05-12-2008, 10:08 PM
[quote will2000]"Sir, I have to tell you honestly that after reviewing your file, I know that you should not get a mortgage over $250,000"
"Ma'am, I'm very sorry, I would love to sell you this car but you cannot afford it. I do have a nice used car that will fit your budget..."
Don't even need the /sarcasm tags to recognize it here. Yes, some of the borrowers deserve blame for taking on too much in loans, but there were few voices out there urging restraint. Lots of advice to the contrary to drown them out; "Get in now", "Prices are just going to keep going up", and "Of course you will be making more in a few years" among other statements by would be lenders and real estate agents. And any loan disclosure I saw, while listing what an adjustable rate might go up to, was not required to list the correspondingly higher payment explicitly. Often with a "wink and nod" from the agent that of course that is only the "worst case". Now I would not be fooled, since with my math background I could work out the changes roughly in my head, but I know I am the exception.
"Ma'am, I'm very sorry, I would love to sell you this car but you cannot afford it. I do have a nice used car that will fit your budget..."
Don't even need the /sarcasm tags to recognize it here. Yes, some of the borrowers deserve blame for taking on too much in loans, but there were few voices out there urging restraint. Lots of advice to the contrary to drown them out; "Get in now", "Prices are just going to keep going up", and "Of course you will be making more in a few years" among other statements by would be lenders and real estate agents. And any loan disclosure I saw, while listing what an adjustable rate might go up to, was not required to list the correspondingly higher payment explicitly. Often with a "wink and nod" from the agent that of course that is only the "worst case". Now I would not be fooled, since with my math background I could work out the changes roughly in my head, but I know I am the exception.