Some companies were filling out false applications to ensure the credit was agreed. In Edwardsen’s case, she became a doctor with a monthly income of 6,000 dollars.
We all knew that one day sooner or later the real estate bubble would prove to be just that: A bubble.
But did anyone imagine what some companies would do—just to make a few more fast bucks?
Each time she got into difficulties, her mortgage broker would offer a new deal. From an original loan of 103,000 dollars, she now owes the credit company some 285,000 dollars even though her monthly income has remained the same.
Shame on all of us who thought that there is actually a real process behind applying and getting approved for a mortgage. An old saying in Germany is that it is better to open a bank than to rob one: It’s legal and makes you more money. I think we should say: If you are scrupulous and want to make a lot of money as fast as possible—open a mortgage bank.
Isn’t it funny that since Eron—after all those new mechanism got implemented to avoid this kind of crap—more and more companies stink like never before?
PS: My deepest apologies to the handful of companies out there which are honest, ethical and still do business the right way.
Tags: apologies bucks crap difficulties eron handful mortgage bank mortgage broker new deal real estate bubble scrupulous shame sooner stink
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