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OneTruePecos posted:IOW, liar loans were fine when they were for people who didn't need a liar loan. SISA/NINA are fraud-by-design and Mozilo should be under the jail. Some people have income streams that fall outside of what traditional underwriting models account for and therefore documenting the income, while possible, can be a real pain in the rear end for both the borrower and the underwriter People who have seasoned credit and a high credit scores nearly always make their payments, regardless of how the rest of the loan looks on paper when it comes to DTI. Especially if the collateral is their primary residence.
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Dec 17, 2018 20:18
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therobit posted:Some people have income streams that fall outside of what traditional underwriting models account for and therefore documenting the income, while possible, can be a real pain in the rear end for both the borrower and the underwriter Yeah, I know. This is always the company line justifying liar loans. FICO and LTV gets you like... 90% of the way there in a mortgage risk model based solely on borrower attributes. What it doesn't tell you is how risky that borrower is in a different borrowing climate, like if, say, interest rates change, or unemployment spikes. Then you need accurate information on income and assets, not just some poo poo the broker told them to write down to pass underwriting. Just skipping that part of checking creditworthiness because it would be hard for the borrower to demonstrate it is silly. It would be like having a class of loans that didn't check credit, because some people don't have much credit history, and then pricing them the same as the 700-719 tranche, and then acting surprised that everyone with a sub-700 credit score took out one of your under-priced loans and then even more surprised when a lot of them defaulted, leaving the schmucks that bought your loans holding the bag. Countrywide and their ilk knew what they were doing when they expanded this stuff from a tiny little niche to the core of the industry.
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Dec 17, 2018 20:53
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lmao at this idiot https://www.cnbc.com/2018/12/17/gundlach-says-passive-investing-has-reached-mania-status.html Yes index funds are a bubble, buy high priced actively managed funds instead, advises high priced active fund manager.
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Dec 17, 2018 21:22
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Devonaut posted:lmao at this idiot quote:The investor made correct predictions for 2018, including a drop in stocks on rising yields and declines in Facebook and bitcoin.
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Dec 17, 2018 21:27
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Hoodwinker posted:No poo poo, idiot. Truly a modern day Nostradamus
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Dec 17, 2018 21:31
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I predict a serious rise after ligma. ligma balls lmao edit: got em
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Dec 17, 2018 21:36
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OneTruePecos posted:Yeah, I know. This is always the company line justifying liar loans. FICO and LTV gets you like... 90% of the way there in a mortgage risk model based solely on borrower attributes. What it doesn't tell you is how risky that borrower is in a different borrowing climate, like if, say, interest rates change, or unemployment spikes. Then you need accurate information on income and assets, not just some poo poo the broker told them to write down to pass underwriting. Many types of credit don't require income docs. Which is OK on A credit but not on D credit. Also borrowers with A credit and verified income with low DTI will also default under certain circumstances. If I walk out there and get creamed by a bus and become a quad, my payments won't get made anymore. Short of that, they probably will. The risk models don't assume 0% default rate, and expecting 0% defaults in any market is foolhardy. Credit and LTV will get you a lot farther than 90%. If stated income loans had remained a product only offered on A credit ir would have bein fine.
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Dec 17, 2018 22:06
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therobit posted:Many types of credit don't require income docs. Which is OK on A credit but not on D credit. I think we're mostly agreeing with each other except around the edges. I used to build these models and I can tell you just looking at FICO and LTV doesn't get you a lot farther than 90% of the way, because it doesn't tell you anything about any macro factors like interest rates or home prices, but the big point is that expanding SISA/NINA out of A credit was asking for trouble. For the Angelo Mozilos it was mostly Bad With Other People's Money, though, so full steam ahead making poo poo loans.
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Dec 17, 2018 22:33
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I've told my company before to give me a 100% LTV loan. As long as they keep employing me, they'll keep getting their payments. It's a win-win...right?
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Dec 17, 2018 23:59
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Sundae posted:Article date 2014. Guessing it's deaaaaaaaad. Current state of Nimbl: 
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Dec 18, 2018 00:19
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Couple of stories from the office: One guy has been having issues with his car. Rather than going to see a certified mechanic, he went to a family friend who only will "fix" an issue, he won't diagnose anything. So if you're wrong about what's wrong with your car, it's on you. After dropping around $600 in wrong guesses, he's decided the car is a money pit and is planning on trading it on for a new car in the coming weeks. Another person has around 60k in private loans, a 30k car note, and an apartment that costs $1500 a month. He makes about 32k a year. Recently, he realized he has a wage garnishment on his paycheck and after looking into it a bit more, finds out he actually did take out federal student loans for his undergrad and he's defaulted on them. All said and done, he now owes about 80k in fed student loans including interest, penalties and attorney's fees because of it going into collections.
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Dec 18, 2018 01:16
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Devonaut posted:lmao at this idiot I saw that on twitter this morning. His commissions will drop away completely if people switch to index funds. Somebody think of the financial advisers/active managers.
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Dec 18, 2018 01:43
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SpelledBackwards posted:Edit: I miss the startup that was going to deliver you rolls of quarters for all your laundry and vending needs. qrtrz?
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Dec 18, 2018 01:46
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therobit posted:Many types of credit don't require income docs. Which is OK on A credit but not on D credit. There’s only one way to get to a 0% default rate, and that’s a 0% approval rate.
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Dec 18, 2018 02:08
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Devian666 posted:I saw that on twitter this morning. His commissions will drop away completely if people switch to index funds. Somebody think of the financial advisers/active managers. I’ll think about putting them in a guillotine
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Dec 18, 2018 03:16
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Midjack posted:qrtrz? Less dumb. It was called Washboard. Went viral June 20, 2014 across all kinds of reporting sites as insanely stupid: https://www.gq.com/story/washboard-laundry-quarters-delivery-startup RIP June 26, 6 days later: http://valleywag.gawker.com/the-laundry-quarters-startup-is-dead-1596481798 Cacafuego posted:I’ll think about putting them in a guillotine Poor Cacafuego, thought of a guillotine and a fund manager died.
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Dec 18, 2018 03:46
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SpelledBackwards posted:Less dumb. It was called Washboard. Wasn't that basically money laundering?
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Dec 18, 2018 03:59
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Feel good story on the news tonight, somebody in the local area paid off $10k+ in Layaway today but this being Walmart there is a BWM in this little story. While interviewing one of the costumers that had her layaway paid for she stated that she was going to let her "mortgage slip" for the month so her kids could have a Christmas. Im thinking a roof over your head is a great Christmas present, I swear I don't understand people during the holidays and the need to spend way more than it is sensible on presents. I would love to know the comparison to money spent on presents vs money saved on retirement for these type of people.
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Dec 18, 2018 04:13
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Dec 18, 2018 04:16
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William Munny posted:Couple of stories from the office: That's almost exactly how it works at a dealership though. Except that at a dealership he would be out way more than $600 for all but the most minor fix. This one might be GWM. I mean, technically you can pay the dealership for diagnosis at $100/hr but in practice they never seem to do anything but read the OBD code. OctaviusBeaver fucked around with this message at 04:27 on Dec 18, 2018 |
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Dec 18, 2018 04:21
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William Munny posted:Couple of stories from the office: this completely defeats the purpose of taking it to a friend
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Dec 18, 2018 04:31
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The cheap man pays the most.
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Dec 18, 2018 04:42
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SpelledBackwards posted:RIP June 26, 6 days later: lol: quote:But at least they will be "focusing [their] energy on something ultimately more worthwhile," which would be anything. Literally anything. Lying down in the middle of the street and screaming would be ultimately more worthwhile than this.
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Dec 18, 2018 04:48
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Shouldn't the thread title be "les petite mortgage"
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Dec 18, 2018 05:09
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돈 낭비한 똥새끼 뜨레드 비트코인 투자한 바보 뜨레드
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Dec 18, 2018 05:18
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bob dobbs is dead posted:돈 낭비한 똥새끼 뜨레드 Eh, we've done worse.
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Dec 18, 2018 05:19
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Weatherman posted:Shouldn't the thread title be "les petite mortgage" Even my very rusty French tells me the thread title should be a lot of things that it isn't. But 
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Dec 18, 2018 05:26
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totalnewbie posted:Your idea of what a neighborhood should look like is colored completely by your previous experiences and where you lived. The silly part is Hickville is likely to be zoned like that, with businesses mixed with multifamily and single family housing. It's when you get to the larger cities that suburbs become a thing.
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Dec 18, 2018 06:06
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Liquid Communism posted:It's when you get to the larger cities that suburbs become a thing. I'm quoting this for posterity. I'm not sure what to do with it yet, but it's just precious.
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Dec 18, 2018 06:34
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Whenever there’s any new obviously-not-home construction around here in an otherwise residential area it’s always a church. Wonder if we could get around zoning rules with a combo church/gas station. “Fill up on Faith and Honey Buns”.
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Dec 18, 2018 13:52
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Krispy Wafer posted:Whenever there’s any new obviously-not-home construction around here in an otherwise residential area it’s always a church. A number of churches in my area have coffee shops so sure, add pumps and a car wash.
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Dec 18, 2018 13:59
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Liquid Communism posted:The silly part is Hickville is likely to be zoned like that, with businesses mixed with multifamily and single family housing. I've lived in Hicksville and in Japan and it's nowhere close. Things may be much closer just because it's a smaller town but you don't have the level of complete mixing you would find in Japan because, ultimately, these towns form with the idea that everyone is driving, which means businesses become concentrated around parking lots. That's not to say that Japanese businesses don't gravitate towards busy roads or each other - they absolutely do - but there are also lots of small stores and businesses within the neighborhoods. This is what you don't see in the US. That said, I think in the end, I don't think it's an entirely fair comparison because there are a lot of circumstances that have caused things to be the way they are for rural America. But cities... No excuse. My main point, though, was just that this idea that Japanese zoning laws create this nightmarish Edit: okay the n was a typo but I am also a little better at spelling today. totalnewbie fucked around with this message at 16:29 on Dec 18, 2018 |
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Dec 18, 2018 14:55
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One of the women that my wife volunteers with told us that had she known that we were flying up to Philly for Xmas, they would have let us drive back to Florida the (used, 2014) Porsche boxster they bought from a friend. Her husband is a “Porsche enthusiast”. She offered to let us buy the 2004 911 that they were selling and I said no. I asked why they were buying the Boxster and she said “because we’re selling the 911”. They have other cars that they drive regularly, so this is just a toy. They do make good money and they’re nearing retirement, but I don’t know how leveraged they are. I suppose they can support being Porsche enthusiasts, but we don’t have anywhere to put an extra car and can’t afford the maintenance on a Porsche, so we dodged that bullet.
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Dec 18, 2018 15:43
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totalnewbie posted:Japanese zoning laws create this nightmarish analgum of buildings Japanese porn just keeps getting weirder and weirder. I have my limits.
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Dec 18, 2018 16:24
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Cacafuego posted:She offered to let us buy the 2004 911 that they were selling and I said no. Sir this is the BAD with money thread. You need to go buy that Porsche and update this story immediately!
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Dec 18, 2018 17:50
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Krispy Wafer posted:Whenever there’s any new obviously-not-home construction around here in an otherwise residential area it’s always a church. In the Bay Area we poo poo out approximately five new 7-story office buildings for Amazon/Google/Apple/etc. for every new unit of housing. They build the things pretty much anywhere and seemingly in a matter of weeks--seriously, the rate at which they slap those things together and the disregard for any sort of planning is incredible.
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Dec 18, 2018 18:39
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Vox Nihili posted:In the Bay Area we poo poo out approximately five new 7-story office buildings for Amazon/Google/Apple/etc. for every new unit of housing. They build the things pretty much anywhere and seemingly in a matter of weeks--seriously, the rate at which they slap those things together and the disregard for any sort of planning is incredible. which level you at
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Dec 18, 2018 18:41
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bob dobbs is dead posted:which level you at 69. I will support anyone willing to build housing, be it public, private, for-profit, nonprofit, shanty towns, whatever. Also willing to seize existing office buildings or Palo Alto mansions for conversation into multi-family dwellings either by function of law or at gunpoint.
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Dec 18, 2018 18:54
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Vox Nihili posted:In the Bay Area we poo poo out approximately five new 7-story office buildings for Amazon/Google/Apple/etc. for every new unit of housing. They build the things pretty much anywhere and seemingly in a matter of weeks--seriously, the rate at which they slap those things together and the disregard for any sort of planning is incredible. Get on China's level: https://www.theguardian.com/world/video/2015/apr/30/china-build-57-storey-skyscraper-19-days-timelapse-video
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Dec 18, 2018 18:56
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Oh God, the bay area. I was on the Los Altos planning committee for a few years and you can straight purchase FAR from the city. Not a transfer from another site but just an outright Defy The Zoning Requirements for $$$ Let it all burn
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Dec 18, 2018 19:01
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