Need for capitalization - Reader comments at The New York Sun

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Reader comment on:
Subprime Debacle

Submitted by Laurent Baptiste, Oct 26, 2007 08:16

Your suggestion that mortgage originators be capitalized to hold a percentage of their loans in portfolio is excellent. World Savings (now part of Wachovia) holds the bulk of its loans in portfolio, and offers some of the most "exotic" mortgage products of all - they developed the "pay-option arm" and have been consistently profitable. I am a mortgage loan officer, and I am appalled at the "one stop shops" of mortgage broker, real estrate broker, and (fraudulent) appraiser that infest minority neighborhoods. These people are practicing fraud, and are part of the reason that 53 percent of mortgages issued to African-Americans are "high cost" by federal standards. It is safe to say that none of the loans they broker are held in portfolio by the lenders.

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Other reader comments on this article

Comment	By	Date
I found this article balanced. The author just reported the information and allowed the reader to come to his or... [MORE]	Jeffre Powell, Certified Mortgage Planner	Nov 11, 2007 11:00
Congress is considering legislation to hold the Lender liable for loans made to borrowers that fail. The legislation is saying... [MORE]	Prof. Samuel D. Bornstein	Oct 27, 2007 22:31
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Congress is considering legislatiion to hold the Lender liable for loans made to borrowers that fail. The legislation is saying... [MORE]	Prof. Samuel D. Bormstein	Oct 26, 2007 22:58
Why use the misnomer "correction" to describe the housing bear market. Housing is in a multi-year bear market that will... [MORE]	David Shulman	Oct 26, 2007 15:29
Pupils of the 7th and 8th Grades of America's Public School Systems should become proficient in the financial operation of... [MORE]	Claude Bogardus	Oct 26, 2007 10:58
Credit bureaus require individuals to obtain long-term debt like mortgages and lines of credit to improve their credit scores so... [MORE]	Jim	Oct 26, 2007 10:16
Your suggestion that mortgage originators be capitalized to hold a percentage of their loans in portfolio is excellent. World Savings...	Laurent Baptiste	Oct 26, 2007 08:16
Boo hoo. Bad investments made by greedy businessmen on mortgages entered into by uninformed buyers who weren't qualified to begin... [MORE]	Steven Gruber	Oct 26, 2007 07:21