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Posted by: not2needy 1 year, 2 months ago
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not2needy1 year, 2 months ago
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How sad!
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One thing i don't understand.. Why would Countrywide Home Loans give this woman a 30 year 45,000$$ loan on her house in 2004, she was 86 years old! Perfect example of predatory lending, IMO! It seemed to backfire on them though.-
PsychoHosebeastComment removed: Spammer, Abusive29 Replies
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invisibleink1 year, 2 months ago
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I'm sorry but it's quite obvious that you don't understand what "predatory lending" truly is. There are such things as Fair Housing laws which state that lenders cannot discriminate against a person's age, race, or other important characteristics (sexual orientation, etc.)when underwriting a loan. Sure, an 86 year old might not make it to the end of their 30 year mortgage term, but that's not a legitimate reason to deny someone a loan.
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allesmi1 year, 2 months ago
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yea, and thats exactly what got us into this ****, in the first place, the clinton administration, deregulation so there would be no discrimination, freddie mac and fanny mae were set up so minorities could afford housing (ala subsidized housing). remember when you had to put down 20% to get a loan???
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tia1 year, 2 months ago
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Great post invisibleink. I used to be a mortgage underwriter, and there is no way I would be able to deny a loan based on someone's age and the fact that they don't have 30 years of life expectancy left! Obviously an 86 yr old won't live to complete 30 yrs, but companies are so beaten over the head with lending laws and not discriminating that they sometimes have to make loans that they wouldn't necessarily agree with.
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DilipNandi1 year, 2 months ago
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Hi, she was given a 30 year mortgage because it offered the lowest payment and it was fixed.
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That is not predatory lending. Predatory lending is when a lender or loan officer structures a loan to where the applicants equity is being stolen by excessive fees and/or interest rates. Or is given a loan program that the borrower will not be able to repay should there be an adjustment in their interest rate or repayment schedule such as a balloon.
Those are examples of Predatory Lending.-
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dolfinmum41 year, 2 months ago
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Why?!?!? OMG You cant be serious? Just because her rates stayed the same, gas, medications, food, clothes, and general cost of living has gone up in 4 years, that is why. Her social security probably never increased. She was probably not getting any outside help. That is why MANY people over the past year have been getting forclosed on. No extra money coming in. Only difference is that many of the people getting forclosed on could of taken on a second or third job. If you know someone willing to hire a 90 year old woman, that will pay with a damn, let us all know. But that is a crazy question. Asking why she defaulted. Oh brother. 30 and 40 something year old people are defaulting, because no one will increase pay even though cost of living is sky rocketing, that is why. That fixed mortgage was set on a fixed income that over the past 4 years didnt increase with the cost of living increase. Statments like that just make me nuts.
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JRGdance1 year, 2 months ago
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What world do you live in?? Just because your principal and interest is fixed, doesn't mean the homeowners insurance and taxes won't increase, besides everything else, food, gas, everything!! Apparently, her social security wasn't enough. My motheris on social security and has a paid off house and barely gets by.
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zoopabug1 year, 2 months ago
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Obviously the bank then needs to find a different reason not to give the loan. The bank's first duty is to be fiscally responsible to the stockholders. That duty overrides all other considerations. If after due diligence it is determined that only a moron would approve a 30 mortgage to an 86 year old woman then you don't approve it. If some liberal idiot in the govt. says you're being discriminatory, let him. The bank should never have yielded to pressure and made a bad decision.
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And this loan was definitely a bad decision.-
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RyanFantana1 year, 2 months ago
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They cant. The Congressional Housing Act that was mentioned earlier not only prohibits you from discriminating by race, age, sexual preference or whatever. It also doesnt allow you to decline the loan regardless of income or credit history. There are also enforcement procedures against banks and lending institutions who dont comply with the act. Hence, a large reason why were in our current dilemma. Was this act repealed in this monstrosity bailout bill. . . of course not.
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apryk1 year, 2 months ago
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Hi,
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I feel so bad for this woman! I have been in the mtg business for 8 years and trust me - we are not all out to get people and take advantage of them. That being said - anyone over the age of 62 is able to apply for a reverse mtg that will enable them to no longer make payments on their property. I could spend alot of time going into it here, but the bottom line if if you are 62 or older - pls look into this and if you need help pls let me know and I can get you to the right person. I make nothing on giving you info your getting you to the people that can help you - I simply want to help. Please email me at processingcolo@aol.com. I can help if you let me. That being said - yes the family should have been there for her - and yet we don't know their take on this - not that it would make much difference right now - she felt she was trapped an that means no one was there for her family or not. -
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kids20081 year, 2 months ago
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The mortgage company is required to take an application for whoever applies. It would be discriminatory to not take one based on age, race, religion, gender, etc. A 90 year can apply for a 30 year mortgage and if they meet the income and credit qualifications, we have to give them the loan.
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apryk1 year, 2 months ago
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Hi,
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I couldn't figure out how to do my own entry - so I am replying to yours - I have no issue with your comment. Ok first of all Covette0719: You say you are an ex appraiser? How is it that you have absolutly no clue as to how a reverse mortgage works? When a person over the age of 62 applies for a reverse mortgage - they A) go through mandatory counseling on the issues of exactly what the reverse mtg is. B) Once applied and accepted/ closed - there will never be another payment made on that house (unless they need to secure a 2nd mtg to help cover what the pay off on the 1st and 2nd will not cover - equity wise) on the property. I have no clue where you get your info, but pls rethink the source. Now that being said the borrower has to stay in the property for the reverse mtg to be in effect. If the borrower is no longer able to stay in the property due to passing away or being placed somewhere else to be cared for, then the inheritatants (ie; children, trust, etc) have the option to seek regular lending choices to pay off the reverse mtg, and keep the property in the family or sell the property. If they choose not to do that, then the property will revert to the forclosure process. Also, regarding the negitive am issue - Yes, the property will incurre negitive am issues, month, year after year - but the amount that the property appraised for when the reverse mortgage was done is the amount that the loan can never supceed. Meaning - If for example your reverse mtg appraised value came in at $ 200,000.00 and you went X amount of months or years on the reverse mortgage and come the end of that term and you are looking to sell it, refi it or let it go into forclosure then let say that the negitive am has put the loan amount owed up to $260,000.00 - this means when the reverse mtg was done the goverment took out a insurance policy on this property that would kick in and cover any balance that was over the appraised amount - so the borrower or anyon heir will never pay that the government has come in and said that you will never pay higher than the org appraised value of $ 200,000.00 no matter how much neg am is on there.-
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corvette07181 year, 2 months ago
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As I said I am not a mortgage or loan officer, but I did go out on enough appraisals to see that elderly people were being preyed on by some companies, offered reverse mortgage loans to replace a roof that did not need replaced is a prime example. I do understand the concept of the reverse mortgage, but in all fairness do you think an 86 year old lady understood all that was being told to her? I am not saying all mortgage brokers were doing this, but I did come into contact with some that were just out to make a buck. Luckily these same companies are being investigated.
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BERTHAB1 year, 2 months ago
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FYI
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Banks cannot discriminate on "age" when issuing a loan. I was shocked to learn that my parents were able to secure a thrity year mortgage ate age 80. My parents lost their home during Katrina......a home that they had lived in for 45 years and that was paid for. They wer fully insured and got the maximum on their flood insurance The insurance money was not enough to repair.rebuild or purchase new home, The happened to a lot of people...a lot of ederly lost home. Although my parent got a standard loan, SBA (through the Fed Govt) was issuing many to hurricane victims,......and many of them were ederly -
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whoknew621 year, 2 months ago
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In reply to the very 1st comment. "Why would they lend an 86 year old woman , a 30 year loan. You could not get a better example of why this country is in the crisi it is in. Not to say I can predict the future. But this small business man told those near to him,,we will be in a Depression,,NOT a ression, not too far away from now. That was over two years ago.
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I could care less why she needed the money. For those that think she is the crooked one? OH well. You do not get it. Quite simply, the banks decided they would steal as many homes as they could,,and it backfired on them. I could tell you plenty of other stories about Liscense to steal practices lenders use, but the main focus seems to be on the Home forclosure thing. More to it, but that will suffice. At this point, these liscensed convicts had no other choice but to give her the home,do the right thing, as it is a big story, and at an Important time. (The election still has not been decided.)
BUT, what gets me? Is though wall street and these Political jerks, try to talk in a manner, that the public in general, will not quite understand. Not only did they rob once, But with 2 months left in office, this clown says,,lets getum again, and finish off the seperation of the classes. What does the American public do? It allows it to happen. DUH!!! OKAY,,WE HAVE TO DO WHAT YOU GUYS SAY,,AND FAST,,CAUSE YOU SAY SO??? Are you freaking kidding me?? Beliving these BS, that this is going to start wonderful lending practices,, and was nessessery. There were PLENTY of alternatives. There is NO rush. And Giving more money,we do not have,, is not the answer. This just gives the rich enough time to dump there garbage, the inevitable comes regardless with this plan. Though I am not sure this many years of robery by those in power could be reversed. Not for quite a while at least, and with Ethical people behind the wheel.
Regards,, Discusted (PS, Jessee Ventura? I think I need to read your book, Dont start the revolution without me.) I wonder if these basturds feel for what theve done to the latter year memories of this 90 year old woman, that already made it through one depression. -
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lynn651 year, 2 months ago
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the bank gave her the loan knowing they would end up with it anyway more then likely..and were is her family was a good question..prouble the reason she needed the loan. to bail someone outta trouble..our banks dont work to keep our familys in homes they work to take what helps them..our country has come down to you gotta kill yourself to get any help..there should be stricter guide lines on loans to eldrly people and shouldnt be against the only home they own knowing they will be homless at this age..i hope the pencil pusher on ths loan is happy with the results..
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baddaughtr1 year, 2 months ago
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not2needy....if you truly are a retired social worker I'm afraid to know where you got your education and would not want you as my worker...especially if I were 86. Giving a 30 year mortgage to an 86 year old woman is called 'equal lending opportunity'...not "predatory" as you say. Had she been told no - she could only get a 10 year mortgage because of HER AGE (Helloooo) - that would be discriminatory. Don't preach what you don't know. Would you deny her assistance because of her age?? I don't think so...and if you did, I would LOVE to be her attorney.
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tessti11 year, 2 months ago
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A mortgage company cannot discrimate against someone at least of legal age to sign a contract. Being 86 has nothing to do with getting a mortgage. Property value and creditworthiness are the two biggest factors to qualify for a loan.
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funchsr1 year, 2 months ago
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People, I worked in a loan "workout" department, and I can say that some banks usually do what they can to make a deal with the creditor because they DON'T want to take the property.
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And the person saying that the bank cannot discriminate because of age is correct. If you didn't know...non credit union banks have an alphabet of Federal Rules and Regulations that they go by.
The simple rule of thumb..if you can't afford it - don't buy it. -
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lmc18fan1 year, 2 months ago
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You cannot consider someones age when they apply for a loan, THAT is against the law. (you cannot consider age, race, marital status, etc.) Since this loan was sold to FannieMae, the lady must have met the loan guidelines at the time she took out the loan. Don't think that every loan taken out was fraud on the lenders fault. Most of those loans were sub-prime loans and those loans were not sold to FannieMae and FreddieMac. You need to do your own research considering the mortgage problems, not listen to all of the liberal news sources.
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