williemo

Mortgage Delinquencies Continue to Climb, Watch Out for Other Loans

MFI-Miami has summed it up well. However, it is my belief that most loan officers did understand the risk via the indexed rate. As all the rest of the commission-driven loan officers during that time, they were no different than an aggressive car or appliance salesman, blinded by the commissions, and sales reports, and how they'd look to their peers, to be really concerned about the customer. To them, isn't it the customers' responsibility to plan for themselves and know what they can afford? If the underwriters approve it, then it must be ok. To me, there was no real way to stop what was happening, other than the fallout this year. No one could yell loud enough to stop the speeding lending train before it crashed into the station. Everyone had their head down, in their own world, and didn't care.