America's #1 Mortgage Broker

It was possible for almost anyone to get a mortgage by 2004.  And this was just irresponsible lending.  This was a really good post explaining it what caused these problems.

Thanks, Brian.  I appreciate you sharing this with the ActiveRain community. 

Meanwhile, shortly after posting the video, I got an email from a person in the business asking for permission to share it with his clients.  Just in case anyone else is wondering the same thing, "yes -- go ahead".

Education leads to awareness which leads to "better homeowners".  Hopefully, there are some good take-aways for everyone.

Great Explanation - you make it clear to practitioners and consumers (potential clients) alike.

Thanks, Brian!

DEAN & DEAN'S TEAM CHICAGO

Nice job and good explanation Thanks for the info.

Great information, thanks for sharing.

 

Brian - Thanks for sharing... something I can pass along to people easily to understand what happened and what continues to effect our market place.

P.S.   pleasure meeting you at Inman !

Actually, please thank Dan Green.  Dean, FWIW, Dan's firm is in Chicago

Brian... Dan sent this to me yesterday and I couldn't agree more. Very simplistic explanation. Especially with the stick figures... you don't even have to be colored blind to understand this one... lol

A great simple explaination of the business today. Thanks

Simple, but perfect.  I just wrote a quick post titled "Mortgage Crisis for Dummies" and linked to the video.  Thanks for pointing this out!

Great explanation - easy to understand, and probably an eye-opener for many. Thank you for passing this along.

Jeff     

Brian    Excellent post....  I really like this.

Dan  - you are brilliant.   What a great easy explanation that resonates with all of us.  Thanks also for your generosity in allowing others to share this.

 

 

Brian.. Thanks for posting this.. it really is the best explanation ever.. like Vicki I also did a post on my blog with a link to you and Dan..

Brian,

Very clear-cut way to explain what happened in the last several years. The scary moments are towards the end of the video when the shaded circle begins shrinking again and by 2008 the circle is real small. And what the size actually means. 

This is good.  Thanks for the post on your blog.

That was great!  The only thing that I wished that you had made bigger note of was the extreme adjustments that many of these sub prime mortgages had built it.  It's not that these folks inherently don't deserve to own homes....if they had reasonable rates we wouldn't have the foreclosure problems that we have.  

That can be fixed if the powers that be cared to fix them!

 

Bob Mitchell

ValueList Real Estate Services, Inc. 

I agree Bob, it is a good explanation but doesn't really address the great need to refinance the subprime loan borrowers have built into their loan due to the rate increases once the loan hits its adjustable period.

Dave,

I think Dan addresses it well; he says it won't happen. 

Brian, Thank for the post.  I have to agree with some of the points of the presentation, but also have to disagree with the adjusting of the borrowers interest rates is a major factor in the current situation.  My opinion is based some research I have done on properties that were on the Sheriffs block for sale.  Very few of the loans written on the peoples homes were ARM's and as best I can tell the loans went into default prior to any rate adjustment.   Quite a number of the borrowers in foreclosure had been using the homes a a piggy bank, going to the well every couple of years for more cash.  Now the well is dry.  I believe a few months ago that Countrywide claimed the major reason for foreclosures was Curtailment of Income.  I believe this is a more likely explanation of what is happening.  

SOAPBOX MOMENT.   Do you know any politician that would acknowledge lower wages, closing of companies and the loss of jobs to other countries has anything to do with our current economic situation.   Something that could be blamed on them?  Or do you think they would blame someone else? 

Also do you feel sorry for the business that sent jobs overseas in the name of profits and are now complaining or concerned with weak US economy because we can no longer afford their products.   Will they take any responsibility?

Hope no one takes offense to this soapbox moment. 

This is only my opinion and only looks at my personal review of the foreclosures in the Cleveland Market Area. 

This actually isn't a very good explanation of the crisis at all.  The crisis has more to do with the risk realization of extremely leveraged positions in CMO's and CDO's.  This is more of a commentary on the past few years history of lending practices. Sub-prime lending can actually work correctly if risk is accurately portrayed in the open market.  This was one piece of the puzzle, but you should include at least some material on the bigger picture.

If you are going to explain something to a novice you should presume they know nothing and start from there.  Finally a clear explanation.  Thank you.

 Love the art.  You may consider a second career, well, maybe that is a stretch, but it is well appreciated. 

What is a Subprime Loan?  I live in a small rural community where they do Rural Development Loans everyday!  People are getting into homes with 0% down and only the cost of a credit report and appraisal fee.  Last week the credit score requirements went way up, but most of our foreclosures have been a result of this type lending.  The question is, do we want to help every American become a home owner, or should we reserve that luxury for the wealthy only? If so, we may become a Nation of Renters yet.