Wall Street, Mortgage-Backed Securities, Crippling National Debt, Loan Modifications, Obama, Outrageous Corporate Profits, and the worst recession in 70 years!
While I don’t usually discuss economics or politics on my blog, I feel it’s important to share information and understanding about this rather complex situation we’re in as a nation. As a mortgage consultant with the utmost integrity, I’ve bristled upon hearing the entire mess blamed on greedy mortgage brokers who over-populate the profession.
While it’s true that many selfish amoral brokers originated loans for clients they neither counseled nor informed properly about the terms of their loans, they were allowed to do so by lenders who were profiting enormously on these loans.
Lenders were able to make sooooo much money selling the securities (loans) on the secondary market that they were willing to take enormous risk by lowering their loan qualification criteria farther than ever before in history.
What really makes my blood boil (and makes others in my industry furious and frustrated- as you’ll hear in the video below) is that they are getting away with it! The gov’t (i.e.: taxpayers) are sucking up all the downside fallout as the government uses taxpayer monies to bail out these financial institutions. The lenders are actually making enormous profits and giving their CEOs huge salaries and bonuses. Whereas the taxpayers will have this crippling debt for decades- maybe longer depending on how many republican administrations we have.
Two years ago, I predicted that the government would buy the securities from the lenders and later would sell off the securities at a deep discount often to the very same lenders. The tax payers would get stuck with a huge debt and the lenders would be fatter than ever.
The way the government has now structured it totally protects the lenders- the lenders have NO risk and obscene upside potential (profit!). In the meantime, because the lenders are profiting so outrageously from every short sale, they have little incentive (or decency) to cooperate with loan modifications and they make the modification process a living nightmare for the consumer.
Watch this short and informative video for the details that the FDIC doesn’t want you to know: http://www.thinkbigworksmall.com/mypage/player/tbws/23622/1594081
Just a quick message to thank you for your joyful post. Do you know where I could find more on the subject? x
Hi,
My info came from various sources including Barry Habib and TBWS Daily.
Thanks for reading and commenting.
Your comment that appear to blame only the Republicans and show your political bias in my opinion is OUTRIGHT False.
The republican have lost their way … is true but the problem has been with both parties, with the brunt being with the “Progressive” Democratic party … but each party has there own issues with corruption.
One thing is true, we the taxpayer are getting stuck with their corruption and lack of responsiblity and good ethics.