Jul
17th

What is a sub-prime lender and they do?

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Each lender that charges higher interest rates that the rates offered by conventional lenders is a sub-prime lender.

Sub-prime lenders are offering loans to borrowers with weaker credit and loans and certain characteristics that do not conform to Fannie Mae and Freddie Mac criteria.

For example, a bad credit borrower will be one that has less than 620 Fico, and need a loan with high LTV. Sub-prime lenders consider that the borrower qualify for higher rates - 2-3% higher than conventional loans. The wholesale cost sub-prime home loans are justified by the greater risk - for both borrowers and lenders.

Sub-prime loans, also known as paper-B funding, is more expensive because of the increased risk associated with these loans - combined poor credit history, low incomes and high interest rates.
Sub-prime lending sometimes targets minorities

Loans abusive sometimes targets lower income and / or minority borrowers are sometimes also are less educated and have difficulty understanding some more sophisticated mortgage products and features. Some of these loans may carry prepayment penalties and other expensive hidden terms that cause borrowers to default and ultimately lead to exclusion.

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Jul
16th

Mortgage fraud encouraged my sub-prime lenders

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I just had lunch with a loan officer and mentioned that the representatives of sub-prime lenders tend to visit his office and tell loan officers that if a borrower made $ 3000 a month but needs $ 5000 to get the loan that was fine submit $ 5000.

And this was the first sub-lenders representative! The loan officer said it was very common and would have to go after everything and tell people not to listen to representatives. I was shocked at the nerve to the sub-prime industry.

This sub-prime lender, surprise, surprise, is out of business.

I am sitting here thinking about the dilemma of loan officers must have ido across. The borrower wants 100% financing on a home they can not benefit from it… unless they use the income declared, sub-prime loan with inflated earnings, like the sub-main lender representative told them to do .

Will Follow instructions from their client and get what you 100% sub-prime, no doc, liar loan, and make a lot of money yourself?

Or tell the truth?

And if he does tell the truth, you know that just going to go down the street to get the loan dangerous it wants.

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Jul
15th

Bronx politician issues hit list of subprime lenders

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It is the subprime hall of shame - banks and lenders that issued most of the globe with subprime mortgage interest payments, forcing New York homes in foreclosure.

State Senator Jeffrey Klein published a list of 10 lending institutions with the largest number of mortgages in the city of Westchester and Sunday, costing thousands of homes of their savings, their homes and their hopes for the future.

“These, in many cases, are the authors of these subprime loans … people have problems at all,” Klein (D-Bronx, Westchester) said at a press conference on Wall St.

Topping Klein list is Bank Fremont, California, a company based in which saw 330 requests for exclusion of loans approved in the city and Westchester between July 1, 2006, and July 31, 2007.

During this 13 months, 14561 mortgage in connection with the subprime crises have arisen in the city, said Klein.

A Fremont loan was issued to Radames Rosado, 40, and his then pregnant wife, Ana. The couple almost lost his dream home in Throgs Neck, the Bronx.

“Fremont gave us this loan,” said Rosado at the press conference, his 2-year-old son, Adam, in his arms.

Although Rose’s history has a happy ending - who refinanced her home - many others do not.

“I lost all my savings, my pension, everything,” said Sandra Rolan, a staff sergeant with the U.S. Army serving in Iraq.

Desperately trying to cling to his home in the Bronx, Rolan had spent their savings because their monthly mortgage payment doubled to more than $ 4000.

Secondly Klein on the hit list WMC Mortgage is a subsidiary of General Electric, followed by New Century Mortgage Corp., which has gone out of business, and Argent Mortgage, said Klein.

Representatives of banks was unable to reach or had no comment yesterday.

Klein counted requests for exclusion in the two zip codes in each of the five counties of Westchester and most mortgages.

Backed by other members of the Senate’s democratic leadership, Klein chastised Senate Republicans for not passing legislation to protect people’s homes.

They praised a bank on the list, Countrywide Financial, which is refinancing $ 16 billion in loans instead of excluding them.

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