Sunday, October 21, 2007

Mortgage Fraud

I was reading an article in the Arizona Republic today about the rampant fraud that was being commited by some mortgage brokers during the bubble. Why do we pay a middleman thousands of dollars to screw us?

I will pay you 5,000 dollars to give me .25% higher interest rate then I qualify for so you can make a bigger yield spread premium. While you are at, how about you take on some hidden points in the guise of "lender's attorney fee," " document preparation fee," and " endorsement fee's".

This really is criminal, and I can't understand why this occupation has not been fazed out the way of the gas station attendant and the travel agent. There is just not reason we should be paying someone to defraud us when we can deal directly with the lender now online the same way we do with a car loan, credit card, or any other form of banking.

I hope that the credit crunch and housing collapse will be the asteroid that exterminates these dinosaurs.

Enjoy the article:

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