The financial mess - Phil's Rambling Rants
The financial mess|
|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.