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I disagree. She got a loan secured by an asset. If I own $100k in stock and I want to get a $80k loan secured against my stocks, let me. If I can buy a $550k p

I disagree. She got a loan secured by an asset. If I own $100k in stock and I want to get a $80k loan secured against my stocks, let me. If I can buy a $550k property for $500k (with no cash down), with the lender not risking much when it gets repossessed and sold, let me. If the collateral is there, it's fine.

wil421 8y ago
She got a 600k loan as a student based on bank statements which is insane. She also took it an ARM loan at 6%. In 5 years it’s very possible it could become unaffordable. Not a good decision either. In this case it may be a good deal for both parties. What about the other people? The atricle mentions these loans grew by 25% in 2018.
- jlarocco 8y ago
  > In this case it may be a good deal for both parties. What about the other people? The atricle mentions these loans grew by 25% in 2018. But you're speculating. If it was a good deal in this case, what makes you think it's not in other cases? Can you point to a specific case where you think it's a bad deal? As long as we don't bail them out again, I don't really care what crazy deals banks and bank customers come up with.
  - deleted 8y ago
    [deleted]
  - wil421 8y ago
    Yes I think it is a bad financial decision for a nursing student to take out a 600k loan. It’s almost predatory. I could care less if it’s a good deal for the banks.
    - throwawaymath 8y ago
      You keep talking about the person being a nursing student, but you keep ignoring what people are telling you about the asset. It's not an unsecured loan. It's backed by collateral. What is your specific problem? Liquidity?
      - deleted 8y ago
        [deleted]
- charlesdm 8y ago
  She could get a $600k loan without statements, if she had an asset worth $700k. Why does, and more importantly should, a lender care?
- dragonwriter 8y ago
  > She got a 600k loan as a student based on bank statements which is insane. She got a 600K loan against a property she already owned a substantial share of (not a purchase money loan with nothing down) as a working home health aide who is also a nursing student. > In 5 years it’s very possible it could become unaffordable. In 5 years it's quite likely that higher income and lower loan to asset value will let her refinance it down, too. > What about the other people? The atricle mentions these loans grew by 25% in 2018. Subprime mortgages aren't generally a problem on their own, absent the kind of incentives to misrepresent their quality for sales of securities that existed in the last housing crisis. To the extent that hasn't been corrected, that's a problem, but let's not target subprime lending as the problem (heck, in the last crisis, a lot of the problem loans weren't even subprime.)

wil421 8y ago

She got a 600k loan as a student based on bank statements which is insane. She also took it an ARM loan at 6%. In 5 years it’s very possible it could become unaffordable. Not a good decision either. In this case it may be a good deal for both parties. What about the other people? The atricle mentions these loans grew by 25% in 2018.

jlarocco 8y ago
> In this case it may be a good deal for both parties. What about the other people? The atricle mentions these loans grew by 25% in 2018. But you're speculating. If it was a good deal in this case, what makes you think it's not in other cases? Can you point to a specific case where you think it's a bad deal? As long as we don't bail them out again, I don't really care what crazy deals banks and bank customers come up with.
- deleted 8y ago
  [deleted]
- wil421 8y ago
  Yes I think it is a bad financial decision for a nursing student to take out a 600k loan. It’s almost predatory. I could care less if it’s a good deal for the banks.
  - throwawaymath 8y ago
    You keep talking about the person being a nursing student, but you keep ignoring what people are telling you about the asset. It's not an unsecured loan. It's backed by collateral. What is your specific problem? Liquidity?
    - deleted 8y ago
      [deleted]
charlesdm 8y ago
She could get a $600k loan without statements, if she had an asset worth $700k. Why does, and more importantly should, a lender care?
dragonwriter 8y ago
> She got a 600k loan as a student based on bank statements which is insane. She got a 600K loan against a property she already owned a substantial share of (not a purchase money loan with nothing down) as a working home health aide who is also a nursing student. > In 5 years it’s very possible it could become unaffordable. In 5 years it's quite likely that higher income and lower loan to asset value will let her refinance it down, too. > What about the other people? The atricle mentions these loans grew by 25% in 2018. Subprime mortgages aren't generally a problem on their own, absent the kind of incentives to misrepresent their quality for sales of securities that existed in the last housing crisis. To the extent that hasn't been corrected, that's a problem, but let's not target subprime lending as the problem (heck, in the last crisis, a lot of the problem loans weren't even subprime.)