Subprime, how it went down (no way, 56K)

[Phlip]

Got an email from a friend last week, it had a powerpoint presentation attached to it that explained how the whole thing went down... It happened to contain some very juvenile MS paint pictures, which made it very humorous...
I will share with you folks:
http://img184.imageshack.us/img184/1036/subprime01qg3.jpg

http://img295.imageshack.us/img295/623/subprime02ss3.jpg

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[BustedS13]

that really sums it up, i'm gonna send that around. i'm working with a friend to buy a house right now, and it's a good thing our dads' credit scores don't blow, because there's no way we could have gotten a decent loan without them.

[Antihero983]

does that set the record for longest post ever?

and i kinda get it....im not too informed on the whole housing/investment market, so i only get parts of it.

[mrmephistopheles]

How very true.

[lflkajfj12123]

that was great, thank you.

[EvilRB]

Thanks for making me laugh! I needed that!!

[B18C5MK1]

hahaha yeah, thats pretty much how it alll went down. i was one of the many to get laid off in subprime... i was laid off from 4 different companies that closed down in less than 6 months. haha. weak sauce.

thanks for the laugh!

[flip3d]

Best ppt evar!

I love America!

[drift freaq]

while humorous, its truly a oversimplification of the whole problem and is distortion worthy in its effort to make a joke out of it. Sorry if I am being harsh and serious about this. I have friends in the business who are honest. Fact is the federal goverment and congress setup the ability for sub prime and jumbo loans back in the Clinton era. By loosening up the loan regulations so that they would be able to allow more people, to supposedly be able to afford buying a house.
Yup Government deregulation at its worst. Anyways the current economic situation has now gone way beyond sup prime issues. Americans are defaulting on credit period because they have been living on credit way to long and not saving. Now add into this the economic engine slowing with the dollar falling in value, oil prices are no longer following the price going up or down with the supply and demand issue. Currently people are cutting back on gas consumption and gas inventories are up yet oil prices are up and gas prices are up. The model is broken. Speculators on the commodities trading floor are having a field day with oil price speculation partly based on the slowing American economy and the devaluation of the dollar.
The smartest thing the current adminstration could do is open up the strategic oil reserves thereby flooding the oil market which would cause the speculators to sell driving down the price of a barrel of oil by $15-20 a barrel which would boost the economy and raise the value of the dollar.

[xfallen1x]

HaHa that was a funny post there. I never saw that one. I too agree that the government has a huge fault in this dilemma. It's unfortunate for those of us in the industry who have been honest and worked to help those in need and we could only hope that we recover from this soon.
So with that I thought I'd share something sent to my by one of my clients that I thought was pretty funny. It's in Mortgage terms so I apologize for those who won't understand some of it, but you could get the general idea.


Mortgage Lending, Wholesale.

Very Important - Guideline Changes Effective August 8, 2007

* All borrowers must have one blue eye and one brown eye to qualify.
* LTV > 65% SIVA requires minimum credit score of 849.
* For all LTV > 65%, 360 months of payment reserves now required.
* Borrower's must have no previous bankruptcies in their family history going back three generations.
* A minimum of 25 years self-employment history now required for all NIV programs (at same location).
* Minimum Credit Score for Subprime Loans raised to 720.
* All non-arm's length transaction borrowers (mortgage, real estate professionals, family members) will be required to provide full-documentaion, subject to criminal background checks, wire tapping, strip-searches, and a minimum of 12 hours of interrogation by the Department of Homeland Security.

Please note these changes will go into effect within the next five minutes. So please lock your existing loan immediately. All existing loans in your pipeline must fund by noon tomorrow.

We apologize for the incovenience. We realize these are tough times in the mortgage industry for all of us. Be assured that we have a commitment to remaining strong and weathering out the storm. We ask for your understanding and cooperation.

Thank you.

[dori_pho]

HaHa that was a funny post there. I never saw that one. I too agree that the government has a huge fault in this dilemma. It's unfortunate for those of us in the industry who have been honest and worked to help those in need and we could only hope that we recover from this soon.
So with that I thought I'd share something sent to my by one of my clients that I thought was pretty funny. It's in Mortgage terms so I apologize for those who won't understand some of it, but you could get the general idea.


Mortgage Lending, Wholesale.

Very Important - Guideline Changes Effective August 8, 2007

* All borrowers must have one blue eye and one brown eye to qualify.
* LTV > 65% SIVA requires minimum credit score of 849.
* For all LTV > 65%, 360 months of payment reserves now required.
* Borrower's must have no previous bankruptcies in their family history going back three generations.
* A minimum of 25 years self-employment history now required for all NIV programs (at same location).
* Minimum Credit Score for Subprime Loans raised to 720.
* All non-arm's length transaction borrowers (mortgage, real estate professionals, family members) will be required to provide full-documentaion, subject to criminal background checks, wire tapping, strip-searches, and a minimum of 12 hours of interrogation by the Department of Homeland Security.

Please note these changes will go into effect within the next five minutes. So please lock your existing loan immediately. All existing loans in your pipeline must fund by noon tomorrow.

We apologize for the incovenience. We realize these are tough times in the mortgage industry for all of us. Be assured that we have a commitment to remaining strong and weathering out the storm. We ask for your understanding and cooperation.

Thank you.

If mortgage brokers could alter bank statements, this would be cake on top of icing. :naughtyd: