DIYbanter - View Single Post - Paulson begins wrapping his gift to FRAUD Street

Smitty Two

In article
,
wrote:

One obvious thing that makes no sense to me is the following. Any of
us who have gotten a normal mortgage know what the process is like.
The lender needs proof of everything from employment, to all assets,
where the down payment is coming from, to even proof of what your rent
has been for the last year. It's like being interrogated. On the
other hand, they make ARM loans based on the borrowers ability to pay
the artificially low introductory teaser rate? And to people with
poor credit scores? Many of these problem mortgages were just that,
set at low intro rates, that were bound to move up several points the
first time they adjusted.

I think a contributing factor was the creation of a new sub-species of
humanoids called "mortgage brokers." I got my first home loan through
one of these sheisters. I provided an endless string of documentation,
but when I went in to sign the papers I found that my finances had been
greatly fictionalized:

I was already a homeowner, had already been a landlord for several years
(this was an investment house) and the 50k I put down, which was more or
less every penny I had at the time, was somehow still in my bank account
as reserve capital.

When I attempted to gently point out that there might be a few
inaccuracies, my mortgage broker said "your loan has been approved, all
you have to do is sign." I signed. So even though this was a traditional
30 yr. fixed rate, fully amortized loan, and one which I could afford, I
shouldn't have qualified for it.

It used to be that you borrowed money directly from a lender. The middle
men are the real criminals in all this, because many of them pretty much
lied to everyone involved on both sides of the transaction, in the name
of the Holy Commission.

(crossposting outside of a.h.r. deleted.)