Ameriquest was not the root of all evil. Fannie Mae/Freddie Mac and the DEREGULATION of the market by Clinton was the problem!
I did mortgages from '91-'07. I started in the subprime market and moved shortly thereafter to conventional loans.
The downfall of things started when we went to credit scoring and got rid of human beings in the office that were underwriters. It was when Automated
underwriting became king DU/LP (desktop underwriter www.efanniemae.com...
Fannie mae and Loan Prospeter
As long as you had what DU/LP wanted as far as documentation and they approved it, it went. Both were heavily weighted on Credit scores and reserves.
Things like 401k counted as reserves. Ratios of yesteryear did not apply like when humans underwrote loans. The computer did it all. I did many
loans with 100% back end ratios, it was APPROVED with an accept from DU/LP though. So, it went
I NEVER EVER pushed, falisfied, manipulated or did anything to get a loan through. I many times would try and tell people that they were really buying
more than they could afford, if their situation changed, they would be in trouble.
It was PEOPLE who wanted more than they could afford. People who would lie. People were also at fault here. Not just the mortgage giants. It was
greed and opportunity on all sides. As far as "preying" upon elderly and minorities, I can tell you for a fact minorities got a better shake at
getting a loan. The numbers were needed to keep banks in compliance. I could get absolute crap past a human underwriter in the old days if it was a
black family or hispanic. They HAD to meet minimum numbers of minorities. Fair? No, not to anyone.
Back to the people though. The ones with bad credit, shaky job histories had to go b/c paper. IF you do not pay your bills on time why should you
get a low rate? You are high risk! HELLO? You don't pay your bills! Cry me a river but, facts are facts. The ones I always felt the worst for were
the divorcee's who's spouse had ruined their credit. I always thought that sucked. Or someone who truly got ill and couldn't work. Which, was much
I always tried to help everyone who walked through my door. I never tried to stick it to someone. I really wanted to see them in the best mortgage
and best home they could get.
To blame this on McCain and Bush is just propaganda. This is a direct result of deregulation and GREED on all sides. We were so busy in the early
'00's you couldn't get an appt. Serioiusly. Everyone was making money by just having their doors open.
It is completely different now. It is hard to get loans now. Banks don't want to lend money on cars nor on anything.
This did not have to happen. Credit scoring is a crock. Not using humans as real underwriters is a crock. I saw this coming, but unfortunately not
to this degree.
There were two clients that stood out to me. Two that I remember and know what has happened. Both were a little shady, both were borrowing waaaaay
more than they could handle. one is divorced and foreclosed the house(should never had gotten the loan) and the other bankrupted, but, was able to
keep the home. As a person looking at the file, I knew that was a high probability. The processors knew it was going to happen. These were
conventional loans though and they went right on through DU!
Be mad at the real problem.
oh and wutone... You had the right to get your documents early and read them all before even getting to closing. I requested that a few times for
what title companies called "readers". Many people don't care, don't understand and just wanted it closed. You also had to schedule out long
enough to get the papers ready days before closing.
Again, this goes down to personal responsibility. Quit crying if you don't do your homework and don't read something. No one can force you to sign
and you can get up and walk away. I have seen it happen.
[edit on 9/27/2008 by llpoolej]