Creator of subprime loans passes away

It's the quintessential American success story. Create a morally bankrupt product, make multiple millions, get chased by attorney generals, then become ambassador to the Netherlands, with the blessing of the U.S. Senate.

http://latimesblogs.latimes.com/laland/2008/03/ameriquest-foun.html#comments


Rot In Hell, you piece of human garbage.

 

I'd be smiling too if I found out I was going to live in the Netherlands. If Hillary becomes prez, I know a certain recent ex-gov who will seek that gig.

 

Heaven needed a three-bedroom ranch with a low monthly payment even though it has shaky credit.

 

Good career move.

 

Schadenfreude rears its ugly head.

 

Forgive my ignorance, but since I'm so far away from buying a house it'll take a Lewis and Clark expedition to put me on the same continent, but what is a subprime loan?

I know it's been largely blamed for the current downturn in the housing market, but I've never bothered to read up on what exactly it is.

 

A subprime loan is a loan given to an individual that doesn't have very good credit. It is a high risk loan.

 

Minor point, but I think the plural of "attorney general" is "attorneys general."

 

I'll cry on my pillow, tonight.

 

The subprime loan is the reason why our country is teetering on economic collapse.

In the past, if your family made $3,000 per month take home, no one in their right mind would give you a mortgage that cost $1,750 per month. Well, for the past 6-7 years they have been doing just that.

On top of that, after six years or so your $1,750 payment will balloon to $2,500, but you are told by the slimy crooks (subprime mortgage agents) that everything will be fine in six years when your payment goes up. You will just refinance or sell the home at a big profit.

It was all complete BS.

I bought my first home in 2002, and thank God I went to a mortgage agent who I could trust and wouldn't even deal in these subprime loans.

The devil of all of this is that even the wealthy are getting their asses kicked by the subprime. If someone takes home $10,000 per month, they were loading up on $8,000 mortgages. They are bottoming out as well.

No one, rich or poor, is safe from this if you were stupid enough to get a subprime loan.

Also, the amount they were approving you for was getting out of hand. My wife and I only used about 60 percent of what we were approved for, and if we had any new expenses, like a daughter, we would be drowning financially if we used 100 percent of what we were approved for.

Bush should be in jail for what he has done to this country.

 

It's Bush's fault people with shitty credit took out mortgages they couldn't afford? At some point, if people can't afford to pay your Sears Card, people should realize they shouldn't buy a $300K home. Greed took over when property values jumped. The average schmuck thought they could flip a home in a year or two and make money. They gambled and lost.

Actually in today's market, these shitty subprime mortgages should be dropping because the one year Libor has dropped so much in the last 6 months.