How To Throw Money Away
There's a theory in economics that each person (or business) will act in accordance with their own best interests. Over the last few years, several mortgage lenders have torn this theory to shreds. At every step they've made illogical decisions that have cost millions of dollars.Their first mistake was in making stated interest variable rate loans. As one loan officer said at the time, "We're making the foreclosures of tomorrow". It was obvious to everyone. If a borrower cant substantiate their income, there's probably a reason why. Then after two years the mortgage payment amount was set to jump significantly. The loan officers followed the economic theory. They made their income on points and closing costs at the time the loans were made. Then they sold the loans to investors Read more