mr_subprime

Citi's Flip-Flop on Mortgage Cramdowns: A Really Bad Idea

I'm here to tell you that the banks are not victims here.THEY ARE THE PURVEYORS OF FINANCIAL RUIN. The subprime borrowers who who were TAKEN ADVANTAGE OF are the victims. Yes, I said TAKEN ADVANTAGE OF. Look at the trust performance of, say, any 05 vintage securitized loan trust deal and you will see that the ARMs in these instruments are running 20% foreclosed, bankrupt, or REO. This was no accident! And until you people get your head out of your butts and see that the banks INTENDED to make bad loans so as to capitalize on the real estate, you will not understand. The lack of real UNDERWRITING and FRAUDULENT ORIGINATION PRACTICES are to blame. I know. I'm one of those "deadbeats". But I didn't buy a house to defraud the bank. I bought a house to raise my family in. Let's get a little truth into the marketplace!