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Dodd Frank and it's impact on business

This lie came from Phys 251

Explain the lie?

Your propaganda does not turn your lie into the truth. <<<<<<<<<<<<< what is the meaning of this lie?
 
And now Robert projects. Is he out of new attacks? Stay tuned to your local DP and find out!
I get you now. You are a flamer. Flame others. I try to give concrete true and solid evidence from a mortgage owners perspective.

Tell me how many loans you originated to challenge me?
 
You hate Frank-Dodd, which was designed to prevent many subprime loans and foreclosures.
If that is true, why didn't it target FNMA and Freddie Mac?

Loans for consumers got harder to get. I suppose in a left wingers mind that is awesome.
 
That is a super good question.

This is factual. We made plenty of subprime loans all the way back to around 1979. I could be off several years but the point is made that it was not Subprimes at all, but the regulators.

We were regulated when I was still A mortgage Broker by FNMAE. FNMAE to put it bluntly got greedy. They changed the rules. This spurred lenders above my paygrade to offer shitty loans. FNMAE made a killing until the market collapsed. Then they were virtually in bankruptcy so Bush took them over to save them.

We never minded at all if FNMAE got regulated back to normal. We were caught by surprise by their change in the rules. But when one got changed, one goes along.

In my particular case, I busted my tail trying to keep people away from poor loans. I gave them the best available. And we were always heavily regulated in CA.

Dodd Frank is a shit show is all it amounts to. It was invented for Democrats by Democrats and they told the republicans to go straight to hell.

Republicans wanted FNMAE to be regulated and leave us alone. If FNMAE would not buy the loans we would not offer those loans.

This is the utter true story. The FNMAE probably did not get regulated by Dodd Frank but I am not declaring that to be true. If it was regulated, I did not find it out.
"Dodd Frank is a shit show is all it amounts to."
Agreed.
Dodd-Frank was falsely claimed as solving the 'too big to fail', it did little else but exasperate this problem.
Dodd-Frank's regulatory demands increased the cost to banks of complying with those regulations, which in turn forced the consolidation of smaller, typically lower risk banks with lower risk behaviors, into large banks with higher risk behaviors, so Dodd-Frank ended up increasing the the 'too big to fail' risk and problem not decreasing it.

The small bank consolidation is easily predicted if one lives in the real world. Clearly, the Democrats in congress of that time weren't (as if they ever are).
 
You need to start at the beginning and not at the end.
FNMA and Freddie when I was in the Mortgage and Appraisal business created approved forms and approved loans to market. If Fannie or Freddie would not buy the loan, that they themselves ruled over, the lender was saddled with a lower bank account and no buyer for the loans.

The little told secret is how the mortgage industry really functions and how they make money.

It is no secret at all yet is barely ever mentioned.
I created loans for those wanting loans. I had to select said loan from a sheet of loans. I played no role in the creation of the loan sheets and their contents.
Say you sent me rate sheets. I would study your rates and for my clients pass to them the best of the best deals. It makes more sense to extra please customers than hand them crap. Customers were rarely ever experts so the dumb lender could get more profit from setting them up with a poor loan.

And we all know there were lenders doing that daily. However those kind of lenders end up making the loan creaters angry since they do not only screw the customer, they try to do it to the lender as well.

Give you a true example. Mary Lou owned a mortgage firm but she was not a licensed Broker. She paid a broker to let her be covered by his license. They were both crooks in other words. Mary Lou hired a woman who came in to change the figures on the borrowers income tax forms. She could cheat the best. I only learned of it after her and Mary Lou got caught and in deep trouble with the law.

Mary Lou and this woman were making it a habit to fake tax returns to help the customer get the loan. Which made Mary Lou a lot more profit.

Say you owned an auto repair shop. They are self employed. We always paid closer attention to them than wage earners. They could fake things well. A wage earner is handed forms and can't fake those. We also double checked with his own employer.

For the Self Employed, the only check is on the accountant. Accounts do lie at times.

Anyhow, when poor loans are delivered to borrowers, early they appreciate it. Later they learned how they got screwed over. And then they report to the law or the regulators. And all hell breaks out.

Derivatives are only handled by the highest of the high money managers and not down at the loan level that deals with customers. Even the wholesalers are not involved in Derivatives unless they are massive in size.

When Countrywide Funding was still in operation, they were so huge they made deals with Fannie or Freddie to profit more. And at that level they could have got involved in Derivatives. I never learned if they did or not.

The entire industry did not melt down because of random fraud by the mortgage brokers. Brokers in our area have large pools of lenders for various situations. Other than the effective death of stated income and interest only loans, not much has changed on the brokers' side. Most lenders now do require that you use their approved appraisers and those appraisers have to come from out of the area because there was too much you scratch my back, I'll scratch yours before 2008 among brokers, appraisers, and closing agents.
 
The entire industry did not melt down because of random fraud by the mortgage brokers. Brokers in our area have large pools of lenders for various situations. Other than the effective death of stated income and interest only loans, not much has changed on the brokers' side. Most lenders now do require that you use their approved appraisers and those appraisers have to come from out of the area because there was too much you scratch my back, I'll scratch yours before 2008 among brokers, appraisers, and closing agents.

That is what i am talking about. I have in my career owned Real Estate companies (2) One Appraisal company and one Mortgage company. I had by law to be fully versed in all 3 organizations.

I learned so much about Fannie Mae and Freddie by hands on experience, schooling in college plus added schooling. I once flew from CA to VA for courses at Tysons, VA on the Mortgage business. That was the longest distance for schooling I had.

It was not even random company fraud nor random bank fraud nor random wholesaler fraud, etc. It was based on the rules laid down for lenders by the FNMAE and Freddie Mac. Fannie mae appeared to be the highest authority.

I believe it was Franklin Raines of Fannie Mae that got super greedy.

And led Fannie Mae to disaster.

Raines was a good Democrat so the powers of the Democrats in congress protected him trying to not have him held accountable.

Then Raines got sued for hundreds of million dollars.

 
On comments about Appraisers

During the Savings and Loan scandals, a number of Appraisers were prosecuted for fraud of appraisals and by the early 1990s Appraisers were regulated by the Feds.

I had the top license for residential as one example. I was not allowed to do shopping centers for example when federal money was involved. I did appraise one harge commercial building with the disclaimer to the owner that made it clear what my level of expertise was. He agreed since he needed it for country property taxes purposes and he got a huge knock down in his taxes due to the appraisal. I will say he did not try at all to influence me nor suggest a value.

There were 4 categories of license and I began at level 3. I stayed at that level too.

What I hear was done to appraisers and once in a while had it happen to me, I would be told a goal for the appraisal. By law I had to ignore that. I always told them I would not work to meet any goal. I would determine the actual fair market value. And at times it pissed others off, but that was the law.
 
"Dodd Frank is a shit show is all it amounts to."
Agreed.
Dodd-Frank was falsely claimed as solving the 'too big to fail', it did little else but exasperate this problem.
Dodd-Frank's regulatory demands increased the cost to banks of complying with those regulations, which in turn forced the consolidation of smaller, typically lower risk banks with lower risk behaviors, into large banks with higher risk behaviors, so Dodd-Frank ended up increasing the the 'too big to fail' risk and problem not decreasing it.

The small bank consolidation is easily predicted if one lives in the real world. Clearly, the Democrats in congress of that time weren't (as if they ever are).

I believe that as well. I never was close to being the size of a Bank. Where I operated, banks for the most part wanted other kinds of loans. Some banks hit the home mortgage market with a full force approach. Fremont Bank in Fremont, CA was that way. But it was a smaller Bank with several locations.


I see by it's page it is going at mortgages like gangbusters. It did have it's staff of appraisers yet also used outside appraisers. I do not know what they do today.

When I first banked at Fremont Bank, it was one office. It now has 25 offices. I was a personal friend with one of the Founders, now deceased, Morris Hyman. A very smart, nice, very wealthy man. His family still dominates the bank management.
 
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I get you now. You are a flamer.

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