Monday, November 22, 2010

Mortgage Companies, DO Income Verification

Apparently the banking and real estate industries
have NOT learned their lessons. The Great Recession
of 2007-2010, largely fueled by strange, unsecured
loans and other exotic "financial instruments" (which
yet were profitable all along the transaction highway)
is not quite over, despite good numbers in the markets.
If only the extremely well-to-do feel no pain, but the rest
(the majority) are suffering, claims of recovery are specious,
to put it politely.

Over a week ago I heard a quite alarming radio ad over
Chicagoland's CBS feed, promoting "the biggest no-brainer
in the history of Earth! Get FHA refinancing of your
house note, no income verification required!" (--No brainer,
indeed.) I contacted an executive at the station complaining
why this was an ad which under fair practices, truth in
advertising law, etc., should not have been accepted.
I was told no income verification loans ARE/WERE legal,
he'd had one in the past, etc.

Now it shouldn't have been necessary to remind this nice
gentleman that, just because HE didn't default, the
practice is therefore economically-speaking, more widely safe.
But I did. He agreed to check out my concern, and I hope
he has.

Hey, mortgage companies, do your damn job! DO INCOME

It's the economy (AGAIN), stupid.

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