San Bernardino monthly meet and drive 2007 thread.
12-20-2007, 03:13 PM
#5551
Administrator
iTrader: (7)
creative financing is partially what got our economy into the sub-prime real estate mess. the banking industry went around peddling loans to ppl who couldn't afford them by overstating their income to push the loans thru. but, the buyers were irresponsible too by going along with it- due to their greed.
12-20-2007, 03:20 PM
#5552
IstanbulNotConstantinople
12-20-2007, 03:20 PM
#5553
幹他媽!
best buy also had a $400 gateway notebook that was pretty decent for a budget machine.hp notebooks, imo, totally suck *** beyond- not to mention being way overpriced. for that much money she could've gotten something so much better.
just be happy that now u won't have to help her fix it since she didn't buy the one u suggested. (it always defaults to that when it happens.)
12-20-2007, 03:26 PM
#5554
幹他媽!
give us the inside scoup then jorge... inquiring minds want to know...
the info i've been hearing is what i read in the news and hear on NPR. dateline interviewed fired/ layed-off loan officers from WaMu and they said they were encouraged to push loans thru while mgmt turned blind eyes to applicants that had overstated incomes to qualify.
but, if this is all not true, i'd be interested in getting an insider's view of what actually went on.
the info i've been hearing is what i read in the news and hear on NPR. dateline interviewed fired/ layed-off loan officers from WaMu and they said they were encouraged to push loans thru while mgmt turned blind eyes to applicants that had overstated incomes to qualify.
but, if this is all not true, i'd be interested in getting an insider's view of what actually went on.
12-20-2007, 03:48 PM
#5555
Administrator
iTrader: (7)
I have access to data that they don't. 
(perks of working for the 2nd largest lender in the country)
It's tough to even know where to begin while not turning this into a 100 page thesis. (that was for you Erica!
)
- Reports of these loans "no doc" loans are GREATLY exaggerated. No sub-prime loan ever got underwritten with NO doc. No doc loans are reserved for people with the highest of credit scores. (750 + ) Some of you might have that, but you might not know how rare that number is.
- Banks HAD to change the way they underwrote loans because of one of the MAJOR driving forces of the US Economy; small business owners. (as of a few years ago, more then 92% of ALL business in the US were 'small businesses')
- Small business owners never document all of their income or Uncle Sam would take it to them every year. They keep most of the money under the business entity (to shelter it from taxes) and run little through their payroll.
- A very good friend of mine nets over $60,000 a month yet runs only about $10,000 through payroll.
This makes it so small business owners can continue to thrive yet it virtually eliminated their ability to secure financing for a home. This had to change. Enter 'stated income' loans.
Contrary to what the media feeds us, banks do ask for proof of employmenet and verify assets. (this is how I bought my last house) Basically, if the borrower states they make "X", then the borrower better have at least "X times Y amount of months" in their bank accounts.
This worked for a LONG time but as property values increased significantly (Keith's house is a prime example), every consumer out there figured they'd be the next Donald Trump by flipping homes and well.... this is where things got ugly.
Borrowers overstated their incomes and now they're paying the price.
I am still a huge fan of stated income loans if they are done properly and given to honest borrowers. (due dilligence needs to be present)
Other fact: Countrywide, IMB, Citi, WF, and WAMU get anywhere between 20 - 60% of their lending business from their wholesale divisions. (aka brokers) Many cases where borrowers are losing their homes can be traced back to brokers who didn't look out for the client, didn't properly disclose terms, or just forged bank statements to get it past bank underwriters. (Ameriquest had some problems with this)
Long story short: (that's for Cesar) MANY people are to blame for this
- Borrowers for being too ambitious
- Brokers for not disclosing everything
- Borrowers for NOT READING the documents. Cesar can tell you how HUGE docs are these days. To NOT read or see the warnings in them...you'd have to be a retard
- Secondary Market (aka investors) These guys bought up these loans like they were going out of style. So guess what...banks kept doing them! This goes for any industry. Can you blame them?
As for the sub-prime mess: those people should have neverbeen able to purchase those homes, plain and simple. Those banks deserve what's coming to them.
I've got reports and statistics but I really don't want to bore everyone. Back to our regularly scheduled programming?
(perks of working for the 2nd largest lender in the country)It's tough to even know where to begin while not turning this into a 100 page thesis. (that was for you Erica!
)- Reports of these loans "no doc" loans are GREATLY exaggerated. No sub-prime loan ever got underwritten with NO doc. No doc loans are reserved for people with the highest of credit scores. (750 + ) Some of you might have that, but you might not know how rare that number is.
- Banks HAD to change the way they underwrote loans because of one of the MAJOR driving forces of the US Economy; small business owners. (as of a few years ago, more then 92% of ALL business in the US were 'small businesses')
- Small business owners never document all of their income or Uncle Sam would take it to them every year. They keep most of the money under the business entity (to shelter it from taxes) and run little through their payroll.
- A very good friend of mine nets over $60,000 a month yet runs only about $10,000 through payroll.
This makes it so small business owners can continue to thrive yet it virtually eliminated their ability to secure financing for a home. This had to change. Enter 'stated income' loans.
Contrary to what the media feeds us, banks do ask for proof of employmenet and verify assets. (this is how I bought my last house) Basically, if the borrower states they make "X", then the borrower better have at least "X times Y amount of months" in their bank accounts.
This worked for a LONG time but as property values increased significantly (Keith's house is a prime example), every consumer out there figured they'd be the next Donald Trump by flipping homes and well.... this is where things got ugly.
Borrowers overstated their incomes and now they're paying the price.
I am still a huge fan of stated income loans if they are done properly and given to honest borrowers. (due dilligence needs to be present)
Other fact: Countrywide, IMB, Citi, WF, and WAMU get anywhere between 20 - 60% of their lending business from their wholesale divisions. (aka brokers) Many cases where borrowers are losing their homes can be traced back to brokers who didn't look out for the client, didn't properly disclose terms, or just forged bank statements to get it past bank underwriters. (Ameriquest had some problems with this)
Long story short: (that's for Cesar) MANY people are to blame for this
- Borrowers for being too ambitious
- Brokers for not disclosing everything
- Borrowers for NOT READING the documents. Cesar can tell you how HUGE docs are these days. To NOT read or see the warnings in them...you'd have to be a retard
- Secondary Market (aka investors) These guys bought up these loans like they were going out of style. So guess what...banks kept doing them! This goes for any industry. Can you blame them?
As for the sub-prime mess: those people should have neverbeen able to purchase those homes, plain and simple. Those banks deserve what's coming to them.
I've got reports and statistics but I really don't want to bore everyone. Back to our regularly scheduled programming?
Last edited by Jedi54; 12-20-2007 at 04:06 PM.
12-20-2007, 04:22 PM
#5556
the more things change
my girlfriend works for downey savings and loans her agents are always
trying to get loans passed her ,that people can not afford.
she turns them down cause she knows a bad loan will come back to hunt them.
trying to get loans passed her ,that people can not afford.
she turns them down cause she knows a bad loan will come back to hunt them.
12-20-2007, 05:38 PM
#5562
Administrator
iTrader: (7)
nah, the LAX bunch seems to be hibernating for the winter.
12-20-2007, 05:49 PM
#5563
T-29 years and counting
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Join Date: Apr 2005
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THAT IS FOR SURE probably put their cars away for storage as well so that they dont have to drive with the roads as they are in the winter.
12-20-2007, 06:00 PM
#5564
Administrator
iTrader: (7)
HEY now! I plan on leaving my car at home if it's raining.
12-20-2007, 08:22 PM
#5565
幹他媽!
it's not going to rain tomorrow! maybe i'll drive my 8 into work my car hasn't been washed in like 4 months. we never did get to do detail day on keith's car. but, oh well...
my car hasn't been washed in like 4 months. we never did get to do detail day on keith's car. but, oh well...
12-20-2007, 08:24 PM
#5566
Administrator
iTrader: (7)
speakin' of detail day. I still need to order that porter cable.
Maybe some time next month I can head to your place Detrich???
Maybe some time next month I can head to your place Detrich???
12-20-2007, 08:37 PM
#5567
One ball, corner pocket
Join Date: Apr 2004
Location: Fontucky, right next to Patriotville
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hmmm, it is not good to be driving your car, step on the clutch and hear "snap"....f'in clutch. I know where I will be tomorrow...f'in Romero.
12-20-2007, 08:42 PM
#5568
Administrator
iTrader: (7)
you do know about the bad welds on the clutch pedal, right?
12-21-2007, 12:12 AM
#5570
One ball, corner pocket
Join Date: Apr 2004
Location: Fontucky, right next to Patriotville
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tell me more please....more info prior to going into the dealer would be nice. I'm not sure how I am going to proceed tomorrow, because I just went in about a week ago with clutch issues and all they did was adjust my clutch pedal out. Seemed to handle the problem until the "snap" tonight...now, I'm back to the same problem I was in before....(Casey knows the problems I had...Casey, I'm having to do the same thing now to get the car in reverse and 1st gear).
..clutch just won't disengage because the pedal won't move properly. I wonder if I can point the blame at Mazda.....?
Jorge, any TSB's on this?
..clutch just won't disengage because the pedal won't move properly. I wonder if I can point the blame at Mazda.....?
Jorge, any TSB's on this?
12-21-2007, 03:36 AM
#5571
幹他媽!
hmm... i noticed that sometimes once in a blue moon my clutch wobbles just a little bit. but, my beamer clutch does this also, so i figured that was normal. either way, sorry to hear about the problem keith. hopefully the dealer will fix it right this time.
yah, once there's time we can do a detail day somewhere. my garage is still a mess due to the remodelling, but hopefully i will get stuff straightened out over the next couple of weeks. all my detailing stuff is in boxes covered by plastic tarp in the backyard..... <lol>
yah, once there's time we can do a detail day somewhere. my garage is still a mess due to the remodelling, but hopefully i will get stuff straightened out over the next couple of weeks. all my detailing stuff is in boxes covered by plastic tarp in the backyard..... <lol>
12-21-2007, 10:02 AM
#5572
T-29 years and counting
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wow that sucks keith get that fixed right away. (what exactly is the problem?)
....now not to say i told you so but keith and casey have had a lot of little issues with their cars. and i was always told that autocrossing wont hurt the car but you guys have been to romero much more times then i have. i just couldnt deal with that having only 2 cars.
....now not to say i told you so but keith and casey have had a lot of little issues with their cars. and i was always told that autocrossing wont hurt the car but you guys have been to romero much more times then i have. i just couldnt deal with that having only 2 cars.
12-21-2007, 10:59 AM
#5575
Bigboy in a little car!
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Join Date: Nov 2004
Location: In So Cal.. out in BFE... but in the good part... but not really by Cesar, Keith or Loren...
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I have only had one problem with my car, and that was the tranny after the AMZOIL. other then that, no problems with the car. (ok other then a dead battery way back when, and a set of brake pads)
Keith is the one that has had all the problems. one of them also being the tranny after the AMSOIL. some of Keiths problems are simple high milage problems. like a clutch going out, and brakes.
Keith is the one that has had all the problems. one of them also being the tranny after the AMSOIL. some of Keiths problems are simple high milage problems. like a clutch going out, and brakes.