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Credit Party Not Quite Over


 invite response                
2007 Jun 20, 4:52am   14,426 views  125 comments

by Patrick   ➕follow (55)   💰tip   ignore  

I was amazed to get this email flyer from a mortgage broker today, showing that a major bank is still accepting no-downpayment loans with "stated income" - meaning you can lie about your income and they will not investigate.

100% STATED* is Still Available...Submit Today while it's Still Offered!!
>>>Last day to submit 100% Stated transactions is JUNE 25th!< <<

Submission requirements:
HE Application
1003
Credit Report
Submit and Decision Stand-Alones ONLINE at www.(deleted).com

*Credit scores as low as 680 for SIVA - requires 6 months PITI, seasoned for only 1 Month (most current bank statement)

Applications submitted on/or before June 25th, 2007:
â—¦ 660+ 100% to $500k, FULL DOC, o/o*
â—¦ 680+ 100% to $150k, SIVA, o/o*
â—¦ 700+ 100% to $200k, SIVA, o/o
â—¦ 740+ 100% to $250k, SIVA, o/o

Applications submitted AFTER June 25th 2007:
â—¦ 680+ 100%, FULL DOC ONLY, o/o
â—¦ 680+ 90% Max CLTV, SIVA, o/o

HOME EQUITY RATES:
See attachment

100% STATED is Going Away –

June 25th is the Last Day to Submit 100% Stated

SUBMIT TODAY!!!!

"Think of the possibilities! Sell Second Mortgages!" If you're not selling seconds, you are missing a 9 TRILLION Dollar opportunity.

#housing

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1   e   2007 Jun 20, 5:11am  

But you need Verified Assets.

>requires 6 months PITI

Though $30,000 in a bank account isn't all that much.

2   sfbubblebuyer   2007 Jun 20, 5:38am  

More than most people have, eburbed.

3   sfbubblebuyer   2007 Jun 20, 6:06am  

Let's see how long the credit party lasts. I'm betting major fallout by Independance day. And how many FBs will celebrate by mailing in the keys after one last big backyard barbeque?

4   DinOR   2007 Jun 20, 6:15am  

@HARM,

Many thanks sir! I'm DinOR again! :)

5   DinOR   2007 Jun 20, 6:20am  

sfbubblebuyer,

Independence Day isn't all that far off. I'll take it you see the "hedgie wedgie fest" as just getting underway?!

6   HARM   2007 Jun 20, 6:27am  

@DinOR,

np. Yup, looks like the "hedgie wedgie fest" is just getting warmed up.

7   DinOR   2007 Jun 20, 6:44am  

The.. ahem.. "High-Grade Structured Credit Strategies Enhanced Leverage Fund".

"High-Grade" huh? The contorted and lengthy name of the fund itself should serve as a warning to stay clear! What a debacle. Talk about "re-pricing the risk"?

8   sfbubblebuyer   2007 Jun 20, 6:54am  

They dodged a bullet on Monday, but Lynch didn't go for the 'work-out' scheme that would have locked them into not grabbing assets in a margin call for another 12 months. I wonder what the 800mill in assets actually sold for. I haven't seen it on the sites yet.

9   Bruce   2007 Jun 20, 7:29am  

The Bear Stearns wedgie fest (very nice, HARM) is getting a terrific airing over at Calculated Risk.

10   Carl in Berkeley   2007 Jun 20, 7:38am  

One of the things that has amazed me throughout this whole bubble thing is how often I see contextual ads for toxic mortgages and HELOCs while reading news stories about how bad toxic mortgages and HELOCs have been for the latest round of FBs.

11   KT191   2007 Jun 20, 7:43am  

“High-Grade Structured Credit Strategies Enhanced Leverage Fund” That does sound ridiculous. However, it does sound better than the “Ponzi scheme that allows people to buy houses they can not afford and make obscene money by charging hidden and ridiculous fees while selling the bonds to unsuspecting retiree's via their retirement accounts all while hoping the price of housing rises so the borrowers can refinance before defaulting on the loan and continue the cycle again fund.”

12   DinOR   2007 Jun 20, 7:52am  

KT,

O.K, from a marketing perspective I can see that. LOL!

13   HelloKitty   2007 Jun 20, 7:52am  

ATTENTION ROBBERS: OPEN UNGUARDED BANK VAULT WILL BE CLOSING JUNE 25th!!

HURRY!!!

14   DinOR   2007 Jun 20, 7:56am  

Carl in Berkeley,

I wondered that too? The adv. budgets weren't reflecting reality at all. It's funny b/c Ameriquest had this HUGE summer long ad campaign with the Rolling Stones last year. Now, Ameriquest is no more and the Stones are still playing (sort of).

15   StuckInBA   2007 Jun 20, 8:16am  

An honest Realtor doesn't have much to say.

http://realtytimes.com/rtmcrcond/California~Tracy~christibean

Just 2 lines, and lowest ratings. But 800 homes in Tracy ? Clearly, it is not a "Presitge" market.

16   e   2007 Jun 20, 8:19am  

This should cheer some housing bulls up:

http://www.pmi-us.com/media/pdf/products_services/eret/pmi_eret07v2s.pdf

We're in Risk Level 3 - where everything is only moderate.

17   Carl in Berkeley   2007 Jun 20, 8:25am  

>> Now, Ameriquest is no more and the Stones are still playing (sort of).

LOL, reminds me of when all the sports arenas and stadia were named for dot-com companies (not to mention Enron field) and Webvan had the seats (or something) branded at PacBell (SBC, AT&T, the NEW at&t) Park!

18   DinOR   2007 Jun 20, 8:30am  

eburbed,

Hysterical. Portland, OR evidently merits a (3) as well. Even though they qualified their ranking system some of the pecking order made sense and some of it didn't. What do THEY know that....?

19   Brand165   2007 Jun 20, 4:30pm  

Jon: It is always a great time to buy or sell a tech stock!

Not Investment Advice

20   Bruce   2007 Jun 20, 6:58pm  

HARM,

What do you consider productive? Was Henry James productive? Is Sandra Bullock productive? How about Teresa Heinz Kerry?

James was little noted as a writer in his lifetime. I would personally hate to have to decide who was 'idle' or what constituted the 'idle rich'. There are, after all, far more people who are not Paris Hilton than people who are.

21   HARM   2007 Jun 21, 3:39am  

I would personally hate to have to decide who was ‘idle’ or what constituted the ‘idle rich’.

Well, technically that's exactly what we all do every day --or, more accurately, what our elected representatives do when they decide who gets taxed how much for doing what activities. If we collectively decide that certain forms of consumption are 'nonproductive', we tax them ('sin tax' on cigarettes, alcohol, etc.). If we decided that we would prefer to have people working for a living, then we would tax employment or business income at a lower rate than capital gains. If we want to spur investment in a particular asset class --say, housing?-- then we lower capital gains tax for that asset class.

Today, we seem to have collectively decided that incentivizing passive investment income (capital gains) and hereditary wealth transfer (inheritance) is more important than incentivizing working for a living. So, today your marginal income tax rate is probably higher than the maximum c.g. rate, and definitely higher than the inheritance tax (0%). Of course, we could take Peter P's recommendation and be completely agnostic about all asset classes and activities by instituting some form of flat tax. Actually, I would consider this a vast improvement over the current loophole-ridden, overcomplicated, quasi-regressive tax structure we have today.

There are, after all, far more people who are not Paris Hilton than people who are.

People, yes. Rich people, no. :-)

22   Brand165   2007 Jun 21, 4:24am  

Paris Hilton starred in a TV show and gets hundreds of thousands just for making appearances at club openings. And she hasn't inherited anything yet, has she?

23   HeadSet   2007 Jun 21, 4:25am  

"If we decided that we would prefer to have people working for a living, then we would tax employment or business income at a lower rate than capital gains."

Good point. Perhaps that line of thought would lend credence to a consumption tax? Of course, that assumes we would be richer as a society emphasizing productivity and savings/investment over consumption. The consumption tax may also tickle your sense of fair play, as the more you spend, the more you pay. DinOr buying his Sears john boat would pay much less tax than Ha-Ha buying his yacht. Same with the bloke who buys a $350,000 3100 sqft in Virginia, verses the fellow who buys his $800,000 1200 sqft in the Bay Area.

I will also add that I have had unpleasent experiences with those who have inherited a good living. I have met Taxi Cab company owners from all over the country, The ones who actually built their businesses tend to be down to earth. The owners who inherited from Dad or Gramps tend to be elitist pigs. These pigs actually believe they are superior folk who "worked their way up" to running the company their parents had passed on to them. Maybe it all will work out. One of our competitors was an heir with a 114 cab fleet. He ran the company into the ground, so we bought up the wreckage and incorporated into our fleet.

I say tax the devil out of any inherited wealth large to make the heirs unconcerned about earning a living. Other than that, just tax consumption.

24   HeadSet   2007 Jun 21, 4:39am  

"Paris Hilton starred in a TV show and gets hundreds of thousands just for making appearances at club openings. And she hasn’t inherited anything yet, has she?"

No, if by inherit you mean dead parents. Isn't Paris Hilton the beneficiary of trust funds set up long ago, possibly generations ago? Also, I think she was well provided for out of family wealth long before she was working in TV and making appearences. I do not think she drove an old Camry while working as waitress waiting for her big break. Also, if her name was not Hilton, would anyone care about her porn movies, inane TV shows, bimbo appearences, and jail time?

25   DinOR   2007 Jun 21, 4:45am  

HARM,

Agreed. While everyone was busy marveling how much their home had appreciated on Zillow that day, they obviously weren't too concerned that their employer was actively lobbying and conspiring against them.

I mean why bother complaining about reduced company match and health benefits? At this rate I'll be retired up in Oregon with half a mil. tax free! I just need 5 more years just like... the last 5... and I'm home free!

How did Headset know that if I "did" buy a yacht I would expect to pay jon boat prices? Hmm?

26   DinOR   2007 Jun 21, 4:49am  

Is it wrong for me to wish there would have been a major prison riot during her stay? You know what I think? I think the avg. American couldn't care less about her. It's the damn media that can't stop talking about her!

27   HeadSet   2007 Jun 21, 4:56am  

"I think the avg. American couldn’t care less about her. It’s the damn media that can’t stop talking about her!"

Admit it!!

All women want to BE her

All men want to DO her

28   e   2007 Jun 21, 4:57am  

>>I say tax the devil out of any inherited wealth large to make the heirs unconcerned about earning a living. Other than that, just tax consumption.

Good luck. You're trying to fight the American dream.

More people in America believe they'll one day be rich, than anywhere else in the world. So they know that big taxes will hurt them in the end.

Just look at the movement to fight the Estate (Death) Tax - even though most people will never run afoul of it.

Optimism is a great thing to take advantage of.

29   EBGuy   2007 Jun 21, 5:04am  

I sent the reporter the mortgage details I posted a couple of days ago on the local familicide.
Looks like he did some further research and disovered a recent refi (which hadn't shown up yet in PropertyShark).
In 2005, the couple bought their three-bedroom 1918 Craftsman home on Northside Avenue in Berkeley for $640,000 from a woman who had been a patient of Kawai's, according to public records and neighbors.
Note: 80% variable rate first mortgage. Fixed seond.

On June 6, 12 days before the tragedy, the couple refinanced the mortgage on their home and took out an additional $72,500 loan, records show.

30   Bruce   2007 Jun 21, 5:06am  

HARM,

I think we're more in agreement than not.

I was interested by flat tax proposals as a part of Forbes's candidacy. Attractive as the idea may be - pace PeterP - I can't imagine it not becoming crusted over with congressional barnacles within a few years.

If we excluded capital gains and inheritance in a flat tax scheme, and provided a base exclusion of $20k or so, I'm told the rate would come to about 17%. I presume taxing estates and gains would come out a bit lower.

Hm.

31   DinOR   2007 Jun 21, 5:11am  

EBGuy,

Morbid. Morbid and sad. Morbid and sad and true.

Would doing a short sale or having a foreclosure on your credit report be worse than this? Is ANY house worth this? Is it truly better to kill your own family and then yourself rather than become (God forbid) a "renter"?

Sad.

32   HARM   2007 Jun 21, 5:15am  

All men want to DO her

Uhh... not saying she's especially ugly or anything, but Paris Hilton does not fit my own physical ideal of attractiveness. For one thing, she's got a pointy beak of a bird-nose. She also has the physique of a scrawny teenage boy. Personally, I prefer curvy brunettes.

33   HARM   2007 Jun 21, 5:19am  

@Bruce,

Although I am obviously not a *big fan* of the current Administration, it's too bad the Bush tax reform plan ended up completely D.O.A. At the very least, it might have stimulated a long overdue debate on solutions to our current unwieldy mess.

34   Brand165   2007 Jun 21, 5:25am  

I wouldn't kick her out of bed for eating crackers, but she isn't exactly Selma Hayek. Paris is rich, though. If you have ambitions about ruling a small tropical country, she might be your girl.

35   DinOR   2007 Jun 21, 5:30am  

eburbed,

Great posts as always! I especially liked the "eco-friendly" house! WTF? The aerial photo says it all. Yes, extensive use of the old "fish-eye" lens is a dead give away.

36   astrid   2007 Jun 21, 5:35am  

Brand,

I think you should aspire to a younger Julia Louis Dreyfus. Great sense of humor, very attractive, a much richer daddy and no criminal record.

37   DinOR   2007 Jun 21, 5:41am  

My second oldest sister is a dead ringer for "Elaine". Complete with squeaky voice, shallow, easily bored, ready to blame personality and yes... she DANCES like "Elaine"!! Sorry, she's been "happily married" for 28 years. As far as I can tell, at least SHE'S happy?

Every time I call, my brother-in-law is like, "You REALLY want to talk to her?"

38   astrid   2007 Jun 21, 5:41am  

If I wanted to be a banana republican dictator, I would like to have Madonna as a consort and Kate Winslet as a mistress.

39   HeadSet   2007 Jun 21, 5:49am  

I was actually joking that all men want to DO her. I would not put her as the thinking man's sex symbol.

She ain't that pretty

She ain't that smart

She got's the herpes and who knows what else.

And I would hope that women would aspire to be more like Carly Fiona, Meryle Streep, Nancy Pelosi, or Meg Thatcher. But, the grain of truth that made the joke is that it seems most women would rather be known for physical beauty and sex appeal than accomplishment.

40   astrid   2007 Jun 21, 5:55am  

I would find Paris Hilton much less objectionable if she looked like Giesele Bundchen.

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