Skip navigation
MOST POPULAR RELATED TAGS
  • TOPICS
  • SECTORS
  • COMPANIES
 

  Current Housing Indicators
CURRENTPREVIOUS
Existing Home Sales4.49m4.74m
New Home Sales309,000344,000
Housing Starts583,000477,000
Building Permits547,000531,000
HMI9UNCH9
Existing Home Prices$170,300▼ (annually)$199,800
New Home Prices$201,100▼ (annually)$232,400
 
Realty Check Video Gallery
The USDA loan program is suddenly gaining steam, reports CNBC's Diana Olick.
Another government agency is guaranteeing loans, with CNBC's Diana Olick and the Power Lunch crew.
 
HOMEBUILDERS TOP 10 INDEX
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...

REALTY CHECK VIDEO

» More

Current DateTime: 04:27:05 23 Nov 2009
LinksList Documentid: 30871294
Expiration DateTime: 11/23/2009 4:30:34 AM

RSS FEED

» Help

Current DateTime: 04:27:05 23 Nov 2009
LinksList Documentid: 30871303
powered by digg

Realty Check

Text Size
Jun.16
11:05 AM ET
Monday, 16 Jun 2008
Senators As Confused Borrowers? Don't Insult Our Intelligence

Friends of Angelo

For many many months now I’ve been suggesting (that’s a nice word for it) that in addition to plenty of predatory lending during the housing boom, a lot of folks just plain didn’t take the time to read their paperwork or even ask when exactly their adjustable rate loans would adjust.

I’ve been told, well, these mortgage documents are just too hard for most folks to understand, and most borrowers don’t know what questions to ask. This whole housing crisis is really just the lenders' faults, right?

Am I now to lump some U.S. Senators in with those confused borrowers? First we hear about the member of Senator Barack Obama’s campaign team who got a “sweetheart” loan from Countrywide [CFC  Loading...      ()   ]  , and then kind of had to resign because it was all so darned unseemly. That fellow, Jim Johnson, is also a former CEO of Fannie Mae.[FNM  Loading...      ()   ]

Apparently Countrywide has a VIP program, known as “Friends of Angelo,” where the lender gives certain people better deals, maybe shaves a point or something, simply due to who those certain people are, basically saving them all thousands of dollars.

Now how about Senator Chris Dodd, Chairman of the Senate Banking Committee, who has been spearheading the Senate’s housing rescue plan? Or Senator Kent Conrad, who is a member of the Senate Finance Committee? They got the deals. Conrad put out a statement saying, “Although I did not ask for or know that I was receiving a discount, and even though I was offered a competitive loan from another lender, I do not want to have received preferential treatment." Conrad now says he’ll donate $10,500 to charity (Habitat for Humanity) and refi his loan (good luck with today’s mortgage market!).

Senator Dodd’s statement reads: “As a United States Senator, I would never ask or expect to be treated differently than anyone else refinancing their home.”

So am I to believe that these high-ranking Senators, and a former Fannie CEO, didn’t read their loan documents to figure out that they were getting a special deal?? Did they not know enough about how mortgages work to figure it out? And why would Mozilo give these folks a special deal if he didn’t expect them to at least know about it??

The Senators are claiming they had no idea. Come on. I realize I’m supposed to accept that all those subprime borrowers didn’t understand their loans, but to accept that these well-educated leaders of our government didn’t--well that insults my intelligence, and every borrower’s out there.

Questions?  Comments? 

© 2009 CNBC, Inc. All Rights Reserved

Tools:
PrintEmailAdd This share icon
Next Post
  • digg share
ADD COMMENTS
Remaining characters


Current DateTime: 01:36:01 23 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 01:00:28 23 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 01:45:44 23 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 01:00:28 23 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters