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Phil's Rambling Rants
February 26th, 2009
03:19 pm


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The financial mess

(9 comments | Leave a comment)

[User Picture]
Date:February 26th, 2009 09:33 pm (UTC)
Well, I'm sorry, but I'm sticking to my guns. Firsthand experience showed the big bank taking the fees for a fixed rate loan, then trying illegal methods to try and force me into a ARM. The only thing that saved me was knowing that everyone has a boss, and everyone wants to stay out of the boss's sight. And since I doubt my own branch of gigantoBank was alone in shaking people down techniques, I have to conclude that a lot of the ARMs out there are because the banks took advantage of people after getting all the fees and payments for the loans up front, saying that all that money would be lost if they didn't do as they were told. So as far as I'm concerned, these fatcats can sell one of their Learjets and live within their means, like they preach to us.
[User Picture]
Date:February 27th, 2009 12:03 am (UTC)
he big bank taking the fees for a fixed rate loan, then trying illegal methods to try and force me into a ARM


Nothing like this happened to me, but I had the luck to be in the market later, after the collapse, and by then I knew enough to have howled to high heaven and walked away from my fees if necessary before taking on an ARM.

I'm glad you wriggled out from under their con job. Good on you.
[User Picture]
Date:February 27th, 2009 12:59 am (UTC)
I'm certainly not trying to claim that didn't happen to you, and I'm perfectly happy with staking whoever decided to pull that on you to an anthill. But I believe (without any actual evidence) that most of the people who got ARMs that they couldn't handle when the teaser rate reset were not people who qualified for a fixed rate loan and then got bait-and-switched. I think a lot of people got sold ARMs without understanding that the rate would reset (and the mortgage originators encouraged that ignorance), and a lot more believed that they could automatically refinance into a fixed rate loan before the teaser expired (again encouraged by the originators). And I stand on my contention that that kind of behavior on the part of loan officers was what the market wanted, so it's what it took to hold a job/get bonuses/get promoted as a loan officer. Firing all the loan officers wouldn't have helped, because the market would have winnowed the replacements to behave the same way.
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