There is a multitude of lenders in the industry with the only concern being their financial well being
Because of the massive amounts of money to be made, companies have been myopic in their priorities, focusing more on new products to present to the public to bolster their quarterly earnings.
Fast forward today and you have heard or read about prominent lenders filing for bankruptcy protection. One could easily make the mistake of viewing these companies as victims, but if one looks closely, part of the blame falls squarely on the shoulders of the banks themselves.
In many ways the banks are a victim of the very loan programs they themselves created. The rising number of mortgage defaults occurring today are from mortgage loans and programs cooked up in the well appointed boardrooms across the country.
In light of the recent developments that are now causing harm to the companies themselves, a question must be asked: Did the banks consider the possible consequences? If they did not, it points to short sightedness or even incompetence. If they were aware of this and simply wanted to “take the money and run,” it has far more sinister implications.
For the consumer, the danger lies in accepting any loan option the mortgage company presents you. Many loans can contain a shopping list of add-ons If the programs they tout can end up taking them down, It can take you and your home as well.
It’s like the stories one reads about of the hunters in the woods that end up shooting each other.
So concerned with shooting something, the hunter shot the first thing that moved – his partner. The ability to discern was overshadowed by the desire to perform.
The same analogy can be applied to the banks.
Placing an overriding priority on writing as many loans possible to “make the numbers,” some banks lowered the standards on both the programs they offered, and the oversight required. This allowed people to purchase homes whose financial qualifications might be suspect.
Because the mortgage company typically knows far more than the customer, when shopping for a loan, you must know how to protect yourself. It would not be advisable to approach a mortgage loan without a thorough understanding of the loan process.
In light of this, it makes good sense to get expert advice before you apply for your next mortgage loan. Mortgage Secrets Exposed! – Exposing the process of mortgage loan rip-off.