About Subprime Mortgage Leads [mortgagegoalrates.blogspot.com]
Question by Hi "The Hater" Lopez: What lead to the subprime mortgage collapse? The FHA was getting it's ass handed to them by subprime lenders. They went from a 60% market share to a 5% market share in a matter of 2 years. Instead of laying off employees, they just sat there. Then, in a two month span, the federal government changed bankruptcy laws, made another law to increase minimum payments on credit cards, and raised interest rates. People who were doing just fine saw their ARMS jump, and there monthly debt explode. Then, the government "investigated" the top 3 subprime lenders, causing their lines of credit to dry up, because it was based off stock prices. Obviously an investigation is going to cause those to drop. The fallout? The FHA now holds a 75% market share. Property values have dropped, because demand has dried up because there aren't many people that can now afford a house, causing A paper lenders to go belly up. The "great" recession has caused millions to "need" government assistance to be extended. Wonder who they are going to vote for ? Go ahead and keep blaming the "greedy banks and CEOS". The FHA(government run) is now the leading mortgage backer, and politicians are being voted for because they will extend benefits, irregardless of their other policies. Biggest scam ever. Too bad both sides are blaming the bankers. Fannie and Freddy didn't lend to people that couldn't afford it. They were always A paper. The only people I ever saw with "bad" credit get approved for a home loan through them had liquid assets that would cover their mortgage for more than a year. Most of the people that defaulted on a Fannie or Freddy loan either did so because of a divorce, sickness, lost their job, or they chose to because their home value dropped significantly. I would guess 85% or more of their defaults fell into this category. The rest would have been from ARMs shooting up. Best answer for What lead to the subprime mortgage collapse?:
Answer by General Lee
bush and his cronies fanny mae and freddie mac
Answer by Flags of Our Fathers
Liberal democrats forcing Fannie and Freddie into loaning to people who could not afford their mortgages in the name of "equality".
Answer by The,,Comma,, Lady,,,,,
All I know is,,,,,it happened after the democrats took control of congress in 2006 and put Barney Frank as head of banking,,,,,,,,,,,,,,,,,,,,,,,,,,,
Answer by GOBPsucks
Unregulated Wall Street bankster throwing hundreds of billions of dollars at unregulated private mortgage companies to write SUBPRIME LIAR LOANS which caused a huge house of cards.
Answer by Jimmbbo
Fannie, Freddie, ACORN and The Community Reinvestment Act The CRA and ACORN forced banks to make loans to people who NEVER could pay the loans back... the loans were BACKED by Fannie/Freddie... 'guaranteed by the government".. WHAT COULD GO WRONG? NO CRA + NO ACORN + NO FANNIE/FREDDIE = NO CRISIS AFTER they were FORCED to make the loans, the banks tried to make money in a BAD situation... their hands are not clean, and there is plenty of responsibility for their actions AFTER THE FACT, BUT the bottom line is NO CRA et. al. = NO CRISIS Libs SCREAM about the post loan mess, but fail to recognize that if the loans WEREN'T MADE, there would be NO crisis.
Answer by RockIt
From a home buyer's perspective: Easy money made available to people who never had a chance on earth of ever being able to meet their mortgage obligations.
Answer by Britney M
I think the reason we have so many problems is because people need to stop blaming officials and government and presidents instead of blaming themselves. If you can't afford to get the loan or if you can't afford to put all of those purchases on your credit cards, then just say no to the loan and walk away! Some people do fall upon hard times due to no fault of their own, but that is more of the exception than the rule. The collapse happened, sure because banks lended out too much money to people who had no business receiving it, but also because knowing they could possibly not afford a house or a new car, ect. they got it anyway and landed themselves in trouble.
Answer by SHIRAZZ
carter, Clinton, Franks, Dodd, and 0bama
Answer by JGreen
Not Republicans. Not Democrats. Not GOP tards. Not Libtards. Greedy corporations. Listen to this This American Life episode if you care at all about being informed (which, I've noticed, does not include many of you on here..). It shows a very comprehensive, non-partisan view of the situation of the last few years. Edit: Two downvotes. I cannot figure out why. I didn't even post my opinion, I simply asked people to get the facts.
Answer by La Migra
Thats right everyone was bamboozled, it started with clinton
Answer by gws35
The actual facts are, most of the subprime mortgage defaulters were NOT poor people. They were wealthy real estate specualtors who were using subprime mortgages to qualify for more loans, so they could buy more properties to "flip." When the real estate bubble burst, they had little or no money in the properties because of the low down payment requirement, so they just walked away and wrote off the properties as bad investments. This caused prices to plummet, which flooded the market with bargain priced houses. But ordinary people couldn't benefit from the low prices, because lending was shut down. So THE SAME wealthy speculators swooped in and paid cash for these distressed properties. THEY ARE THE ONES WHO MADE THEM DISTRESSED. Then they profited from gaming the system. No all they have to do is start the next bubble, then they will sell off their properties for huge profits. This is how the wealthy fat cats manipulate the system for their own profits. And the Democrats STILL refuse to reform Fannie Mae and Freddie Mac to stop these abuses from happening again. EDIT: Oh, well if everybody else is posting YouTube videos, I better post mine: http://www.youtube.com/watch?v=_MGT_cSi7Rs Shocking Video Unearthed Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis http://www.youtube.com/watch?v=cMnSp4qEXNM&feature=related Timeline shows Bush, McCain warning Dems of financial and housing crisis; meltdown http://www.youtube.com/watch?v=lFwv0FgtebI Bill Clinton "democrats at fault for Fannie & Freddie
Answer by Mr.
Banks running the derivitives market against their own risky loan products. Those sub prime loans should never have been allowed in the first place. There was a time when you simply couldn't get a fixed rate loand between 2000-2006, because the banks were all jumping into the sub prime Ponzi scheme. They had no reason to give a fair loan to anyone, because there was no regulation that prevented them from taking advantage of consumers. A lot of people thought....well I take this subprime loan for now, then refinance into a standard fixed rate after my credit improves from making my payments on time. As the bottom fell out, the homes were underwater and so were the investment assets that were tied to them. The greed of the banking industry, combined with the greed of wallstreet, led to the biggest over valuation of lending products and tangible assets in our nations history. Tell me...wouldn't it be nice if you could take your credit card bill, and bundle it with your neighbors credit card bill...and then sell it as a product to investors ? Doesn't make much sense does it ?...then WHY is it even possible ?
If your credit isn't the best, you might be familiar with sub-prime loans: they're the kind with a high rate for people with low credit...
mortgagegoalrates.blogspot.com SubPrime Mortgage Blues
Subprime mortgage leads are very important for mortgage brokers especially in current economic downturn. Due to recession, there are millions of people who are suffering from bad credit due to some reason or other. Since their credit history is no so good now, these people are not eligible for normal mortgage loans. Therefore, they are called as sub prime customers or non prime customers.
A prospect can be a sub prime customer due to various reasons. He could have been laid of from the employer or maybe he is a young adult who hasn't yet got a chance to make his credit history. Then there are people who have problems with bankruptcies, liens, judgments etc. Sometimes, all they need is a second chance to repair their credit history and a sub prime mortgage loan may be the best option available to them.
The sub prime lead or pre-foreclosure lead is usually a person which is desperate for a second chance to make up his credit.
Since there is huge number of people who fit in this category, sub prime mortgage brokers have a good chance of making money. And the good thing about sub prime lending is that brokers get a good amount as commission when the lead converts into a customer.Therefore, it is important for the sub prime mortgage lead broker to make sure that when he gets a good lead, he is able to convert him to a customer. There are a few things which he should be aware of while working with sub prime customers. Firstly, he should target the customers. Cold calling will probably not work well. Only go after verified and qualified customers. Time is too precious to chase unverified leads. Be visible in the market place using either a website or through physical appearances in trade shows, association gatherings etc.
Lastly, make sure that all actions are done within legal boundaries. You have to honor direct mail ethics, do not call registry, do not mail registry etc to avoid any unnecessary legal hassles. You don't want to be one of those sub prime mortgage fraud cases. Recommend About Subprime Mortgage Leads Articles
