Regulators are concerned about mortgages. They've seen more and more complaints. Why might this be? The housing bubble we've all been hearing about has contributed to greed and loose standards. Almost anybody involved in a home purchase stands to benefit by getting a deal done -- except of course the buyer. Loans have become more complex, and people find that they got into more than they bargained for. Listen to an audio story on the investigations at Marketplace Money.
Further reading:
- Marketplace Money Podcast
- Option ARM Loans
- Negative Amortization Loans
Gentlemen,
In looking at refinancing an ARM loan to expire in 2011 I find a whole lot of Banks with devious ways of making loans outside the rule of prime Govt. monies.
In particular the Bank of America where I have this ARM loan from 2004. To re-finance my 5.25% loan fixed for 7 years they want to get me involved into a 5.5% Loan along with 1.5 points and closing fees of $6000. How is that helpfull ? I am going to pay them $6000 and points for just giving me a 30 year fixed loan at a higher rate. RIDUCULUS !! They already have the information on the present loan and now will rip me off with $6000 of closing costs. This is how they are now making their money that the Govt. gave them to help people. Only one institution gave me a 4.625% 30 year fixed with $4000 of closing costs including 1% points. That I could understand and that was from an institution that never had my business before. Bank of America is rotten to the core and I will be removing all my checking from them.
I have a $295,000 home with a mortgage of $115,000 and they cannot make a reasonable Loan with all that collateral ? How can we recover from this system with a Bank like them who have gotten a great deal of money from the Govt.? The Banks and the Gasoline industy will bankrupt this nation if the Govt. does not step in and regulate them. So much for a veteran of the Berlin Airlift in 1948 !
THOUGHT YOU OUGHT TO KNOW !!
Marion Nolan, 2660 COvington CIr , Sevierville Tn. 37876, Pinkytwo1251@att.net, 865-429-2044.