Mortgage Brokers & Investment Bank Connection

Discussion in 'Stocks' started by stockinvestor, Sep 26, 2008.

  1. Hi team,

    The reason why mortgage brokers imploded? and the reason why these investment banks are failing, what is the connection there??

    thanks for any help
  2. very simple. they lent good money to lowlife, who overpaid for houses they could not afford even at a FAIR price.

    these lowlife are now defaulting on their debts, thats what lowlife do, thats why they are called lowlife, and you dont lend to them.

    lowlife needs to rent, and be evicted when they default on that. now that they have stolen your money, you are up shits creek.

    other reasons include fraud, Mozillo, fraud, greed, fraud, and other theivery too heinous to mention.

    this is the best explanation you will get.

    Note that few if any will blame the defaulters, preferring to blame ONLY Wall St. This is proof that the average American is a nitwit.

  3. Mortgage Brokers make a commission when they make a "sale" (originate mortgages). As a cut of % + closing costs.

    Freddie and Fanny reduced their standarts where they would by almost any crap.

    Banks allowed for no-income verification loans.

    Mortage Brokers started finding ANYONE to buy a house and giving them crazy terms (such as Adjustible mortgages).

    POOR (as it those with no MONEY) FUCKING MORONS started buying houses cuz they will get a mortgage with a 1% interest rate (for 1 month).

    Mortgage brokers were NOT RESPONSIBLE for defaults: FUCKING ZERO underwritting standarts.

    Banks didnt care either cuz they always resold got insurance from other banks.