Those who have been around long enough have read me comment on the mortgage industry from time to time. As a former mortgage broker, I write it about it less now than I did before, but my my experience gives me a bit of insight that many Americans don’t have. A cursory view of most news programs makes it clear that pundits and the public have a skewed view of the mortgage industry and the “meltdown,” thanks in no small part to political meddling in the industry and those who seek to further their political career by demonizing those trapped in the very crisis they helped create.
And while I occasionally joke about being a “victim of the whole mortgage crisis,” anyone who happens by regularly also knows the one thing I abhor more than virtually anything are people playing the victim. We all have choices in our lives and those choices have consequences. Sometimes we are responsible for our bad fortunes, and sometimes life just deals us a crappy hand, but in either case you don’t overcome those obstacles by complaining about them. This country was built in many respects by the victimized, but they were not victims. Had they allowed themselves the pity-party of a victim’s mentality, we would have never tasted liberty. Unfortunately the same cannot be said of the populous today. It is victim mentality that elected Barack Obama. It is victim mentality that is driving our liberty off a cliff.
Today I received an anonymous e-mail from “Betsy Ross,” one of these “victims” who didn’t take kindly to my about page and wanted to blame mortgage brokers, realtors, the economy, illegal aliens, taxes, LIBOR, and apparently me because she lost her home. Needless to say, I didn’t take kindly to her e-mail. Not for the faint of heart, here is my response.
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First of all anonymous “Betsy Ross”, [saying I was a victim of the mortgage crisis] was said a bit tongue in cheek. But yes, I did have to close my business because of the meltdown which was caused first and foremost by Fannie Mae, Freddie Mac and ultimately by goons in Congress who think they understand the mortgage industry but really know nothing. Assuming a “free market” can be engineered or manipulated for political purposes and remain free is a clear sign of ignorance.
Our government created the market for “subprime” loans and lending based on ethnic instead of economic factors. Then, after they gave everyone loans, they came in and changed the rules so many of those people who expected to be able to refinance no longer could because the loan program disappeared.
And while I sympathize with you losing your home, I fail to see how any realtor, bank or mortgage broker caused you to lose your home. Is it their fault you made a bad decision, didn’t understand the product or could no longer pay your bill? Is it their fault that you didn’t understand what you were buying? People should take a bit more personal responsibility instead of looking for someone else to blame. Likewise, what does the “increase in costs” have to do with you losing your home? Did you not know you were getting an adjustable rate mortgage? If not, why not? What part of “adjustable” did you not understand. If you assumed it would go down instead of up… well, you know what they say about assumptions. There most certainly was a rider and disclosure after disclosure stating as such. You took a risk getting an adjustable rate loan, and I guess the risk didn’t pay off. Likewise, the fact that the index was based on LIBOR was clearly stated multiple times. If you had a problem with a loan based on LIBOR then, why did you sign it?
I didn’t push adjustable rate loans on anyone. In fact, I counseled my customers against them. And there was one type of adjustable rate loan that I refused to sell even if my customer demanded it. But guess what, if a customer came to me asking for a stated loan, or no documentation loan, and I asked them for documentation anyway, I could have gotten in trouble… and had they been a minority asking for such, I could have lost my license or worse.
Were there some bad brokers, realtors, etc out there making things worse… sure there were. But no more than there were borrowers assuming it was a free ride and not taking responsibility for the single largest purchase most of them would ever make. And certainly no more than government crooks who tried to manipulate the economy and the mortgage industry to everyone’s detriment.
I watched many good people lose their jobs because of this mess, just as I lost mine. But I’m not out there asking for a handout or a bailout or using some anonymous comment to blame everyone else for my troubles. I did the very best for my customers, and could look every one of them in the eye today knowing I gave them the best deal I possibly could. I can do that because I took responsibility for my actions and my business then, just as I do now. If more people would, we wouldn’t be in this mess.
You know what’s going to make the whole thing worse? The recently expired mortgage tax credit and the recently passed “financial regulation bill” that are only creating more government interference into a market that was already destroyed by government interference… and subsequently creating artificial demand in an industry that bubbled and collapsed because of artificial demand.
Those who don’t learn from their mistakes are doomed to repeat it. Those who blame everyone else for their troubles will always fail. Was I a victim of this mess… sure because I did everything right and still got caught in the landslide. Am I sitting here complaining about it? No, I’ve moved on. Maybe you should do the same.
Back during the “prime” of subprime loans, I worked as a warranty rep. for one of those builers that made their product strictly for “those who deserve a home.” I had no idea what I was getting into when accepting the position.
WHAT AN EYEOPENER!! It was absolutely the worst job. I could go on for hours, and wish someone would let me testify about the horrors of the entire experience.
NOT everyone “deserves” a home to own. Too often some is given something they have not earned and will have no pride of ownership. Brand new homes with burned out car bodies staining the driveway (with a pitbull chained to the chasis), stuffing an entire turkey(bones and all) down a garbage disposal, never changing a/c filters, or living with no furniture in a house filled with”beanie babies”.
The craftsmanship of the product was shameful. Many contractors had undocumented workers that were payed too little, and if injured on the job, refused medical treatmen for fear of being discovered. The contractors were paid so poorly, there was NO incintive to repair mistakes, making the product anything but sub-quality.
After 11 months I could not take the situation any longer….the stress and dishonestly was too much. Four days after giving my 2 week notice….I was informed that the lump I had discoverd in my breast was cancer. Begging to let me stay on so I could keep my health insurance…..well, I was told by the boss “we can’t have sick people working here.”
I also have moved on. After agressive cancer treatment and surgery, I returned to my loveof art. Life is too short to give the best hours of a day working for people who don’t appreciate. I live with my elderly parents and have not been able to fine a full time job. Teaching art at a 2 year college and volunteering art projects with the less fortunate is the most rewarding thing I have done in too long. I don’t own a home myself, but maybe someday…………
Hi Katherine. I’m sorry to hear about your Cancer, you didn’t say if you were in remission or “cancer free,” I hope that you are.
There were and still are unscrupulous builders, like there are unscrupulous business people in every business and industry. But that didn’t create the environment or the mess. Quite the contrary, they were encouraged by the environment that was created by regulators and Fannie/Freddie along with the Community Reinvestment Act.
I would never say “Not everyone deserves a home to own.” Instead I would say that everyone DOES DESERVE the same access to opportunity. Meaning there should be no barriers because of race, religion, etc. But nothing should come without a price. When people have paid a price for their assets and achievements, they respect them more. If people had a bit more skin in the game instead of a sense of entitlement, we wouldn’t be in the mess we are in.
American Elephant,
I couldn’t agree with you more! The message is the same for all areas that you could be a victim…I know first hand as an abuse survivor. I do have to fight daily to carry on with life and there are barriers that I have, but am not letting that stop me. I moved out, have gotten married and we are buying a home. We purchased a home we COULD AFFORD. And that is where I see how the melt down happened. Letting those who could not afford, buy. It is like going out for a steak dinner where the tab is $50 and only having $40. Now, people are losing their homes which is sad, but they are still trying to live off the government and/or handouts.
I don’t know if you frequent Craigslist, but I see wanted ads for luxury items such as TVs, cars, I have seen people ask for money to take a vacations. The term beggars can’t be choosers comes to mind. A typical ad I see is for furniture–must be in good condition, matching set (sofa, loveseat recliner, end tables), but it has to be free and delivered. These ads often stay up, which there is no reason to flag them for deletion if someone wants to give it is their right. I haul scrap metal–I put up an ad in the same wanted section titled “Wanted Junk cars and scrap metal” I pay depending on size and the price of metal. My ad gets flagged several times a day. I make anywhere from 30-100 dollars depending on how much I get for catilytic converters, radiators, and if it has aluminum wheels or engine, I also count how much good gas I get out of the vehicle. My point being a good portion of our population want to be given everything.
And to Katherine,
I take pride in my home, but others see it as “trashy”. One neighbor particularly would constantly call in complaints, but we were within county ordinances. We work out of our backyard, and are constantly taking things apart, but we clean up the mess quickly. We also have our dogs on chains in a pen–they learned they could leap over it. It is not perfect, but I keep my house clean, yard cut, and have a nice garden. At the back of our property are 7 trucks, they don’t all run, but are in a neat line down a hill that you have to be on our property to see. They are parts trucks, but when we get the parts needed they go to the crusher. They are moved to be mowed under and around. It is my home and I take pride, but not everyone sees that. I do agree I wouldn’t tie my dog to a car chassis, but one may take pride in that–have you ever seen an old rusted truck with its bed full of flowers? I personally love that look, but you may see it as trashy. I also agree people don’t always feel they should take pride in there home, but more often it is renters. Owning a house should be owning a home, but sometimes it is just a house. The difference to me, is a house has no pride-they let it run down and fall apart-because they don’t plan to keep up with payments, or simply don’t care.