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Housing Market 'faces Abyss' Over New Rules On Mortgages


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HOLA441

Business Scotsman: Housing market 'faces abyss' over new rules on mortgages.

HOMEBUYERS are heading for a house price abyss if watchdogs press ahead with new mortgage rules which could leave up to one in five, or nearly two million borrowers, unable to remortgage or move house.

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The VI's are going to fight to the death on this - because they know that the ENTIRE house price pyramid/ponzi SCAM is predicated on LIAR LOANS/Mortgage Fraud -- if mortgages are returned to a system based on TRUTH and HONESTY - and TRANSPARENCY - the WHOLE SCAM will come tumbling down.....

So they are going to do EVERYTHING in their power to stop all this - just like the Wall Street VI LOBBY in the USA managed to vastly water down the efforts to regulate and bring into line the Wall Street Lie Machine...

Read the 4 pages here - http://business.scotsman.com/business/Housing-market-39faces-abyss39-over.6425794.jp

It is all so predictable.... The VI's are going to dilute PROPER regulation of mortgages - their very existence depends on it... The ENTIRE housing "market" is completely skewed by MASSIVE fraud and dishonesty...... This is the big one - and they know it....

Edited by eric pebble
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HOLA442

I just had a vision of you, many years from now, on your deathbed. Your last words are "Liar Loans" before a snow globe drops from your hand and rolls along the floor.. inside the globe is a model of a house... Onlookers wonder what did he mean... causing an eager young journalist to delve back into history...

I think the increase in fibre in my diet is causing this.

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HOLA443

I just had a vision of you, many years from now, on your deathbed. Your last words are "Liar Loans" before a snow globe drops from your hand and rolls along the floor.. inside the globe is a model of a house... Onlookers wonder what did he mean... causing an eager young journalist to delve back into history...

I think the increase in fibre in my diet is causing this.

I was chatting with my bank manager a couple of months ago and couldn't resist slipping "liar loans" into the conversation. He did a double take, then said "liar loans, that's about what they are" and laughed.

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HOLA444
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HOLA445

TMT... lol!!!!!!!!!

:rolleyes::D

Funny! :P - but - the whole LIAR LOAN scam-machine, invented by the Banksters [Goldman Sachs etc.] is the Greatest Pyramid/Ponzi Scam of ALL History.....

Individuals/couples/families across the world work their entire lives to "fund" the purchase of the roof over their heads by taking out mortgages and devoting the vast majority of their life earnings to paying them off.......

And yet - the whole thing has turned into the biggest rip-off scam of all time....

It is the biggest MAMMOTH in the room - STILL it is not spelled out as headline news - as it should be -- the world economy itself teeters on the edge of an abyss thanks to all this.... :rolleyes:

Edited by eric pebble
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HOLA446

Housing market 'faces abyss' over new rules on mortgages.

It is all so predictable.... The VI's are going to dilute PROPER regulation of mortgages - their very existence depends on it... The ENTIRE housing "market" is completely skewed by MASSIVE fraud and dishonesty...... This is the big one - and they know it....

It doesnt matter, If we dont regulate, we'll never get out of this debt-economy morass. They are an endangered species whatever happens, they just want to ensure if they go down, everyone goes down.

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HOLA447

I just had a vision of you, many years from now, on your deathbed. Your last words are "Liar Loans" before a snow globe drops from your hand and rolls along the floor.. inside the globe is a model of a house... Onlookers wonder what did he mean... causing an eager young journalist to delve back into history...

The key question is: in your vision, does this happen in an elegant mansion "snapped up" at rock bottom prices after HPC finally happens - or in a grotty rented bedsit? :ph34r:

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HOLA448
Mortgage broker Ray Boulger, of John Charcol, said: "There is nothing intrinsically wrong with these loans which the FSA now wants to ban or severely restrict.

...with general advice like this he should be banned....no loans should be made without evidence of income ..... :rolleyes:

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HOLA4411

Keep up the good fight Eric.

Thanks BNW.

In that article - [bottom of page 1]: http://business.scotsman.com/business/Housing-market-39faces-abyss39-over.6425794.jp

"Mortgage broker Ray Boulger, of John Charcol, said: "There is nothing intrinsically wrong with these loans which the FSA now wants to ban or severely restrict."

God how I LOATHE that scumbag - with his salivating, greasy face as he becomes an ever larger slab of lard on the back of ordinary people being ripped off by the Banksters...... AND - he is wheeled out as an "expert" practically every week by the pro Nieu-Labia BBC.....

Makes my flesh creep.... :angry:

Edited by eric pebble
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HOLA4413

I thought John Charcol went tits up months ago :blink:.

...almost...and they are still doing financial advising .... :rolleyes:

John Charcol saved by pre-pack adminstration

John Charcol, the beleaguered mortgage broker, has become the latest company to undergo a controversial pre-pack administration – saving jobs but leaving its creditors out of pocket.

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7301221/John-Charcol-saved-by-pre-pack-adminstration.html

Edited by South Lorne
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HOLA4414

F***ING TYPICAL - left all the creditors out of pocket - just like the Banksters left the millions of ordinary tax-payers out of pocket - and they just carry on as normal....

Sticks in my craw..... :angry: :angry:

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HOLA4415

So we have millions of overstretched homeowners unable to remortgage as that would depend on them telling the truth ie that they're not all earning 80K pa.

Said homeowners have to remain on SVRs + Banks need to increase their income when SLS scheme ends = huge increases in SVRs.

Why are we so concerned about the B of E raising base rates for a decent HPC???

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HOLA4416

Business Scotsman: Housing market 'faces abyss' over new rules on mortgages.

HOMEBUYERS are heading for a house price abyss if watchdogs press ahead with new mortgage rules which could leave up to one in five, or nearly two million borrowers, unable to remortgage or move house.

----------------------

The VI's are going to fight to the death on this - because they know that the ENTIRE house price pyramid/ponzi SCAM is predicated on LIAR LOANS/Mortgage Fraud -- if mortgages are returned to a system based on TRUTH and HONESTY - and TRANSPARENCY - the WHOLE SCAM will come tumbling down.....

So they are going to do EVERYTHING in their power to stop all this - just like the Wall Street VI LOBBY in the USA managed to vastly water down the efforts to regulate and bring into line the Wall Street Lie Machine...

Do you have any figures that show the proportion of defaulters with self cert mortgages as against those with 'normal' mortgages? It seems pointless to talk about defaulters or repossions as whole and make assumptions about one distinct section of it.

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HOLA4417

The key question is: in your vision, does this happen in an elegant mansion "snapped up" at rock bottom prices after HPC finally happens - or in a grotty rented bedsit? :ph34r:

It was a massive room... with marbled colums... everything was in black & white though... sort of like an RKO film from the 1940s...

Right, off for my weekly laugh at the local EAs and their ludicrous asking price.

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HOLA4418

Do you have any figures that show the proportion of defaulters with self cert mortgages as against those with 'normal' mortgages? It seems pointless to talk about defaulters or repossions as whole and make assumptions about one distinct section of it.

...nearest I found is...

Critics of self-certification mortgages have referred to them as ‘liar loans’. Since the credit crunch began, the default rate on self-cert mortgages has been higher than on standard deals.

While some borrowers are bound to be concerned about the FSA's plans to restrict self-certification mortgages, Ms Cottrell commented: ‘The vast majority of people, including the self-employed, should be in a position to provide some form of proof of income. Therefore, very few consumers are likely to experience difficulties as a result of any ban on self-cert lending that may come into force.'

http://www.which.co.uk/news/2009/10/the-end-for-self-cert-mortgages--186592

Edited by South Lorne
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HOLA4419

Do you have any figures that show the proportion of defaulters with self cert mortgages as against those with 'normal' mortgages? It seems pointless to talk about defaulters or repossions as whole and make assumptions about one distinct section of it.

:rolleyes::rolleyes::rolleyes:

Not sure you get it mate - the whole point about the LIAR LOAN scam machine is that it MASSIVELY drove up the price of the roof over the heads of millions and millions - they may not be defaulting by the millions [yet] - but countless millions are shelling out their hard-earned income FAR more than they would otherwise have - had the banksters not come up with their massive pyramid LIAR LOANS scam....

SO - how has this happened?

Person A takes out a LIAR LOAN urged upon him/her by lying, cheating, fraudster scumbag "mortgage broker" [see below] - and Person A thus "buys" house/property in street/hamlet/village/town A;

Person B comes along - and - to buy in same street/hamlet/village/town A - he EITHER has to take out a LIAR LOAN - or pay FAR bigger multiples on his "ordinary" mortgage - [which effectively becomes another LIAR LOAN as a result]. He has NO OPTION but to MATCH the "price" set by local comparison valuation/pricing by scamming local EA's....

End Result: This process is REPLICATED ad infinitum across all the streets/hamlets/villages/towns across the ENTIRE UK [and further] - and thus - everyone forced to pay FAR more for roof over their head.

And GUESS who the winners are in this massive pyramid price-pumping scam??

The Moneylenders/Banksters and their VI Pwoperdee Developer friends........

:rolleyes::rolleyes::rolleyes:

Edited by eric pebble
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HOLA4420

Yes I read that the defaults are more prevalent for self cert loans but not seen actual figures. Even taking out the liar aspect of self cert loans you'd expect them to have a higher rate of default given that the self employed seem to have been more directly hit by the recession and this group are probably form the majority of self cert mortgages.

Not sure you get it mate - the whole point about the LIAR LOAN scam machine is that it MASSIVELY drove up the price of the roof over the heads of millions and millions - they may not be defaulting by the millions [yet] - but countless millions are shelling out their hard-earned income FAR more than they would otherwise have - had the banksters not come up with their massive pyramid LIAR LOANS scam....

I understand well enough, there's no doubt that this sort of lending helped inflate house prices, the question is 'by how much?' A quick Google reveales many different figures as to how many there were during the peak of the housing boom from 13% (http://www.easier.com/74518-self-cert-mortgages-broker-business.html) to 43% 'unverified' (FSA) although even the FSA acknowledge that it was only 6% in 2004 (http://www.fsa.gov.uk/Pages/Library/Communication/PR/2004/012.shtml), when HPI was already in full swing. So you have to consider cause and effect, just as you may save a bit harder to buy a car if car prices were rising you might borrow a bit 'harder' to buy a house in a rising market, one soon feeds the other but I'm not sure its right to say one caused the other.

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HOLA4421

Yes I read that the defaults are more prevalent for self cert loans but not seen actual figures. ..../

I understand well enough, there's no doubt that this sort of lending helped inflate house prices, the question is 'by how much?' .....///

It's the mammoth in the room.

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HOLA4424

Yes I read that the defaults are more prevalent for self cert loans but not seen actual figures. Even taking out the liar aspect of self cert loans you'd expect them to have a higher rate of default given that the self employed seem to have been more directly hit by the recession and this group are probably form the majority of self cert mortgages.

I understand well enough, there's no doubt that this sort of lending helped inflate house prices, the question is 'by how much?' A quick Google reveales many different figures as to how many there were during the peak of the housing boom from 13% (http://www.easier.com/74518-self-cert-mortgages-broker-business.html) to 43% 'unverified' (FSA) although even the FSA acknowledge that it was only 6% in 2004 (http://www.fsa.gov.uk/Pages/Library/Communication/PR/2004/012.shtml), when HPI was already in full swing. So you have to consider cause and effect, just as you may save a bit harder to buy a car if car prices were rising you might borrow a bit 'harder' to buy a house in a rising market, one soon feeds the other but I'm not sure its right to say one caused the other.

defaults in the US (around 6% IIRC) wipes out profits on all the lending still outstanding.

thats 6%. not a huge amount....

Liar loans didnt just affect house prices....it aided the leverage of financial investments BASED on houses.

so your housing market falls 10%, that wipes out 100% many leveraged investors...that includes banks, pensions and government departments.

Seof Cert is no problem in itself. It was the abuse of self cert by brokers and the blind eye and guaranteed no checks on income by bankers that was the problem. a nurse with a salary, has no need of a self cert.

Of course, ALL BTL were self cert where income was predicted.

Agencies ike John Charcol make commission on sales. they WANT £200K, £300K or more mortgages. they would have to sell 8 times as many £30, £60K mortgages that sustainable lending dictates.

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HOLA4425

Do you have any figures that show the proportion of defaulters with self cert mortgages as against those with 'normal' mortgages? It seems pointless to talk about defaulters or repossions as whole and make assumptions about one distinct section of it.

Just found this:

Advisors round on self-cert ban proposal

The FSA says its analysis shows self-cert borrowers take out larger loan amounts than borrowers with standard products and fall into arrears much more frequently. It estimates arrears rates can be up to three or four times higher than that of an income-verified borrower.
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