Comments on: What mortgage brokers don’t tell you: Hidden penalties abound http://blogs.reuters.com/reuters-wealth/2011/01/17/what-mortgage-brokers-dont-tell-you-hidden-penalties-abound/ Fri, 05 Dec 2014 11:27:18 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Condorcet http://blogs.reuters.com/reuters-wealth/2011/01/17/what-mortgage-brokers-dont-tell-you-hidden-penalties-abound/comment-page-1/#comment-2367 Wed, 19 Jan 2011 22:21:43 +0000 http://blogs.reuters.com/prism-money/?p=5738#comment-2367 I like the part where I make a deposit, the bank can loan multiples of that deposit and call those loans “assets” and I can withdraw my money immediately. Banking doesn’t seem very risky to me.
Condorcet

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By: Tamooj http://blogs.reuters.com/reuters-wealth/2011/01/17/what-mortgage-brokers-dont-tell-you-hidden-penalties-abound/comment-page-1/#comment-2362 Wed, 19 Jan 2011 15:53:29 +0000 http://blogs.reuters.com/prism-money/?p=5738#comment-2362 Wait a second; Isn’t FICO a private scoring system, run by seedy-but-very-wealthy parasitic companies with little or no oversight or consumer protections? Doesn’t *everyone* have some kind of stupid error on their credit report? Why would we trust these people at all?
Why the heck is my government relying on a set of flawed, made-up, semi-secret rules created by a private for-profit business consortium in order to determine anything at all about anything?

I’d be fine with a fully open system, subject to public oversight (like telephone rate tables), but currently these private companies have a business model that depends on them hiding information until you pay for it, and they are the only ones who get to arbitrarily set the heuristics and scores… and that’s just a recipe for all kinds of evil.

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By: RightGunner http://blogs.reuters.com/reuters-wealth/2011/01/17/what-mortgage-brokers-dont-tell-you-hidden-penalties-abound/comment-page-1/#comment-2350 Wed, 19 Jan 2011 01:38:41 +0000 http://blogs.reuters.com/prism-money/?p=5738#comment-2350 Affordable housing existed for the pioneers. Land was granted to the pioneers in areas where the Government decided it wanted people to settle in. After acquiring a land grant by traveling to the area and staking a claim, it only required the home-owner-to-be to acquire an ax and expend a lot of labor to house himself and his family. If an equitable way could be found, the same could be offered today by taking small portions of the National Forests and granting ownership to plots that must be built on within a period of time and lived on for a certain period of time.

The “right” to Government funding houses to all who do not, or can not acquire a down payment sufficient to convince private investors to take the risk to loan them the rest of the money, is a fictitious right. It is a scam produced by political parties intent on selling votes paid for with other peoples money.

The political party that began the scam, started slowly but eventually perverted the entire mortgage market and caused the crash that broke the banks. Following that injustice, both parties tried to hide the problem by creating money that no one had earned, and using it to prop up the banks that had tried to profit from the artificial gravy train. The bankers knew what they were doing and should have taken the losses. Instead both political parties solved the problem by transferring the cost to the backs of the taxpayers.

And those who bought into debt they could not afford, should be surveyed to see which school system gave them their high school education. Apparently the lack of a normal high school education kept them from understanding the biggest financial transaction they will ever make in their lifetime. Perhaps the acquisition of that knowledge should be added to the criteria to graduate.

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By: iflydaplanes http://blogs.reuters.com/reuters-wealth/2011/01/17/what-mortgage-brokers-dont-tell-you-hidden-penalties-abound/comment-page-1/#comment-2344 Tue, 18 Jan 2011 20:42:58 +0000 http://blogs.reuters.com/prism-money/?p=5738#comment-2344 @deerecub1977, would you like to explain that logic further?

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By: deerecub1977 http://blogs.reuters.com/reuters-wealth/2011/01/17/what-mortgage-brokers-dont-tell-you-hidden-penalties-abound/comment-page-1/#comment-2342 Tue, 18 Jan 2011 19:34:35 +0000 http://blogs.reuters.com/prism-money/?p=5738#comment-2342 when you cant afford a place to call your own,we as a people will lose more liberties

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By: Soothsayer http://blogs.reuters.com/reuters-wealth/2011/01/17/what-mortgage-brokers-dont-tell-you-hidden-penalties-abound/comment-page-1/#comment-2309 Tue, 18 Jan 2011 18:56:12 +0000 http://blogs.reuters.com/prism-money/?p=5738#comment-2309 This is like telling the 6th grade basketball camp that those who don’t have a 42-inch vertical leap will run laps after practice. Not to mention the suggestion that sound lending principles did not exist five years ago. Blather. Call it what it was: recklessness, negligence, outright fraud, and thievery. More proof that now, more than ever, we should forego traditional banks.

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By: Adam_S http://blogs.reuters.com/reuters-wealth/2011/01/17/what-mortgage-brokers-dont-tell-you-hidden-penalties-abound/comment-page-1/#comment-2288 Tue, 18 Jan 2011 17:57:43 +0000 http://blogs.reuters.com/prism-money/?p=5738#comment-2288 Banks don’t like risk, so the riskier the loan (IE the further away from a traditional, fixed interest rate, loan size of 80% of home value or less, etc) will result in a higher rate. As will things like cash out, lower credit scores, mortgaging a home you don’t actually live in, non-traditional (IE non stickbuilt) home types, etc.

I’m sure it’s not obvious to everyone, but it is sometimes surprising, as a former mortgage industry employee, how little people actually know about the mechanics of the largest investment the majority of Americans will ever have. I think the problem is that just before the peak of the housing boom it was almost accepted that everyone in America had “the right” to own a home, when in reality there are plenty of people that don’t, and shouldn’t.

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