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interestrateripoff

Bank Of Internet Usa - Big Mortgages For The "rich"

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http://www.nytimes.com/2015/08/23/business/a-internet-mortgage-provider-reaps-the-rewards-of-lending-boldly.html?ref=business

You have substantial assets, but your income is erratic and your finances are what in polite company would be called “complex.” Your credit history may contain a smudge or two. Yet you would like to buy one more luxury apartment.

Major banks like Wells Fargo and JPMorgan Chase are not eager to give you the $3 million mortgage you need, nor are any traditional banks that specialize in making big-dollar home loans to higher-income clients.

If that’s your profile, Gregory Garrabrants may be your man.

As the leader of Bank of Internet USA, based in San Diego, Mr. Garrabrants has been issuing big mortgages to high earners whom other lenders might not necessarily welcome with open arms. But because its financial performance has, in many ways, been spectacular, Bank of Internet has been turning heads — and setting off alarm bells as well. The bank has made loans to people who were later found to have run afoul of the law, and Mr. Garrabrants has had to reassure investors that the bank has good relations with regulators.

Seems an accident waiting to happen if you are lending to people the big banks don't want to touch. Short term profits for the cost of long term stability?

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You have substantial assets, but your income is erratic and your finances are what in polite company would be called “complex.” Your credit history may contain a smudge or two. Yet you would like to buy one more luxury apartment

Yeah yeah substantial assets (debt) , erratic income (no job), complex finances, credit history iffy, $3 million loan. Been there already - it's sub-prime.

Don't worry there are new rules to stop the dodgy bits and to stop taxpayers and savers being swindled again :rolleyes:

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