strangegrey wrote:Home Owners
Listen, some home owners were given full disclosure...but there are ALOT of home owners that were preyed upon. Hell, in 2001, when my wife and I bought our first house....during closing, my wife caught out of the corner of her eye a very small print section that outlined how our mortgage was really an ARM...and not the fixed rate we demanded that we get. Our real estate lawyer didn't catch it....but my wife did. She, on the spot, fired the lawyer and continued the process herself.
Let me also state, our mortgage company was not selling us a sub prime mortgage...it was a mortgage through one of the most reputable banks in the country.
If this kinda of shit almost got past a corporate attorney and a computer programmer, it could have easily raped and pilaged the family of joe six pack blue collar worker.
There *was* predatory lending going on....significant amounts of it. Sorry....people that got hoodwinked by these lenders need more help than wall street.
credit default swaps and the market
Keep in mind, most of the mortgage backed securities and credit default swaps are dependent on mortgages not defaulting. If you give immediate help to people so that they *dont* default on their loans, the market will snap back....hard. Bailing out home owners makes *good* sense.
Sue the lawyer. What the mortgage company did was fraud as well. Countrywide is paying through the nose right now in a multi-state settlement probably for the reason you just described.
For true (one home) homebuyers, assistance may be fine but for real estate investors, speculators, and house flippers they need to eat it. People that are going to default no matter what have to be S.O.L. People that have been legitly duped by predatory loans need their loans fixed to a fixed rate loan. If that doesn't save them, then possibly some assistance is fine but again if they are going to default even under the new rate they're S.O.L. Subprime loans need to be abolished and lending rules tightened for the future. That's all. I'm 100% against a bailout and very cool to mortgage bailouts but I agree the mortgage bailout should be done first and the only possible bailout done at all. That would help the market out the most and the most (and average) people. It also must be a very limited bailout not a mass bailout.
As far as MBS, you are correct but they take some risk in their investment. Again, the investors are S.O.L. Grant it, a limited mortgage bailout would help them out too but not entirely but better than nothing. If they were duped, they have the money and lawyers to seek recourse. People need to be jailed for this, not rewarded.