Did Countrywide bother to read any of the mortgage contracts they purchased from lower tier banks?

Did they ever refuse to purchase a single mortgage from local lenders on the basis that a person making $60k will NEVER be able to pay a $600k mortgage once the ARM kicks in?





Or did they simply buy every mortgage contract that crossed their in box?Did Countrywide bother to read any of the mortgage contracts they purchased from lower tier banks?
It appears to me the Countrywide was very careless in making loans to people who could not repay those loans.Did Countrywide bother to read any of the mortgage contracts they purchased from lower tier banks?
Countrywide made the loans the government told them too throught the community reinvestment act. The government during the Clinton Administration, along with Chris Dodd and Barney Frank etc, decided that everyone should be able to own a home. So they gave the mortgage industry quotas on how many loans they had to make to minorities, first time homebuyers, the poor, etc. The banks had to drastically lower lending requirements and change the way they qualified people (or didn't). Because it is generally not profitable to do so, the government, through almost non existant lending requirements in Fannie Mae and Freddie Mac, bought up those loans and took away some of the risk for the lending institutions. Everything got out of control and home prices skyrocketed, and no one said anything because everyone was supposedly getting rich. It was a false economy, with companies and jobs in cottage industries that never should have existed, and now everyone is hurting because of a few people in government who did it to buy votes. Bush and many conservatives waved the red flag, but no one listened, and now people blame him because hes the incumbent. But the media doesn't tell you any of that now do they?
No, but you if you actually read the TARP language you will understand that the federal government has been forcing stronger banks to buy up weaker banks for the past 9 months or so...





Simple fact, TARP was never meant to get ';credit flowing'; again... it was an attempt at federal takeover of the banking... Which is succeeding!
As a Realtor and dealing with nice people in that field I would assume the buyers got commission.


Then assuming they are like most people in the land business they closed their eyes and grabbed the dough.


Real Estate like law and mortgages is a dirty business.


Honest people have a hard time but it can be done if you respect your integrity. You see a lot of strange and unscrupulous actions.
They sold those toxic loans to Wall Street. Who in turn sold them to the World in the form of AAA rated CDO's. Wall Street never saw a loan they wouldn't buy.





It wasn't just Countrywide. It was everyone. Quick Loan Funding, Ameirquest, Own it, Wells Fargo, Wachovia, BoA, etc.
Most of those loans were backed by the government. That is the problem, if you have no risk of losing you'll take any risk. That is the problem with mortgage backed securities.





A problem created by government, that government has no clue how to solve.
I think they just bought every mortgage they could get their hands on. They weren't doing anything that everyone else wasn't doing at the time. In hindsight every mistake is an obvious one.
They read them like Chris Dodd (Democrat leader) read his own sweetheart loan agreement (ie: not read at all).
No it's time consuming and costs too much.





It's much cheaper to get a Bail Out. lol





Regards.
I don't know, did anyone in congress happen to read the stimulus bill?