Until recently I was an underwriter for a sub-prime mortgage company that is about to close. It seems that most media outlets and government officials fain ignorance about the real underlying cause of the problem. There is either a tendency to blame the borrower or act as though no one in the industry {or outside of it} saw this coming. They fail to mention that those who gained the most financially got off scot free while leaving the mess behind for everyone else to clean up. In my former company, the sales managers and loan officers "held the keys to the safe" while deciding which guidelines to ignore sometimes going so far as to bribe fellow underwriters to "look the other way". Sales managers often overrode an underwriter's decision they did not agree with. Other times fellow underwriters would be threatened with their job for "impeding company growth and progress" just because they refused to go along with the flagrant disregard of guidelines . I complained to the sales managers about the bribing but all I got was a formal write-up for making "inappropriate comments".
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There was absolutely no support from the owner of the company all the way to the human resource representative. This company is as corrupt as they come. I can't tell you the number of sexual affairs that occurred between married and unmarried people; primarily among the management staff {at the workplace itself}. Promotions were strictly political thus moving people "up the ladder" who never proved themselves worthy or were on a final written warning to be terminated {for poor performance}. As a result of the corrupt management of this company, I and several hundred others were laid off. I believe the federal government needs to investigate this company and bring to trial those corrupt individuals who broke the law. This would set an example for the rest of the mortgage industry that absolute corruption corrupts absolutely.
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Seriously though, I wish you luck in findiing your next job. Move on and you will be fine. This housing BS lies in those who speculated and lost. Now It's a great opportunity for us who saved and planned ahead. It's no different then a Stock Market issue, and Job Specialty and/or marriage. You take a chance on a winner and sometimes you might come up short.
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John Adams “The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence.”
Ronald Reagan: 'Everybody that is for abortion has already been born'
"I never said I was worth it. I only said I wouldn't do it for less " William F. Buckley Jr.
If your company were theleader in the mortgage sector, perhaps it would be fair to represent the entire industrythrough it. There were thousands of lenders before this latest "meltdown". Some did alright; and some failed themselves and their customers miserably. However, the entire industry isn't as uniform as some would like to believe.
Your points are valid to a point, and the stories you tellmirror the goings-on in companies throughout the economy. But as much as some would like to paint a scene of corporate robber-barons conspiringin executive boardrooms to pocketthe country's money, that's just nonsense.
Seriously though, I wish you luck in findiing your next job. Move on and you will be fine. This housing BS lies in those who speculated and lost. Now It's a great opportunity for us who saved and planned ahead. It's no different then a Stock Market issue, and Job Specialty and/or marriage. You take a chance on a winner and sometimes you might come up short.
Gonna have to disagree here. A home in America is supposed to be the only guaranteed asset someone has. If kept up, it will increase in value, thus remaining to be an asset. Seems even our homes are slowing down in value now too. I thought the economy was so "strong". Hmmmmm...... [:-]
I'm sure there are some who locked into rediculous borrowing terms; and that's their fault. But, when you buy a home and assume (rightfully so) that it will increase in value to help offset what you owe you can't really do that much now. The housing market is slowly plumitting. "FOR SALE" signs all around my area. That covers about 5 counties I work in on a daily basis.
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Seriously though, I wish you luck in findiing your next job. Move on and you will be fine. This housing BS lies in those who speculated and lost. Now It's a great opportunity for us who saved and planned ahead. It's no different then a Stock Market issue, and Job Specialty and/or marriage. You take a chance on a winner and sometimes you might come up short.
Gonna have to disagree here. A home in America is supposed to be the only guaranteed asset someone has. If kept up, it will increase in value, thus remaining to be an asset. Seems even our homes are slowing down in value now too. I thought the economy was so "strong". Hmmmmm...... [:-]
I'm sure there are some who locked into rediculous borrowing terms; and that's their fault. But, when you buy a home and assume (rightfully so) that it will increase in value to help offset what you owe you can't really do that much now. The housing market is slowly plumitting. "FOR SALE" signs all around my area. That covers about 5 counties I work in on a daily basis.
There is no such thing as a 'guaranteed asset' if what you mean is the value will always go up. There have been real estate bubbles in the past and there will be again.
a home will almost always guarantee an increase in value....if you use it as a home like you're supposed to and live in it for a while, not use it as an asset to gain purchasing power or spend your equity in it like so many people chose to do. There's no such thing as a guaranteed asset, one fire and a house is no longer an asset to you.
one fire and a house is no longer an asset to you.
That kinda depends on the terms and conditions of your insurance policy...
Boy, I know that very well. If you need advice just ask me.
I just read a good article blaming all this on the Goverment. Thereare valid points to it all. Paraphrasing it, the problem stems from the rising house prices in the first place. Studies have shown both in this country as well as others goverment restrictions on building have been the cause. You can blame it on things like open space BS and smart growth. These restrictions have made the cost of homes very expensive. In areas where these restrictions have been resisted, the housing is resonsable. This demonstates what happens when politicans try to micromanage the economy.
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John Adams “The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence.”
Ronald Reagan: 'Everybody that is for abortion has already been born'
"I never said I was worth it. I only said I wouldn't do it for less " William F. Buckley Jr.
Mortgage Meltdown
