[Hoosier-Daddy]

I’m just a lowly mortgage broker, but even I saw that the loans that were being marketed would collapse as soon as the market stopped rising. Because I know that the consumer always falls back on “I didn’t know” and all that rot, I refused to do Option ARMs and Subprimes, because I knew, inherently, that I’d be on the hook for the consumers greed. The big banks knew better, and by the way, so did all those so-called innocent consumers. Some did in fact get ripped off, but the majority, not a chance in hell, and the Federal Government knows it.

[RockinRight]

Good analysis.

I am almost strictly A-paper now and never did much subprime, and what I did do was really more like subprime+ if there is such a thing...someone who was not a deadbeat but had a couple issues that kept them just under conforming. Some might call this Alt-A but it was subprime by virtue of the lenders that did the loans.

Option ARMS I have only done for those who have had success with them in the past as an investor or have well more than enough equity and residual income to be protected regardless. (we’re talking under 20% back-end DTI etc)

Anyway, I also saw what you did and realized things couldn’t last very long...the fact that over 40% of loans in California were stated income helped me realize just what a problem it was becoming - people just truly could not afford these homes.