Are Mortgage Lenders Still Greedy In This Credit Crunch Time?

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Mortgage and Lending with Core Financial Soultions, Inc

I don't know about all of you but I feel that Mortgage Lenders have made a lot of money during the last few years with the Sub Prime Boom and are still being greedy as many are closing their doors. In my opinion if many of these lenders would go through their portfolios and look at the people that have been paying there mortgages on time at their current payments that they should leave them there. If they did not adjust these loans that were only fixed for 2 or less years( I am in no means including Neg Ams in this opinion), even for just 1 year that they could lower there foreclosures rate. I say this because it would give those the opportunity to continue making payments or sell their home. I know that in the two years that they had fixed rates that they should have been able to refinance or sell their home, but most people were led to believe that they would be able to refinance. But as many have seen the Real Estate market prices have fallen and rates are higher, so neither option of refinancing or selling at this time will work. Please Comment.

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Tags:
real estate
interest rates
mortgages
foreclosures
home loans
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refinance
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first time home buyers
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Rainer
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Rick Grand
nowhere - Eugene, OR
yes, I agree with you here. I think that they should step in and "Man up" so to speak...haha. They need to work with some of these people and help solve this problem before it just continues on the downward spiral. It will probably take congress stepping in to make that happen though. 
Aug 20, 2007 06:41 AM #1
Rainer
155,621
R. B. "Bob" Mitchell - Loan Officer Raleigh/Durham
Bank of England (NMLS#418481) - Raleigh, NC
Bob Mitchell (NMLS#1046286)

It's not a case of the lenders being greedy, it's about how the mortgage markets are structured.  When a mortgage is originated it is placed in a pool of mortgages that are sold as "mortgage backed securities" and while the servicing on this mortgage may be with the company that originated it, they have no ability to change the terms of the mortgage itself.  

The MBS may have been sold to hundreds and possibly thousands of individuals and institutions who are expecting a certain rate of return on their investment.  They made an agreement and did their part.  Now they expect the people who used their money to buy or refinance a home to do their part and deliver the rate of return that they were promised.

Bob Mitchell

ValueList Real Estate Services, Inc. 

Aug 20, 2007 06:43 AM #2
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Rainer
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Paul Lefton

Simi Valley Home Loans
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