ResMAE, a large stated income lender, announced a year ago the discontinuation of all their stated income loan programs used for self-employed borrowers. Since then virtually all sources of loans for the self-employed are all gone.

This isn’t surprising considering that most stated income loans in practice are simply fraudulent. The industry dubbed them liar loans. Bad originators and bad clients conspire to overinflated the stated income over the client’s actual income. The lenders were then on the hook for a slew of foreclosures based on fraudulent loan information.

Larry Kudlow earlier this month stated during an interview with David Walker that the Community Reinvestment Act “created subprime loans”. Larry Kudlow in this interview is really pushing the agenda attempting to help minority groups get their piece of the American Dream “caused” the subprime meltdown.

In this post-Bear Stearns bail out interview, David Walker made the connection those who originated and funded the subprime loans where not the ones taking the risk in the future. Those getting the fees are not now taking the risk - the Fed is.

Ditech Mortgage owned by GMAC Mortgage, is famous for their schlocky TV ads with a fat loan officer who always loses clients (even his own mother in one) saying, “Lost another loan to Ditech”.

These same ads pummel the viewer with the misleading, but very enticing $395 Flat Fee idea.

Ditech Mortgage recently canned that ad campaign in favor of “People are Smart” slogan which everyone should see through immediately as pandering…except the extremely stupid which clearly is the Ditech market.

Mortgage originators tell you your mortgage lock is in force when it is NOT. Lying about your mortgage lock status is a common practice to increase loan revenue or cover loan officer mistakes.

Loan officers are always trying to make the most yield spread revenue on every mortgage. Telling you the mortgage lock is placed but then not actually locking the rate with the wholesale mortgage company allows them to “play the market” with your money.

Why do originators tell mortgage lock lies?

A Florida mortgage broker found a way to rip-off people he never even met: the home seller! Mortgage broker greed reaches an all time high with this unconscionable scam.

So I was over checking my blog on ActiveRain and ran upon a Florida real estate agent who sparked this post. His comment said a buyer client was told to ask the seller for 6% in closing costs!

This is the most greedy mortgage broker tactic I’ve ever seen. I just hang my head in shame thinking we share the same profession.