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View Full Version : ANOTHER Subprime Disaster - guess who loses and suffers the most?



Dachsie
28th April 2017, 08:33 AM
A little comic relief when I heard jsnip4 say all you have to do to get a home loan when you have rotten credit is to say you will take a "government financial management class." And the absurdity that people with almost no income and no job (NINJA) can just lie and actually get a better interest rate than well qualified people with good income and credit rating.

As in 2008, the people losing their jobs and being sent in to poverty are tellers and low-level staff, not the fat cat investment bankers with their huge bonuses and crooked Wall Street wheeling and dealing.

As for predatory lending and all that jazz, fraudulent and irresponsible behavior is REWARDED, so is repeated.

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https://www.youtube.com/watch?v=gpGrMP9vwRk


REALIST NEWS - Bank Of America Firing Thousands & Subprime Mortgages Are Back
jsnip4

Published on Jun 17, 2016

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http://www.zerohedge.com/news/2016-06-15/bank-america-set-fire-8000-banker-layoffs-accelerate

Bank Of America Set To Fire 8,000 As Banker Layoffs Accelerate

by Tyler Durden
Jun 15, 2016 1:45 PM


A few months ago we pointed out that mass layoffs were coming for bankers due to declining revenues and more difficult market conditions, and now we're seeing the first major wave of that come to fruition.

Bank of America has announced that it will fire as many as 8,000 employees within its consumer division the FT reports.The core reason given for the headcount reduction in this instance is that digital banking is picking up the pace, and has reduced the need for "back office staff" and bank tellers.

This is a trend that BofA highlighted in its In its Q1 earnings press release, as the bank showed that mobile banking users had shot up 15% y/y.

The bank has already slashed headcount by more than 10,000 in 2015, and has cut almost 40,000 from its consumer division alone since 2009 (bringing the total at the end of Q1 to 68,400). The layoffs are in line with what has been happening to its retail branch count, which has fallen by about 1,400 over the past seven years. Thong Nguyen, president of retail banking told a conference in New York this week that the numbers would "probably go down to the low 60s", implying as many as 8,000 layoffs are on the horizon..."
SNIP
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http://www.zerohedge.com/news/2016-06-15/subprime-mortgage-back-its-2008-all-over-again

The Subprime Mortgage Is Back: It's 2008 All Over Again!

by Tyler Durden
Jun 15, 2016 1:25 PM


Submitted by Simon Black via SovereignMan.com,

Apparently the biggest banks in the US didn’t learn their lesson the first time around...

Because a few days ago, Wells Fargo, Bank of America, and many of the usual suspects made a stunning announcement that they would start making crappy subprime loans once again!

I’m sure you remember how this all blew up back in 2008.

Banks spent years making the most insane loans imaginable, giving no-money-down mortgages to people with bad credit, and intentionally doing almost zero due diligence on their borrowers.

With the infamous “stated income” loans, a borrower could qualify for a loan by simply writing down his/her income on the loan application, without having to show any proof whatsoever.

Fraud was rampant. If you wanted to qualify for a $500,000 mortgage, all you had to do was tell your banker that you made $1 million per year. Simple. They didn’t ask, and you didn’t have to prove it.

Fast forward eight years and the banks are dusting off the old playbook once again.

Here’s the skinny: through these special new loan programs, borrowers are able to obtain a mortgage with just 3% down.

Now, 3% isn’t as magical as 0% down, but just wait ‘til you hear the rest.

At Wells Fargo, borrowers who have almost no savings for a down payment can actually qualify for a LOWER interest rate as long as you go to some silly government-sponsored personal finance class.

I looked at the interest rates: today, Wells Fargo is offering the exact same interest rate of 3.75% on a 30-year fixed rate, whether you have bad credit and put down 3%, or have great credit and put down 30%.

But if you put down 3% and take the government’s personal finance class, they’ll shave an eighth of a percent off the interest rate.

In other words, if you are a creditworthy borrower with ample savings and a hefty down payment, you will actually end up getting penalized with a HIGHER interest rate.

The banks have also drastically lowered their credit guidelines as well… so if you have bad credit, or difficulty demonstrating any credit at all, they’re now willing to accept documentation from “nontraditional sources”.

In its heroic effort to lead this gaggle of madness, Bank of America’s subprime loan program actually requires you to prove that your income is below-average in order to qualify.

Think about that again: this bank is making home loans with just 3% down (because, of course, housing prices always go up) to borrowers with bad credit who MUST PROVE that their income is below average.

[As an aside, it’s amazing to see banks actively competing for consumers with bad credit and minimal savings… apparently this market of subprime borrowers is extremely large, another depressing sign of how rapidly the American Middle Class is vanishing.]

Now, here’s the craziest part: the US government is in on the scam.

The federal housing agencies, specifically Fannie Mae, are all set up to buy these subprime loans from the banks.

Wells Fargo even puts this on its website: “Wells Fargo will service the loans, but Fannie Mae will buy them.” Hilarious.

They might as well say, “Wells Fargo will make the profit, but the taxpayer will assume the risk.”

Because that’s precisely what happens.

The banks rake in fees when they close the loan, then book another small profit when they flip the loan to the government.

This essentially takes the risk off the shoulders of the banks and puts it right onto the shoulders of where it always ends up: you. The consumer. The depositor. The TAXPAYER.

You would be forgiven for mistaking these loan programs as a sign of dementia… because ALL the parties involved are wading right back into the same gigantic, shark-infested ocean of risk that nearly brought down the financial system in 2008.

Except last time around the US government ‘only’ had a debt level of $9 trillion. Today it’s more than double that amount at $19.2 trillion, well over 100% of GDP.

In 2008 the Federal Reserve actually had the capacity to rapidly expand its balance sheet and slash interest rates.

Today interest rates are barely above zero, and the Fed is technically insolvent.

Back in 2008 they were at least able to -just barely- prevent an all-out collapse.

This time around the government, central bank, and FDIC are all out of ammunition to fight another crisis. The math is pretty simple.

Look, this isn’t any cause for alarm or panic. No one makes good decisions when they’re emotional.

But it is important to look at objective data and recognize that the colossal stupidity in the banking system never ends.

So ask yourself, rationally, is it worth tying up 100% of your savings in a banking system that routinely gambles away your deposits with such wanton irresponsibility…

… especially when they’re only paying you 0.1% interest anyhow. What’s the point?

There are so many other options available to store your wealth. Physical cash. Precious metals. Conservative foreign banks located in solvent jurisdictions with minimal debt.

You can generate safe returns through peer-to-peer arrangements, earning up as much as 12% on secured loans.

(In comparison, your savings account is nothing more than an unsecured loan you make to your banker, for which you are paid 0.1%…) "

SNIP

a comment

Antifaschistische NoDebt Jun 15, 2016 2:03 PM

playbook.

1. find a "buddy" who owns a 300k home.

2. agree to buy it for $400k. (May need to bribe the RE appraiser to allow a mortgage on a home at a price $100K over market.)

3. have "buddy" split the $100k profit with you by giving you 50k in cash after signing. (note: do not deposit the $50k in a bank)

4. make a few payments, and then give the keys back to the bank. (Dachsie might add, after making a few payments, go ahead and live in the house for a year of two without making payments and if they can never show you the deed or who owns the property currently, that is if they do a replay of a MERS-like debacle of 2008, maybe even work out a settlement in some (judicial) states to get back the payments you did make - an option to consider. Also buy as rural as possible on bigger piece of land - maybe even get an agriculture exemption from property tax on your property.)

5. buy 40 ounces of gold.




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a few more comments


rlouis's picture
rlouis Jun 15, 2016 1:42 PM

Section 8 housing vouchers can be used to purchase a home, but it requires completion of an approved consumer education course.

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swmnguy's picture
swmnguy rejected Jun 15, 2016 3:57 PM

Where is an average new home $150,000?

The lack of people with even $400 at hand goes far to explain why bankers were interested in subprime lending in the first place; because they've already lent all the money qualified borrowers are willing to borrow. The only way the banks can generate any money velocity is by making more and more risky loans, but they can't price them correctly or the borrowers won't take them. Fortunately for them, they bought control of government policy, so they can make it so they can lend the imaginary money from the Fed, they can keep all the carrying charges, and the goverment will buy all the debt from them, so the banks have no skin in the game whatsoever.
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crimethink
28th April 2017, 10:03 AM
Section 8 housing vouchers can be used to purchase a home, but it requires completion of an approved consumer education course.

https://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/programs/hcv/homeownership

List of housing authorities where it's possible: https://portal.hud.gov/hudportal/documents/huddoc?id=publiclist_vhosites.xls

Joshua01
28th April 2017, 10:09 AM
I've owned a great many real estate parcels since 1983. I've always had a job, I've never missed a mortgage payment and I've never been turned down for the small number of loans I've applied for. I HAVE turned down literally hundreds of thousands of dollars worth of credit offered to me over that span. None of the events (housing bubble, stock market crash, economic downturns) have ever had any real effect on me or my family.

Millions of responsible people have done the very same thing as I have. There is something to be said for personal responsibility. The people who find themselves in this kind of trouble have only themselves to blame. No one is watching out for you except YOU! The bankers can't take advantage of you if you refuse to sign on the dotted line.

crimethink
28th April 2017, 10:24 AM
The bankers can't take advantage of you if you refuse to sign on the dotted line.

And I have no problem whatsoever with people defaulting on usurious loans of invented "money." Strategic default is a glorious thing. LOL

7th trump
28th April 2017, 10:32 AM
Money invented by "your" signature, not the banks.
Banks cannot and never have invented money out of thin air by themselves.
It takes the signees signature to do so.

So to say you don't have a problem seeing defaults causing everyone else to bail out the loan is not a Christian thing to do when God says to stay in honor with your contracts.
crimethink you're nothing but a phony play acting Christian.

Dachsie
28th April 2017, 10:34 AM
"There is something to be said for personal responsibility. The people who find themselves in this kind of trouble have only themselves to blame. No one is watching out for you except YOU! The bankers can't take advantage of you if you refuse to sign on the dotted line. "

I agree with some of what you say but disagree with others. The popular guy named Cliff High of HalfPastHuman linguistic programming guy who some say is very good at predicting the future (I do not) said he paid off his mortgage in full about 5 years ago and he still cannot get the lender to give him the deed to his house, so he apparently is a financially responsible person who got caught up in the MERS mess and he cannot even get what he paid for. If the lenders need money bad enough they will employ their arsenal of dirtiest tricks. These days, I do not think you can totally avoid being ripped off even if you had a team of good lawyers there with you at closing checking all the fine print before you signed. Problem is total corruption in businesses and government and reward for ripping people off and punishment for people who try to live conservatively and do right in their finances.

There are hundreds of thousands of "personally responsible" people who have lost their jobs and cannot get another one through no fault of their own.

I personally think the real estate business is low of the ethics scale and has been for a very long time, right down there with banks and insurance companies.

I believe it was in this video that I learned that a large percentage of the people who got caught up in the 2008 debacle had good jobs, good income, good savings, and good credit rating. They simply were the victims of predatory lending practices and an economy that went south.
https://www.youtube.com/watch?v=YBbwb6Sv4PM

Mortgage Crisis in a Nutshell - Presented by John Campbell

Erich Vieth


Start at:
Published on Apr 21, 2012
In this one-hour video, Attorney John E. Campbell explains the main aspects of the mortgage crisis that has devastated the U.S. housing market and the economy.

crimethink
28th April 2017, 10:49 AM
Money invented by "your" signature, not the banks.
Banks cannot and never have invented money out of thin air by themselves.
It takes the signees signature to do so....stay in honor with your contracts.


Imbecile, no "contract" exists where fraud is the other party's purpose. And in these cases, that party is the bankster. He claims to be "lending" you money, but you admit it doesn't even exist until you sign.

Imbecile, you pretend to be "Bible-wise," yet you obviously haven't read anything in it beyond what your preacher has told you:

At the end of every seven years you must cancel debts. This is how it is to be done: Every creditor shall cancel the loan he has made to his neighbor. He shall not require payment from his neighbor or brother, because Yahweh’s time for canceling debts has been proclaimed.

Deuteronomy 15:1-2

Joshua01
28th April 2017, 11:57 AM
I don't totally disagree however; I will say those people bear the brunt of the responsibility. During my late thirties and early forties I knew well enough that borrowing 120% of the value of my home so I could go buy a boat or a camp in the mountains wasn't a really terrific idea and was financially irresponsible. Either I'm was much smarter than them or they were just greedy and didn't think it through like I did. You roll the dice and lose, you then don't blame the dealer.
"There is something to be said for personal responsibility. The people who find themselves in this kind of trouble have only themselves to blame. No one is watching out for you except YOU! The bankers can't take advantage of you if you refuse to sign on the dotted line. "

I agree with some of what you say but disagree with others. The popular guy named Cliff High of HalfPastHuman linguistic programming guy who some say is very good at predicting the future (I do not) said he paid off his mortgage in full about 5 years ago and he still cannot get the lender to give him the deed to his house, so he apparently is a financially responsible person who got caught up in the MERS mess and he cannot even get what he paid for. If the lenders need money bad enough they will employ their arsenal of dirtiest tricks. These days, I do not think you can totally avoid being ripped off even if you had a team of good lawyers there with you at closing checking all the fine print before you signed. Problem is total corruption in businesses and government and reward for ripping people off and punishment for people who try to live conservatively and do right in their finances.

There are hundreds of thousands of "personally responsible" people who have lost their jobs and cannot get another one through no fault of their own.

I personally think the real estate business is low of the ethics scale and has been for a very long time, right down there with banks and insurance companies.

I believe it was in this video that I learned that a large percentage of the people who got caught up in the 2008 debacle had good jobs, good income, good savings, and good credit rating. They simply were the victims of predatory lending practices and an economy that went south.
https://www.youtube.com/watch?v=YBbwb6Sv4PM

Mortgage Crisis in a Nutshell - Presented by John Campbell

Erich Vieth


Start at:
Published on Apr 21, 2012
In this one-hour video, Attorney John E. Campbell explains the main aspects of the mortgage crisis that has devastated the U.S. housing market and the economy.

Dachsie
28th April 2017, 12:50 PM
"During my late thirties and early forties I knew well enough that borrowing 120% of the value of my home so I could go buy a boat or a camp in the mountains wasn't a really terrific idea and was financially irresponsible. "

That is not the kind of bad decision that caused many of these people to lose their homes in the last subprime mortage scam. The mortage lenders wanted to make a big of a loan as they could and told the people they may as well get as much home as they qualify for. Granted, prudent people might think twice about them trying to coax you into buying a more expensive home than they thought they needed and qualified for, but I still say there are some very sleazy games these real estate sales people play on people. I experienced it on one occasion myself. I remember how three of these guys sort of had me pinned in a small windowless room and they were trying to get me to buy a home at 14% when I had told them I wanted 11% fixed and no higher and I really was not interested in that larger house. They sort of stood up around me and ganged up on me and kept throwing a bunch of lies at me while at the same time ready to get me to sign on the dotted line. I ended up getting the house I wanted at the price I wanted which was well within my means. That still did not turn out well but I did get a better deal than most of my co-workers who were buying homes around the same time.

I think you were prudent but the truth of the matter is that the reason you came out unscathed was primarily due to the grace of God. I do believe God helps those who do their part in doing due diligence.

I wish I could teach a class to these people that are about to be sucked into buying a home now in the local housing market I live in.

To me, people ought to just look upon a house that is good shelter for their individual needs but is basically a stable simple neighborhood. But sometimes bad new plans are simply forced with no choice on homeowners.

My city is forcing annexation of big nice suburban neighborhoods so that they will have to pay much higher taxes and have to wait for the promise of being set up on city water and sewer which may never happen because city is not committing legally in writing to doing that - only promising some time in future. Meanwhile the residents have aging septic systems that will probably break down before city sewer is available so they will have to spend about $35,000 for a new septic system, an outlay that they will lose if they convert to city sewer any time soon after that expenditure.

osoab
28th April 2017, 01:37 PM
The dude in the op vid is a putz. Why green screen his background? Why is he just reading news articles word for word?

Dachsie
28th April 2017, 01:41 PM
He makes no secret about the green screen. He has made a good success of his channel which he has had for about 4 years, though he admits youtube is messing with his ad income from the channel. It does get boring to listen to him read but I find his commentary kind of entertaining. He is a big proponent of stacking silver.

osoab
28th April 2017, 01:59 PM
He makes no secret about the green screen. He has made a good success of his channel which he has had for about 4 years, though he admits youtube is messing with his ad income from the channel. It does get boring to listen to him read but I find his commentary kind of entertaining. He is a big proponent of stacking silver.

I read faster than he speaks. I think I draw better conclusions too. Most on this board draw better conclusions than that spaz.

7th trump
28th April 2017, 02:21 PM
Imbecile, no "contract" exists where fraud is the other party's purpose. And in these cases, that party is the bankster. He claims to be "lending" you money, but you admit it doesn't even exist until you sign.

Imbecile, you pretend to be "Bible-wise," yet you obviously haven't read anything in it beyond what your preacher has told you:

At the end of every seven years you must cancel debts. This is how it is to be done: Every creditor shall cancel the loan he has made to his neighbor. He shall not require payment from his neighbor or brother, because Yahweh’s time for canceling debts has been proclaimed.

Deuteronomy 15:1-2
What fraud?
Because you cant point to any.
Better chumps than you have tried but failed to point to any fraud.
If there was any fraud you would have already pointed it out....so lets see what kind of bullshit you are going to try and pass off as fraud.
3. 2. 1. ........go!
Lawful money isnt going to work either asshole so forget about that one. And no...you cant use the Bible either because there is not any verse that says you must use gold or silver. So what you got asshole?
Bring it!

Also.....what does the 7 year debt jubilee have to do with this besides you injecting it as an attempting to skirt around the spot light of being caught play acting as a christian?

I picked up on your scam long ago.

Dachsie
28th April 2017, 02:57 PM
"I read faster than he speaks. I think I draw better conclusions too. Most on this board draw better conclusions than that spaz. "

Good. Start your own channel.

Joe jsnip4 has been doing his videos for a long time and started out just as a hobby but then it built up and he started making good youtube money and now yt has cut a big part of his youtube money but he says he just enjoys doing it and will keep doing them even if he never makes a penny again. He seems to have a good computer programming job, a skill he taught himself, and he seems to be a good husband and father.


Jsnip4 gives me short cuts and leads and saves me time before I go all around and read a lot of articles. This way I keep up with the latest in the economy collapse by reading the articles he links. He does not read every article in full and he spends a lot of time commenting and he does usually provide the links to the articles. It is never great to hear several paragraphs read, even by good readers. I personally am not looking for conclusions. I form my own conclusions. I do like being kept informed though, and I thought he set up a good strong documented case for a repeat of the catastrophic 2008 housing collapse/economic downturn. I think that is something I and others can learn from and maybe avoid some costly mistakes.