Date registered: Apr 2004
Location: The BlueGrass State
Mentioned: 0 Post(s)
Quoted: 2 Post(s)
Yep, the marketing departments did very well. They target marketed the groups that were most likely to have less income, more sporadic work and higher concentrations of uneducated folks who did not/would not understand the terms of the loans.
By the way, talking to my bank guy who just left Countrywide. Interesting "bonus" schedule for the mortgage writers. If you had a client who scored and qualified for say a 7% loan. The writer got a bonus for each 1/8 point he wrote the mortgage ABOVE that qualifying amount. So your good buddy got bucks for jacking your rate, even thought you qualified for X rate.
Banks don't allow that practice from my understanding [though nothing would surprise me].
Being smart is knowing the difference, in a sticky situation between a well delivered anecdote and a well delivered antidote - bear.