if you have to replace everything you own. And it's not expensive, at least not here. I think my final year of renter's insurance was $147 total for the entire year. More than worth the peace of mind. ;-D

Yep, that is exactly what I have, and I pay $152 a year with Liberty Mutual. More than worth it, heaven forbid something were to ever happen.
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