Mortgage Fraud...

[Jared I]

http://www.honoluluadvertiser.com/apps/p...LNEWSFRONT

I just saw this. I wonder if they will go after people that lied on their Nina and Ninja loans?

Jared

[lizr]

Wow that was awful to read.

I heard from another mortgage broker the other day that they are investigating some folks here on Big Island.

Something to do with the difference between appraised value and the true value of the house.

Nina and Ninja loans? What are those?

[cynmkolohe]

NINA = No Income No Asset
NINJA = No Income, No Job, No Asset

These are what are sometimes called "liar loans" or "no doc" loans (not truly "no" doc).

There are valid reasons for some buyers to qualify for and use these loan programs, but also great potential for abuse, as the current situation is revealing.

Cynthia

Cynthia Hoskins, R(S)
Cell: 808 443-6564

Clark Realty Corporation
99 Aupuni St Hilo, HI
Office: 808 961-6015

[cynmkolohe]

http://moneycentral.msn.com/content/Bank...P33720.asp

The link above is to a fairly good article with generalized definitions of these types of loans.

[missydog1]

cynmkohole, I wish you wouldn't repeat the "liar loans" name. I take it kind of personally, having had several of those loans, and never missed a payment or told a lie on my app.

Those loans are very good for people who are retired and/or disabled who have assets in the form of cash and real property. Conventional loan apps will deny a disabled person who doesn't have enough monthly income, and the same with a person living on Social Security retirement, even if that person has assets that will allow for making the loan payments.

Conventional is way too geared towards the "paycheck" lifestyle and for people doing something else it's not a good product.

As I recall, we qualified by having FICO scores over 770 and no dings on our credit.

I'm sorry that people abused these loans, but I know that they helped us, and we met our obligations.

[Jared I]

KathyH,

The main reason they are called "liar loans" is that people lied to get into the big home than they had means for and the bank/broker failed to examine and verify the data sbmitted. I have used a NINA, but I placed a large down payment 60% and was ready to submit more data if required. Actually there are ways to get loans for those who are asset and cash heavy.

Its the idea that people get ARMs under the idea that they can refinance later, and pull money out. People who did Nina/Ninja/OptARM and other exotic have really screwed over their community not only themselves. They bid up prices, which raises everyones RE taxes; then when they default they lower everyones property values.

People need to go back to 3yrs W2s, 2 yrs bank records, 3x income when getting a loan.

And lying on a mortgage doc is a federal offense, usually falling under fraud provisions. It would be crazy if the Feds re-examined all those loans going into forclosure and prosecuted those who applied couldnt verify income, or brokers who failed to verify the info before securitizing it and the mortgage went belly up. Heck lets bring back some debtors prisons for applicants and loan brokers so they can pay back their debts. Where is responsibility placed?

[Beachboy]

quote:

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Originally posted by lizr

Wow that was awful to read.

I heard from another mortgage broker the other day that they are investigating some folks here on Big Island.

Something to do with the difference between appraised value and the true value of the house.

---

can you elaborate on this subject? What is the disadvantage or advantage of having your home appraised above or below "true" value of your home?

"I would never die for my beliefs because I might be wrong."

Bertrand Russell

[Beachboy]

quote:

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Originally posted by KathyH

cynmkohole, I wish you wouldn't repeat the "liar loans" name. I take it kind of personally, having had several of those loans, and never missed a payment or told a lie on my app.

---

don't take offense to a title, that's all it is is a name. KathyH, I'm like you, I qualified because of my high FICO score. Don't let a nickname get you upset! As long as you and I meet our requirements we will be okay.


"I would never die for my beliefs because I might be wrong."

Bertrand Russell

[missydog1]

>>>People need to go back to 3yrs W2s, 2 yrs bank records, 3x income when getting a loan.

This is the part I object to ... it means if you plan on retiring, don't plan on buying a house after you retire, if you can't pay it off, but you can buy it a month before you retire and you qualify.

>>>Its the idea that people get ARMs under the idea that they can refinance later, and pull money out. People who did Nina/Ninja/OptARM and other exotic have really screwed over their community not only themselves.

Not necessarily. Our no doc loans were fixed rate, not ARM's, and we never even had a mortgage broker recommend an ARM to us here.

Beachboy, as I was told by my broker, the good credit qualifying products went out the window over the last year thanks to all the misbehavior by others.