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Conversely I remain surprised to this day that several hundred execs didn't end up with multi-decade long prison sentences for bricking the global economy with
by forgetfreeman 2y ago
Conversely I remain surprised to this day that several hundred execs didn't end up with multi-decade long prison sentences for bricking the global economy with this bullshit.
- refurb 2y agoI’ll tell you why - because the government promoted it. Fannie and Freddie were complicit.
- scarface_74 2y agoThis is another widespread misconception. The mortgages that got the economy in trouble were the no-doc, no income verification type mortgages - ie “non conforming”. By definition, a non conforming loan isn’t backed by Fannie and Freddie. I had multiple non conforming loans I got before the crash. Yes they ended up just like you suspect.
- forgetfreeman 2y agoI have news for you... Source: worked briefly in mortgage underwriting before the crash.
- scarface_74 2y agoAre you denying the fact that a “non conforming loan” by definition means it isn’t eligible for Freddie and Fannie backing? I’ve had 5 first mortgages in my lifetime and only one was “conforming”. My latest one was a unit in a condotel where I live the majority of the year. No government institution would ever back and no income verification loan on a mixed use commercial/personal secondary home.
- forgetfreeman 2y agoI'm reporting observed reality homeboy. I watched thousands of loans a week get pumped through the system with everything from income verification fields left blank to literally fraudulent (as in the loan officer got tech support on the phone to help them generate random numbers) information get pushed through with zero pushback. A point for you to consider: "non conforming loan" is only a meaningful phrase when the criteria for non conforming loans is actually being verified.
- scarface_74 2y agoYes. But how many of those were “conforming loans” that were officially backed by Fannie Mae
- refurb 2y agoAfter Sept. 1, Freddie will no longer invest in subprime mortgages that have a "high likelihood" of payment shock and foreclosure, the company announced on Tuesday. https://www.reuters.com/article/idUSN27376399/ https://www.reuters.com/article/idUSN27376399/
- refurb 2y agoThen why did they need a quarter trillion dollar bail out? https://en.wikipedia.org/wiki/Federal_takeover_of_Fannie_Mae_and_Freddie_Mac https://en.wikipedia.org/wiki/Federal_takeover_of_Fannie_Mae... This is a delicious ironic quote from a from 2007 article. After Sept. 1, Freddie will no longer invest in subprime mortgages that have a "high likelihood" of payment shock and foreclosure, the company announced on Tuesday. https://www.reuters.com/article/idUSN27376399/ https://www.reuters.com/article/idUSN27376399/
- hkt 2y agoWhat bothers me is that in various european countries - the UK, in my case - right wingers who created the mortgage market in the 1980s successfully pinned the global financial crisis on politicians.
- forgetfreeman 2y agoThere's a case to be made there if you assume one of government's responsibilities is to keep the financial industry from blowing up the planet.
- Joel_Mckay 2y agoI haven't really thought about the effectiveness of blame given the scope of the issues. https://en.wikipedia.org/wiki/The_Scorpion_and_the_Frog https://en.wikipedia.org/wiki/The_Scorpion_and_the_Frog It is an interesting backdrop of power that politics play out upon though. =3