Comments on: Subprime Loan Proposal, Plus Some Thoughts on Brand http://www.coyoteblog.com/coyote_blog/2008/04/subprime-loan-p.html Dispatches from a Small Business Sun, 12 Feb 2012 09:39:47 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: webmaster http://www.coyoteblog.com/coyote_blog/2008/04/subprime-loan-p.html/comment-page-1#comment-10567 webmaster Wed, 06 Aug 2008 12:14:36 +0000 http://coyote-blog.com/wordpress/2008/04/subprime-loan-p.html#comment-10567 <p>Great Job<br /> interesting topic , I would like to read more on this topic and <a href="http://www.canadamortgagefactory.com/mortgage_leads.html" rel="nofollow">mortgage leads canada</a> .<br /> </p> Great Job
interesting topic , I would like to read more on this topic and mortgage leads canada .

]]> By: Anon E. Mouse http://www.coyoteblog.com/coyote_blog/2008/04/subprime-loan-p.html/comment-page-1#comment-10566 Anon E. Mouse Sat, 12 Apr 2008 03:13:56 +0000 http://coyote-blog.com/wordpress/2008/04/subprime-loan-p.html#comment-10566 <p>re: Branding. </p> <p>You got it on the nose, C. Trademark law is an amazing thing. </p> <p>Chinese toys with lead? From Mattel? ha! Stop buying Mattel!</p> re: Branding.

You got it on the nose, C. Trademark law is an amazing thing.

Chinese toys with lead? From Mattel? ha! Stop buying Mattel!

]]> By: Erik The Red http://www.coyoteblog.com/coyote_blog/2008/04/subprime-loan-p.html/comment-page-1#comment-10565 Erik The Red Wed, 09 Apr 2008 19:03:01 +0000 http://coyote-blog.com/wordpress/2008/04/subprime-loan-p.html#comment-10565 <p>There were a few, like Countrywide. I think the biggest problem was that there was no disincentive for the mortgage brokers to create crap loans. Everyone had legally CYA'd themselves to death, and the stupid morons who bought these loan packages are left holding the bag (or house, as it were). I don't use the phrase "stupid morons" lightly (well, that's not entirely true), but it does fit here. Anybody who understood how these things worked could see the train wreck coming (my brother-in-law who's a mortgage broker for one), and anyone who was going to drop a few $Billion in this sort of security should have understood it backwards and forwards and upside-down. These days Wall Street is ruled by the Quants who allegedly take pride in looking at things at a purely mathematical / statistical point of view with no attention paid to the underlying fundamentals. Wall Street handed the keys to these fools and deserves all of the pain they get as a result. That's not to say there's no value to the ultra-eggheaded analysis, but it should be tempered with a little bit of "been-there, done-that" reality check.</p> <p>But back to my original point - the brokers were just selling a product by the rules put forward by the people who created the product, and got paid everything up-front. Yes, they were doing a great disservice to their customers when they sold them loans they couldn't afford and most of them deserve to go out of business. The loan products existed, though, and as long as they existed <i>somebody</i> was going to sell them. This has happened before - if somebody sets up a system where people get paid for the initial transaction and suffer no consequences for problems in the long-term execution, you'll get a bunch of scam artists cranking out as many transactions as possible.</p> There were a few, like Countrywide. I think the biggest problem was that there was no disincentive for the mortgage brokers to create crap loans. Everyone had legally CYA’d themselves to death, and the stupid morons who bought these loan packages are left holding the bag (or house, as it were). I don’t use the phrase “stupid morons” lightly (well, that’s not entirely true), but it does fit here. Anybody who understood how these things worked could see the train wreck coming (my brother-in-law who’s a mortgage broker for one), and anyone who was going to drop a few $Billion in this sort of security should have understood it backwards and forwards and upside-down. These days Wall Street is ruled by the Quants who allegedly take pride in looking at things at a purely mathematical / statistical point of view with no attention paid to the underlying fundamentals. Wall Street handed the keys to these fools and deserves all of the pain they get as a result. That’s not to say there’s no value to the ultra-eggheaded analysis, but it should be tempered with a little bit of “been-there, done-that” reality check.

But back to my original point – the brokers were just selling a product by the rules put forward by the people who created the product, and got paid everything up-front. Yes, they were doing a great disservice to their customers when they sold them loans they couldn’t afford and most of them deserve to go out of business. The loan products existed, though, and as long as they existed somebody was going to sell them. This has happened before – if somebody sets up a system where people get paid for the initial transaction and suffer no consequences for problems in the long-term execution, you’ll get a bunch of scam artists cranking out as many transactions as possible.

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