Reply by MichiganAl on 7/20/08 1:02pm
Msg #256056
"Confessions of a Subprime Lender. - In his new book, author and ex-lender Richard Bitner owns up to some of his worst mistakes, offering an inside look at how his firm issued bad mortgages."
What exactly is he confessing to? Seems he just blames everyone else. Underwriters, scam artists, and a broker. Not much of a confession and not much of a revelation, just old news to me. I mean, underwriters were too loose and brokers lied??!! Oh the shock of it!!
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Reply by SharonMN on 7/21/08 8:28pm
Msg #256192
I just read this book last week. It wasn't nearly as juicy as the title implied, but I thought it explained a lot of the reasons behind the subprime mess in a way that was easy to understand. In particular, as long as investors are willing to buy securitized loans, there is very little incentive for the lender to make sure the borrower can afford the payment since once the loan is securitized and sold, the lender is no longer the one receiving (or not receiving) income from the payments. Not sure what the answer is.
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