"Bad Credit ? Bankruptcy ?
(2008 Oct blog post)
For anyone wondering how the 2008 U.S. economic meltdown came about, they will find the podcast (mp3 audio file) at http://dorgan.senate.gov/newsroom/podcasts/ very illuminating.
Click on the link titled
"September 16, 2008 - Senator Dorgan Comments on the Economic Troubles Facing Our Nation"
If that link is no longer available, try this link, which accesses a preserved copy of the mp3 file on this web site. (Warning: The 23Meg audio file may take about a a minute to download to your computer, from either site, unless you have a very fast internet connection.)
This audio is a "Meltdown 101" presentation --- a story of how history, specifically the 1930's, repeats itself.
Lecturer: Senator Byron Dorgan, D-NorthDakota.
I saw first saw Dorgan on C-SPAN2, in September 2008, when Congress was having hearings on the Wall Street bailout plan proposed by Treasury Secretary Hank Paulson and Fed Chairman Ben Bernanke.
Dorgan was giving a flip-chart presentation on the causes of the bad mortgages and 'toxic assets', before the Senate. Senator Tom Harkin of Iowa spoke briefly after Dorgan's presentation, complimenting Dorgan for the clarity of his presentation and mentioning that it would be helpful if the general citizenry were the beneficiaries of the information in his presentation.
It's a sad story of greed, my friends. The presentation starts out with illustrative mortgage ads that are still offered on the internet and various media -- bad credit? bankruptcy? no problem! no down payment! no interest for 12 months!
As Dorgan mentioned, he went on the internet, only a few days before his presentation in September 2008, and found mortgage ads that were offering mortgages to people with bad credit and people in bankruptcy. In fact, many lenders were offering mortgages with no down payment, and no payments for 12 months.
AND THIS IS AFTER THE BIG BROU-HA-HA IN CONGRESS OVER THE 'TOXIC ASSETS' OF BANKS --- ASSETS POLLUTED WITH BAD MORTGAGES!!
In October 2008 --- a month after Dorgan's search and the Congressional hearings and vote on the bailout/rescue plan --- I did a web search on the terms
I got 4,570,000 hits on the first Google query, and 765,000 hits on the 2nd Google query. Many of these were ads --- not just articles discussing these issues.
You can click on either of the two sets of keywords above to quickly do the same query now. You can check the current number of hits --- and, more specifically, go to the 'bad credit', 'bankruptcy', and 'no down payment' web pages of specific lenders.
And there were even "sponsored links" (at the top and right sides of the Google query pages) that lead to web pages of companies offering mortgages. Many of these sites STILL have 'bad credit? 'bankruptcy? --- no problem! no down payment!' pages somewhere on their site.
Note that even if some of these sites are "legitimately" trying to help people with poor credit purchase a home, there should be laws that the loans they generate are not to be packaged and re-sold to investment banks. In other words, these loan originators should be required to hold the loans until they are paid off --- or defaulted.
Let's make 'em famous. Following are some of the names and web-sites of lenders that I have found via the two queries above.
You can click on a name to quickly determine if that web site or page is still available --- and see the advertised terms of the offered mortgages.
If I can find names and photos of executives and board members, I will post them here --- as I find time.
"Toxic" Mortgage Lenders :
(in numero-alphabetic order by company or site name)
1. Mortgage Lender,
Location, Contact info
|3. Photos/addresses of execs||4. Notes and quotes|
1st Guaranty Mortgage
Address unknown. State Licensing?
|Names not readily available. Contact 1-866-958-9996 or 954-776-3333||Addresses not readily available.||"Poor credit – we can help! Bankruptcy – we can help! In foreclosure – we can help! Get pre-approved in less than one hour." (2008 Oct)|
Names not readily available.
"We are often asked: Why can't I just call you on the telephone?
Because, we want to keep everything in writing. That way there are no misunderstandings. If it is written, it is an exact record of all of our communications!" EGM Services, Inc
P O Box 430
Seville, FL 32190
Toll Free Info Line 1-877-597-5047"
|Addresses not readily available.||"Horrible Credit - You may have been turned away elsewhere, but everyone is welcome here!" (2008 Oct)|
|Bad Credit Alliance||Names not readily available.||
Addresses not readily available.
"All bad credit personal loans, home loans, credit cards, and auto loans are now accessable for USA residents in all 50 states."
|"Even if you have been discharged from Chapter 7 or 13 bankruptcy, gone through a recent divorce or have current bad credit problems, our lenders can still help you refinance your mortgage!" (2008 Oct)|
|Bad Credit Loan Services||Names not readily available.||Addresses not readily available.||"You don’t have to worry anymore about your credit. Regardless of your credit score or history, you’ll be able to obtain all the finance you need. ... If you have bad credit, no credit or even a past bankruptcy, you can still get the loan product that you want with immediate approval." (2008 Oct)|
Good guys or bad guys?
|Names not readily available.||Addresses not readily available.||
"Zero down payment or 100% financing ... No Cash needed for
down payment" (Oct 2008) However, on About-Us page:
"While the mortgage industry as a whole remains
embroiled in the fallout from the sub-prime lending meltdown,
ERATE can hold its head high in the knowledge that it chose
not to participate in questionable sub-prime lending practices
but rather maintained its focus on the large segment of consumers
and lenders who could withstand the legitimate, long-proven
underwriting standards that had been the hallmark of the mortgage
NOTE: No-down-payment mortgages are practically the definition of sub-prime mortgages. These clients are unlikely to be able to keep up with payments.
|Five Stars Mortgage||Names not readily available.||Addresses not readily available.||
"Two great programs for people with bad credit are:
- FHA can be used for Purchase or Refinance loans.
- USDA Rural Loans" (2008 Oct)
3451 Hammond Avenue
Waterloo, IA 50702
Also KY and AZ addresses.
|Names not readily available.||Addresses not readily available.||
"Loans with little or no down payment" link on left of pages.
GMAC became Ally Bank.
Home Mortgage Match
HomeMortgageMatch is a sponsored link on Google. (2008 Oct)
|Names not readily available.||Addresses not readily available.||When I specified that I wanted a less than 5% down loan AND that I am in bankruptcy, this site provided me with links to|
|i Credit Central||Names not readily available.||Addresses not readily available.||"we offer a variety of FHA loan programs to assist you in making your first time home purchase decision - even with bad credit problems or past bankruptcy." (2008 Oct)|
Doug Lebda, Chairman and CEO
David Norris, President, LendingTree Loans
Others: Bob Harris, Darren Beck, Scott Cammarn, Keith Moore, Matt Packey CFO
|Although LendingTree has warnings, like the following, about no-down-payment loans, one has to wonder if their loans are packaged and sold to investment banks. "Before choosing a no-down-payment loan, you should consider both your own personal situation and the state of the housing market. ... If you were to choose a no-down-payment mortgage and the price of houses were to drop in value, you could find yourself in the position of owing more for your home than it’s potential resale value."|
|"Dana G., Senior Mortgage Banker"||Addresses not readily available.||"Today, it's common for people to put as little as three percent down on their new home. ... The FHA Express is a mortgage that only requires a 3% down payment. ... By not putting as much money toward a down payment, you can use it for other things such as paying off or consolidating debt." (Oct 2008)|
Think Mutual Bank
Branches: Rochester & Edina & St. Paul, MN ; Kansas City, MO ; Oakbrook Terrace, IL
Customer Service: 1-800-288-3425
|Paul Mackin, CEO ; Kevin DeVore, Chairman of Board ; VPs: Tom Floyd, Dan Beck, Cheryl Schaefer, Steve Spohn, Kirk Muhlenbruck, Mike Snyder||"The no down payment mortgage has been designed to assist first time home buyers and low to medium income families with the purchase of a home. ... Interest rate and payment are constant for the term of the loan. ... 5 or 7 year balloon loans" (constant AND balloon? contradictory?) (2008 Oct)|
Smith Mountain Lake, VA
Phone (540) 719-1115
Toll Free (888) 648-1714
Bob Gammache, CMPS
(Certified Mortgage Planning Specialist)
|"No down payment loans are my specialty." (2008 Oct)|
Wells Fargo Home Mortgage
Homebuying or Refinance: 1-800-525-3880
|Richard M. Kovacevich, Chairman ; John G. Stumpf, President and CEO ; VPs: Howard I. Atkins, CFO ; Richard D. Levy, Controller ; Michael J. Loughlin, Mark C. Oman, James M. Strother ; Carrie L. Tolstedt||
"Don't have enough for a sizeable down payment? Wells Fargo Home
Mortgage provides solutions that address the needs of homebuyers
- Are first-time homebuyers whose high rents left them strapped for cash
- Have low-to-moderate incomes and few cash reserves"
(Oct 2008) (I thought Wells Fargo was one of the more responsible lenders. This sounds rather irresponsible to me.)
And the list could go on and on and on.
Here is a May 2008 Forbes article (by Maurna Desmond), which is titled 'No Down Payment? No Problem.". It gives some more information on how this sorry state of affairs is continuing, even after the subprime mortgage problem revealed its ugly head by early 2008.
Comments on the list/table above :
I hope to eventually add the names of other seemingly unethical and predatory and downright traitorous mortgage lenders to this table.
I hope to find time to do follow-up web searches on the names of CEOs and other officers in these corporations --- to post information that would be helpful in determining what specific damage, if any, these people may be doing to our nation and to our financial system and to the debt load of us taxpayers.
Personally, I think most of these people are traitors to this country and they do not deserve to be called "fellow citizens". By their actions, they have given up their right to citizenship. They should be given a parachute and a canteen of water and a plane trip to an Aleutian island, over which they will be required to bail out. Then it is Survivor time, for the rest of their sociopathic lives.
They deserve to have their names and pictures posted on walls-of-shame all over this country. In my mind, their images are to be classified along with such historical personages as Hitler, Stalin, Sadam Hussein, Osama bin Laden, and various serial killers.
In fact, I will add images (or links to images) beside the names of executives above --- as I find time to find photos of them.
It is very sad to think that there is a very real chance that these people may be allowed to continue to provide the basis of more 'toxic assets' --- to be packaged and sold to banking-investment institutions.
The last 8 years (2000-2008) have been a debacle. I do not see how history could judge Congress and the Executive branch to be anything other than the Worst Of All Time (WOAT), if they allow these practices to continue.
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Posted 2008 Oct 29.