Good after noon My friend's
Having read my mentor's Tim Davis blog today where he wrote about whom responsability it is for this mess we are in. Tim assigns some or all responsibility to the consumer.
I agree with him but we cannot exclude the mortgage broker entirely who where supposed to inform their clients about the challenges down the road, and how the loan will preform in a few years from now and not just merely quoting rates, a trade that true mortgage planner's are conforming too.
Furthermore, the banks who shut their doors they all originated Loans which no body in their right mind would lend their own money on.
A little more on that note, I spoke to an account representative today at Bank a. Bank a (as I would like to call them here)was the lender who used to buy all the loans from ABC and bank of Arizona and securitize those loans on the secondary market. When Lehman declined to continue to buy them toward's the end of this market as we know it, thats when ABC and the like shut their doors.
But whats really interesting is, that Bank a is still in business and still originating no doc loans and stated stated loans and still doing most of what they used to do prior to this meltdown and for not so much higher rates. Their philosophy was, we do them but we need to add risk into the equation and they did. they did not dominate the market because they where always more expensive then ABC on the wholesale Level but guess what, they are still around!
Bottom line, Dont trade in your principals and ethics for greed, because greed tends to loose and then you can be left without anything so keep your principles and ethics.
Wow I cant belive I wrote that
Sincerely Yours Joel Silberstein
