Get ready for the crash

L98Terror

L98Terror

Club Member
Shocker sub prime lending is a bad idea, it was so irresponsible to give mortgages to people who couldn't afford them, now we will all pay.



Late Thursday, the company said it would take a charge of $61.3 million, or 19 cents a share, to reflect an increase in the number of its subprime mortgage customers falling behind on their loan payments.


H&R Block's woes will likely extend to other subprime lenders, analysts said, as borrowers with less-than-stellar credit histories struggle to keep up their payments in a higher interest rate environment.
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Jp Morgan anounces hugh losses in their sup prime lending dept as well.


Even if H&R Block has already tightened standards to address prepayment risks, defaults on loans originated in the last four to six months will worsen," Flynn wrote. "We also worry that worse-than-expected experience on new loans provides further downside risks."

Analysts said other subprime lenders may share H&R Block's woes.

"Investors are already discounting a more conservative outcome for most subprime lenders, though we think the announcement from H&R Block could further undermine confidence in the subprime sector," said Merrill Lynch analyst Kenneth Bruce said in a research note Friday.

Bruce said the slowing housing market, forecasts of rising credit losses and accelerating repurchase losses will further weigh on subprime lenders' shares.
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"Everyone's approved."

"Bad credit? No credit? No problem."

Loaning money to people who have shown in the past that they can't handle it seemed like such a good idea. :rolleyes: Who would have thought that it would come back to bite these companies in the ass?
 
Scooter70 said:
"Everyone's approved."

"Bad credit? No credit? No problem."

Loaning money to people who have shown in the past that they can't handle it seemed like such a good idea. :rolleyes: Who would have thought that it would come back to bite these companies in the ass?
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No kidding. :roll:
 
My work was up 17.7% in the first 1/2 results, that's why you have to have strict lending guidelines and not just lend to anyone
 
L98Terror said:
Shocker sub prime lending is a bad idea, it was so irresponsible to give mortgages to people who couldn't afford them, now we will all pay.
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They didn't care as long as they could sell the mortgages off to someone else.
 
A no equity loan may make some sense when housing is appreciating rapidly, but those days seem to be over for a while.
 
The only time I ever recommended an interest only loan was if the person KNEW for a fact that they would be moved out within 5 years.
 
Scooter70 said:
"Everyone's approved."

"Bad credit? No credit? No problem."

Loaning money to people who have shown in the past that they can't handle it seemed like such a good idea. :rolleyes: Who would have thought that it would come back to bite these companies in the ass?
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Ain't that the truth. :lol:
 
Hmmm...maybe someone will foreclose and I can get a good house cheap 'round here. Where should I start looking???
 
SSpdDmon said:
Hmmm...maybe someone will foreclose and I can get a good house cheap 'round here. Where should I start looking???
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um anywhere! :dontknow: No one is getting what they want for a house. Get a $400,000 house for $200,000
 
Scooter70 said:
"Everyone's approved."

"Bad credit? No credit? No problem."

Loaning money to people who have shown in the past that they can't handle it seemed like such a good idea. :rolleyes: Who would have thought that it would come back to bite these companies in the ass?
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I think it was a great idea!!!!

Now where is the list of foreclosed homes?

:)
 
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