Causes of Crime

[Tom Joad]

Originally Posted by merrylander

The banks wanted no part of it? You must be joking, for the banks it is a license to print money.

Mortgage broker finds a lender, pockets 1% and disappears

Lender bundles mortgage, pockets 2% sells security bundle and disappears.

Title company sells poor sod $400 worth of title insurance and get 80% as its fee ($320)

When I bought my first house in 1978 the bank put me through the ringer to get a mortgage. The same thing happened on house number 2 in 1986.

Then, in 2004, on house number 3 things changed. I had to deal with a "Mortgage Broker" And he acted pissed because he wanted me to go for the full amount I was approved for, instead of 40% of that amount, which was the maximum I felt comfortable with. In other words he tried to talk me into taking out a loan that would have me eating sitting on a milk crate eating Ramen noodles under a 15 Watt light bulb so that he could get a bigger commission. He didn't give a shit about whether or not I defaulted.

I said "No Thanks", but that's because I've been around the block a few times.

I can see where a lot of naive young people might think "If they approved me for that much, it must be OK".