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Getting Rich on Government-Backed Mortgages

By Patrick following x   2018 May 26, 5:20pm 656 views   18 comments   watch   sfw   quote     share    


https://www.bloomberg.com/news/features/2018-05-24/small-time-bankers-make-millions-peddling-mortgages-to-the-poor

In his corner of American finance, where hard selling meets hard luck, Angelo Christian is a star, and he looks the part. He’s wearing black caiman shoes and a Bordeaux-red silk shirt, tight and open wide at the chest. His dark widow’s peak is slicked high with gel. He has 180,000 Facebook followers and a budding YouTube network, where he shares original videos such as “How to Master Your Mind” and “How to Manage a $50 Million Pipeline.”

Each time Christian sells a home loan, the company he works for, American Financial Network Inc., takes as much as 5 percent—$12,500 on a $250,000 loan, to be distributed among his staff, corporate headquarters, and, of course, himself. As he and his team chase more than 250 leads a week, they’re on pace to close 50 a month. Christian says he has a Lamborghini on order to go with his Mercedes. ...

Christian can do this kind of deal because he is, in effect, making the loan on behalf of the federal government through its most important affordable housing program. It’s a sweet deal: He gets his nearly risk-free commission. Taylor puts no money down. If things go south, the government ultimately bears the risk. This kind of lending echoes the subprime mortgage boom that preceded the credit crisis of 2008. Then, as now, independent mortgage companies, the so-called nonbanks, dominated the business of making loans to people with blemished credit and low incomes.
1   mell   ignore (2)   2018 May 26, 5:27pm   ↑ like (2)   ↓ dislike (0)   quote        

Socialism never works and they are socializing the losses again so be prepared Stuff like that should be shut down, the Trump administration should do something about it.
2   HeadSet   ignore (1)   2018 May 26, 6:07pm   ↑ like (3)   ↓ dislike (0)   quote        

Have you forgotten Franklin Delano Raines? Your man is a piker compared to this guy. And Raines did not just "foreshadow" 2008, he was a contributor.

Nothing good comes from government backed mortgages.
3   FortWayne   ignore (2)   2018 May 26, 6:09pm   ↑ like (2)   ↓ dislike (0)   quote        

Absolutely

mell says
Socialism never works and they are socializing the losses again so be prepared Stuff like that should be shut down, the Trump administration should do something about it.
4   TrumpingTits   ignore (0)   2018 May 26, 6:11pm   ↑ like (2)   ↓ dislike (0)   quote        

"All this has happened before, and will happen again" -- Battlestar Galactica
5   bob2356   ignore (1)   2018 May 26, 8:47pm   ↑ like (0)   ↓ dislike (0)   quote        

mell says
Trump administration should do something about it.


They are. They are rolling back banking regulations so banks can make loans more easily. To people with excellent credit only of course. .
6   mell   ignore (2)   2018 May 26, 9:05pm   ↑ like (1)   ↓ dislike (0)   quote        

bob2356 says
mell says
Trump administration should do something about it.


They are. They are rolling back banking regulations so banks can make loans more easily. To people with excellent credit only of course. .


I don't care about banks making loans in the free market to whomever they want. I care about government - which is really taxpayer - backstopped mortgages. If the banks go bankrupt let them go bankrupt and clean the system, new ones will emerge that were more prudent - that's what they should have done 2008. Instead W and Obummer together w/ the Fed ruined the free market and abolished the rule of law.
7   bob2356   ignore (1)   2018 May 26, 9:32pm   ↑ like (0)   ↓ dislike (1)   quote        

mell says
that's what they should have done 2008. Instead W and Obummer together


Sorry dude, obummer took office jan 2009. Bank bailouts were all on bush.
8   mell   ignore (2)   2018 May 26, 9:34pm   ↑ like (0)   ↓ dislike (0)   quote        

bob2356 says
mell says
that's what they should have done 2008. Instead W and Obummer together


Sorry dude, obummer took office jan 2009. Bank bailouts were all on bush.


He could have stopped them instead he undermined/abolished the rule of law with the GM bailouts and more. Both equally guilty IMO. At least Obummer didn't start a war in the middle-east, although he had many "smaller" operations going.
9   bob2356   ignore (1)   2018 May 26, 9:40pm   ↑ like (0)   ↓ dislike (0)   quote        

mell says
He could have stopped them instead he undermined the rule of law with the GM bailouts and more.


Bummer owns the gm bailout, but the banks were a done deal when he came into office

When will trump be closing down government backed mortgages?
10   mell   ignore (2)   2018 May 26, 9:44pm   ↑ like (0)   ↓ dislike (0)   quote        

bob2356 says
mell says
He could have stopped them instead he undermined the rule of law with the GM bailouts and more.


Bummer owns the gm bailout, but the banks were a done deal when he came into office

When will trump be closing down government backed mortgages?


I'm not sure he will and I won't like it if he doesn't act. Despite the fact I think overall DT has been doing a good job there are quite a few things that haven't come through yet. Gottlieb is another one, big talk about making FDA faster and bring more generics to market and so far nada. There is literally an epipen shortage but it may be that Mylan paid too many at the FDA well off. I also don't like the weakening of environmental protections wrt pesticides and others. Still I'd give him a B overall which is lightyears better than Obummer/Boosh.
11   curious2   ignore (1)   2018 May 26, 9:58pm   ↑ like (3)   ↓ dislike (0)   quote        

bob2356 says
mell says
He could have stopped them instead he undermined the rule of law with the GM bailouts and more.


Bummer owns the gm bailout, but the banks were a done deal when he came into office


The bankers ran both major parties, and both colluded in the bank bailout/relief/whatever you want to call it. RICO violations got euphemized as "robo-signing," and were not prosecuted, thus keeping crooks and incompetents in charge. FED QE and ZIRP made those crooks richer and more powerful than ever. HAMP, HARP, the alphabet soup went on and on: one way and another, the Obama administration chose to elevate bankers and borrowers and to punish renters and savers. Republicans sloganeer about markets on the way up, but switch shamelessly to lemon socialism when it suits them; Democrats pretend to represent renters and savers, but do the opposite. Just as TV networks aggregate and sell audiences to sponsors, who fool the rubes into buying the sponsors' junk food and junk products, so too the major parties aggregate constituencies and sell them to sponsors, fooling citizens into voting against their own interests.
12   bob2356   ignore (1)   2018 May 26, 10:08pm   ↑ like (0)   ↓ dislike (0)   quote        

mell says
I'm not sure he will and I won't like it if he doesn't act.


Be careful what you wish for, you may get it. You could kiss fixed rate and 30 year mortgages good bye, along with less than 20-25% down and getting a mortgage with less than sterling credit I've gotten mortgages in other countries,it's a tough slog even with outstanding credit and financial position.

Upside would be a big decrease in housing prices Downside would be most would be owned by investors and rented out.
13   MisterLefty   ignore (0)   2018 May 27, 5:06am   ↑ like (0)   ↓ dislike (0)   quote        

curious2 says
The bankers ran both major parties
Hank Paulson, a bona fide financial fraud felon, US Treasury Secretary.

14   HeadSet   ignore (1)   2018 May 27, 2:09pm   ↑ like (0)   ↓ dislike (0)   quote        

Be careful what you wish for, you may get it. You could kiss fixed rate and 30 year mortgages good bye, along with less than 20-25% down and getting a mortgage with less than sterling credit

Best outcome for all, except realtors and banks.
15   FortWayne   ignore (2)   2018 May 27, 2:23pm   ↑ like (0)   ↓ dislike (0)   quote        

Obama sold the bank bailouts. These didn’t pass till he helped it. Trivial matter at this point.

Either way we need to stop socializing irresponsible lending.
16   APOCALYPSEFUCKisShostikovitch   ignore (32)   2018 May 27, 3:17pm   ↑ like (0)   ↓ dislike (0)   quote        

Exactly.

Ike would have known what to do.

Let them fucking die in their own fucking sewerage and pissed on their gasping faces when they're going down for the third time.
17   mell   ignore (2)   2018 May 27, 3:23pm   ↑ like (0)   ↓ dislike (0)   quote        

HeadSet says
Be careful what you wish for, you may get it. You could kiss fixed rate and 30 year mortgages good bye, along with less than 20-25% down and getting a mortgage with less than sterling credit

Best outcome for all, except realtors and banks.


Agreed.
18   APOCALYPSEFUCKisShostikovitch   ignore (32)   2018 May 27, 3:38pm   ↑ like (0)   ↓ dislike (0)   quote        

It's CASH! or FUCK! YOU!, AMERICA!

Want a mortgage? HAHAHAHAHAHAHAHAHA!

Twenty-five percent down with manifest of sources of funds, fixed rate only and no downstream sale of the note.

If it was good enough for gamma and gampa, it's good enough for YOU!, AMERICA!

Oh, and by the way, no sales to PRC Army officers or any other alien criminals looking for sequestering venues for fugitive revenues of criminal enterprises.

YEAH!

And anyone fronting for them will be convicted of violating the foreign agents registration act and put away for the maximum term, including financial services launderers and REALTORs.

AMERICA! FIRST!

MAGA!
MAGA!
MAGA!
MAGA!
MAGA!
MAGA!
MAGA!
MAGA!
MAGA!
MAGA!




The Housing Trap
You're being set up to spend your life paying off a debt you don't need to take on, for a house that costs far more than it should. The conspirators are all around you, smiling to lure you in, carefully choosing their words and watching your reactions as they push your buttons, anxiously waiting for the moment when you sign the papers that will trap you and guarantee their payoff. Don't be just another victim of the housing market. Use this book to defend your freedom and defeat their schemes. You can win the game, but first you have to learn how to play it.
115 pages, $12.50

Kindle version available


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