I've been reading lately about how the Feds are cracking down on mortgage lenders and giving them even harsher rules to follow concerning mortgage loans, especially sub-prime mortgages. I was in the mortgage business for over 15 years. Trust me, I know there are plenty of shady Loan Officers and Lenders that were and still are out there. There are two things that bother me about how all of this is being played out in the media and by government officials.
One, there has been absolutely NO talk of the personal responsibility of the consumer. I know for a fact that when someone wants a house, that's all they want to think about. I tried over and over to convince customers to fix their credit and wait a year to get a loan. They didn't want to hear about it. Then, I would tell them you have two years to clean up your credit and refinance before your rate goes WAY up. Did they follow my instructions? Absolutely not. Now all of them are whining about "I was taken advantage of!!!". Whatever. I believe very few were scammed. The majority of them just wanted what they wanted when they wanted it. Also, if you have a loan to extend credit to the home buyer and you don't offer it to them because it is risky, you could be at risk of violating the Fair Housing Act. It's a no win situation for the good loan officers and lenders.
Second, what about credit card companies?? This is what I consider to be the REAL predatory lenders in this country. Credit card companies must have one hell of a lobby because I don't ever hear anything about regulating them for their flat out fraudulent activities....
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6 comments:
That ain't my credic!
But who wants to take responsibility for their own actions...someone else always has to be at fault...
The general population loves to play dumb, if they stand to gain from it. Every other commercial I hear on the radio or see on TV is for debt relief, or get out of debt solutions. It never occurs to people to stop spending money they don't have. If you make $50k, live the $50k lifestyle and be happy with it, don't try to live the $200k lifestyle.
A lot of people here in Atlanta bought bigger houses when the rates were low, and they did everything they could to get into them, even if it meant taking financially risky options... now those folks are stuck with house payments they can't afford. There are a lot of houses in the high end market here being foreclosed on as a result.
personal responsibility is a thing of the past in this USA. everybody wants to blame somebody (can anyone say tort?)
kw
I agree that certain people don't want to take responsibility for their actions. But it is also true that certain lobbyists want to make certain the employers don't take responsibility for their actions. Can we say tort reform in Texas?
How do you tell someone, "I know the doctor left a sponge inside of you and removed the wrong organ while operating intoxicated and that your life will never be the same, you've lost your job, you've lost your house, and you owe $500,000 in medical expenses, but ... uh, your damages are capped at $250,000 ... but thanks for playing the game of life ... better luck next time ... wow, your doctor sure has a nice Porsche ... maybe if you believe in reincarnaiton you can come back as him" !?!
No need to reply with "the other side of the story." I'm well aware. I'm just saying that tort reform is great until you're the one with a cause of action that is now statutorily defunct because some lobbyist bought your elected representative one too many cocktails.
your example would be a worthy case. however, many if not most lawsuits are frivolous (Macdonald's coffee too hot, man suing dry cleaner thousands for loosing his pants) and the list goes on.
your extreme example is just that, extreme. it does happen, but is not common. my examples show what happens almost daily.
kw
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