Subprime Lending

[ForexStrategySecrets]

Not the biggest fan of subprime lending.

[RottweillerRescue44]

While Obama & the Democrats were cashing their big paychecks from FannieMae & FreddieMac, McCain and 18 other REPUBLICAN Senators were loudly predicting this disaster and trying to STOP it.

Their letter, dated May 5, 2006:

tinyurl (dot) com/3q6dc9

(fix the "dot," obviously)

Note that NOT ONE DEMOCRAT signed this letter.

Where was Sen. Obama that day? Running for President, too busy to give a shit.

Democrats pimped these loans to unqualified borrowers, now the chickens came home to roost.

[lasttoknow2]

Now that it will be harder for people to get loans to buy houses they will have to rent, everybody has to live someplace. Now would be a good time to buy rental houses.

[pjacobo]

if you have an interest-only mortgage, and the rate doubles, so does your payment - you the dumbass, and this fellow knows exactly what he's talking about

[ThatMiserableCat]

Thank you 'pjacobo', for letting Mr. Smart Guy 'drodfla' know who the real bonehead is! As HeeersEllery posted 2 yrs. ago, I saw it coming and acted accordingly. And I must say a big thanks to the dirty-bird Real-Estate Speculators, the" Flip That House" crowd for their help in wrecking the US economy.

[drodfla]

This dumbass doesn't know what he's talking about.

1. The payment can't double...there's an interest cap.

2. The prepayment penalty is usually for 2 years which is what the rate is locked in for...and you can even buy it out to not even have a ppp.

3. Of course the interest is higher...if your credit sucks, you're a risk..duh!

4. If your credit was better than average, you wouldn't need a subprime loan and you would get a better rate..dumbass.

This guy's a bonehead!

[ThatMiserableCat]

Now who's the bonehead...you! This guy posted two years ago and was, like me, right on. Now we all suffer.

Bonehead.

[InformedTrades]

great simply explanation and very timely too as it seems that this was posted before all the problems sprung up well done.

[sharonafox1]

It is wonderful you are attempting to educate people using basic and simple English and examples. You can always check out my predatory lending videos on Youtube if it helps any interested party. Keep doing this wonderful work. Your efforts are supporting some of the most vulnerable people in our country. Thank you!

[thisismyname007]

It's sort of like making a payday loan to the unemployed...

[HeeersEllery]

I've been talking about the bubble with friends since early 2003. I was worried enough just with ARMs...prime or not. By 2004 I knew it was going to tank but the lending standards just got looser and looser.

Everybody thought I was crazy...I guess my econ degree came in handy. Sold my house July 2005 and moved back home...saving tons of money now not even having to pay rent.

[Nu7bsRD9]

The truth about the coming hard times due to this debacle needs to be told! Good job!