Reply to "$1.2 TRILLION SECRET"

Miles I couldn't agree more. I lost so much business because we had a strict rule at my company...if the borrower made the income and could prove they were self employed and had cash in the bank that was representative of what they said they earned...OK. When we wouldn't do the loan, they'de go down the street and find 10 other companies very willing to do the loan. I have had teachers who get a paychecks and W-2's, that stated their income...why because they had to lie to get the house they wanted...they were making $8,500 per month...they stated they made $18,000 per month...and now they can't refinance to get out of the bad loan that is adjusting because they are in way over their heads and you don't get a loan today unless you can document your income...wow what a concept.

I had someone tell me they got burned on a their loan and wanted it recinded and need advise on how to do that...they had retired after getting their loan and were only making $6,800 per month in retirement...and couldn't continue making their payments. Guess how big the loan is $4,000,000. AND they took $1,000,000 cash out and at the time they got the loan were earning $14,000 per month, guess how much they told me they stated on the application to get the $4,000,000 loan...$140,000 PER MONTH...PER MONTH, I'm not making this up. The borrower can't make the payments now because he's spent the $1,000,000 cash that he took at closing and wants to have his loan washed away because Countrywide only has an electronic scan of the original loan document with his signature, which is standard in the industry....he believes he's been wronged and wants the loan to be forgiven.

I could go on and on about stories of staff members from banks telling us inflate the income on loan applications because the debt ratios were too high, and when I said "that misrepresentation"...I was told "don't worry about it, we do it all the time"! That bank was about 40 years old based in California. It was sold 2-3 years ago to a 100 year old east coast bank who never did funky loans. The 100 year old bank was just taken over by one of the government sponsored BIGGIE BANKS (rimes with cargo) because of all the bad loans on the books of the bank that got purchased. These are just a few of the things I've seen, and unfortunately WE, our kids and grand kids are all going to pay for the bail out of this problem.