Or somewhere over the rainbow!
Dorothy and her husband Toto are reading the Kansas Telegram and daydreaming about buying their first home and getting away from kind Aunt Em. It’s time for you to think about moving out on your own and enjoying the American Dream. But unlike their forebears, they haven’t saved money or been able to establish a career, when Halleluiah sees an ad for No Place Like Home Realty that proudly proclaims … No down payment, easy monthly payments, and even a brand new car in the store. garage. .
Unknown to them, somewhere in the highest places of political power, legislation has been put in place that vastly expands the loan programs available to help borrowers buy a home with no down payment, less than perfect credit, and even no verification of income or assets.
Elsewhere, Really BIG MONEY makes the decision to make these riskier loans through risk-based pricing (huge returns) that attracts people to a low down payment with the adjustable rate mortgage. Our political leaders and Big Money also make the decision to offer these mortgages through Wall Street, and the people who in turn would get HUGE BENEFITS from the higher returns paid on these specialty mortgage-backed securities. After all, what was the downside? Our elected officials would look good to the voters, powerful and grateful lobbyists would make huge political contributions, increase new home construction and sales would keep our failed economy alive and EVERYONE could have the American Dream.
Apparently … there was no problem!
Like in a dream, they are swept away by a tornado from their Kansas farms, black and white landscape and over the rainbow to the Technicolor Land of the Red and Blue States (OZ) (after all … it was Kansas) !
Dorothy, the old trailer and Toto land on killing the evil witch who rules the land of responsible lending and they are met with the applause of the little people, the same people who will take advantage of those declared income, without assets, without mortgage of adjustable rate. loans. Only to be hurt later. At first, little people think that Dorothy is a witch, but they soon discover that she is just like them.
Well … a little bigger!
Dorothy doffs the wicked Red Slippers witches and is magically drawn to Glenda, Oz’s rookie but self-proclaimed good mortgage broker!
Glenda hasn’t really been trained or even graduated (after all … it was the wild west you know)! Can you tell …… Clueless! But he immediately takes very seriously the desire of his realtors and clients to close quickly, in the easiest way possible. His personal desire was to meet all the requirements of fair loans, equal opportunity loans, and the mandatory desire of our elected officials to get a home for everyone. Everyone, regardless of income, credit history, available down payment, or even ability to pay. After all, Glenda didn’t want to be accused of discrimination by not offering all the shows created by The Powers That Be … apparently for the purpose of facilitating sleep. She also didn’t want to look like “She wasn’t a team player.”
After all … she didn’t create the programs, she didn’t underwrite or approve the loans, and she didn’t sell them to Wall Street. She just wanted to get them a loan.
And so it begins … Glenda Now so empowered she takes Dorothy under her “wing” and they start down the yellow brick road to the Emerald City (Wall Street?) Even though she has no idea how to get Dorothy a loan, you know you should take Dorothy to see the loan officer who lives in Emerald City.
Before traveling very far, Dorothy meets Mr. Big Banker, Ms. Nationwide Builder and The Real Estate Team. Desperate for answers, knowing that all is well as long as the houses are sold and the commission checks are paid, they all exchange business cards and decide that only the Wizard can grant their individual requests.
On the way to the Emerald City, Dorothy and her friends are hampered and threatened by the Wicked Witch of Economic Security. At the sight of the gleaming towers of the city, the Witch puts Dorothy, Toto and the others to sleep. The witch keeps singing, the economy is strong, there is no recession, what a subprime debacle and what a housing bubble! Despite these guarantees, everyone has visions of massive foreclosure, bank failures, economic collapse, the collapse of our financial institutions, and the wholesale liquidation of America to sovereign wealth funds (YUP … foreign)!
Walking like a horrible dream (or it was) Dorothy, Toto, the real estate team, the Nationwide builder and the great banker make their way to the Emerald City fighting with the nightmare they had been living …
As you enter the Emerald City, do you see the wizard (he looks a bit like Henry Paulson)? hidden behind a curtain, and can’t seem to get their attention. It seems they weren’t dreaming of the rallies because he’s busy bailing out Wall Street, the investment houses, the big banks, and most of America’s mortgage lenders.
Waking up like it’s a start … Dorothy and Toto get on the real estate team balloon and sing Get Up for Home …
There is nothing like saving, there is nothing like saving, there is nothing like saving!
In Kansas, Dorothy and Toto are faced with the daunting task of finding a good job after repeatedly outsourcing their positions, but they are determined to save money and buy their dream home, even if it’s just a trailer.
Footnote: The so-called mortgage crisis has actually been a manifestation of the greed of big business and the failed policies of our political leaders.
If you are looking for answers or where to assign blame … Look Up!
Remember … your mortgage broker did not create the programs, did not underwrite or approve the loans, and did not sell them to Wall Street. They just did what the politicians and organizations like Big Money wanted, they got them a loan