Andrew Coumo in the News.another lender

[Michael Tipton]

Michael,



That would really not be accurate. First, sub-prime lending has been with us for 30 years (that I can remember personally); what is new is the 80/20, no-doc/low-doc, stated incomes, NINAs, etc. types of loans.

And, sorry but those pretty much all occurred during Mr. Bush's term- it has now been 7 years since. The hard data is out there.

What is troubling me here is this:

We have appraisers (you guys do remember what you do- no?) out there making statements that are neither factual nor accurate. And this happens within an environment in which we are all trained to find out the facts before forming an opinion. So what happens? Well we just fail to find out, report wrong stuff, and then, when someone says no- that is wrong- it now just becomes "splitting hairs".

OK- I'll start.

I am guilty of actually posting incorrect information on at least one occasion I can remember.

Now let's see how many of you have the guts to say so.

Brad

Brad,

You are correct in stating that sub-prime loans have been available in the past. I recall being introduced to several non conforming lenders and their products in the early 80's at a MBA trade-show in Tampa. However, non conforming lenders at that time underwrote their products more stringently when compared to the recent sub-prime products.

As you also stated, the bulk of the current sub-prime issues are related to sub-prime products offered within the past few years (7 years per your post). The current administration has been in power for roughly 7 years.

So Brad, yes, I did not include the early non conforming products with the recent 80/20, NILD, stated income, etc.

"Splitting hairs" is one of the appeals of this forum. Have a Happy and Prosperous New Year.

 

[The Matrix]

Cuomo was a major proponent of increasing home ownership rates in the US. One of the main ways that HUD moved unqualified borrowers into houses was by relaxing HUD loan insurance guidelines...Maybe that's why FHA has a default rate in excess of 15%....( which is higher than the subprime default rate)..and yet the democratic congress has tasked FHA/HUD with helping to refinance much of the subprime mess with additional government insured loans......Yet another financial mess to be laid at the taxpayers feet....

Lender select is just one step HUD utilized to water down appraisal competence. When FHA put loan brokers in charge of hiring and firing appraisers....one could readily see that the unholy alliance between loan brokers and HUD would not have a positive ending.

 

[Carnivore]

Brad,

In my original post I made a statement based on a Official press release by the NY STate AG office. That was it in a nut shell.

I did not say or post something that was inaccurate. I admit that I did not go back and research this completely and tell the whole story. I do know these things dont happen overnight, so yes I am aware of the possibility that the current AG may not have had anything to do with the beginning. None the less he does have something to do with the ending. Thats where I got the splitting hair comment.

So I apologize for upsetting you. Next year will be much better.

here ya go:

http://chrisjeffords.blogspot.com/2007/11/andrew-coumo-most-important-man-in.html

Happy New Year!

 

[Brad Ellis]

Carney,

You did not upset me; I was merely trying to clear up an obvious misconception. And I do not accept the possibility of Cuomo not having been involved- I know that for a fact and the settlement that occaisions this payment occured over a year ago- and the current manager of this, one of the orignal AGs, provided the entire history of it last January at the FNC client conference (at which the then chief appraiser at Ameriquest was present).

That is all on the history.

Now you link is to a Cramer statement- that immediately leaves me cold. Please never quote or cite Cramer to me or even raise his name in any response to me. I think him quite an imbecile (as do so many others- including the majority in his own stock analysis business). And I'll be quite interested in the outcome of the SEC investigation of him that started after he publicly admitted to manipulating stock prices when he was a fund manager.

Some find him entertaining. I do not. I find him dangerous.

If Cuomo prevails in this latest suit involving EAP then the kudos go to him. I'm just not going to credit him in anyway for something he did not have any hand in.

Brad

 

[Lost Cause]

I thought I was wrong once, but I was mistaken.

Why spoil a good argument with the facts.

In the words of Richard Nixon: "Don't confuse me with the facts."