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JOEBIALEK JOEBIALEK is offline
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Old Nov 3rd, 2007, 09:23 PM        Mortgage Meltdown

Until recently I was an underwriter for a sub-prime mortgage company that is about to close. It seems that most media outlets and government officials fain ignorance about the real underlying cause of the problem. There is either a tendency to blame the borrower or act as though no one in the industry {or outside of it} saw this coming. They fail to mention that those who gained the most financially got off scot free while leaving the mess behind for everyone else to clean up. In my former company, the sales managers and loan officers "held the keys to the safe" while deciding which guidelines to ignore sometimes going so far as to bribe fellow underwriters to "look the other way". Sales managers often overrode an underwriter's decision they did not agree with. Other times fellow underwriters would be threatened with their job for "impeding company growth and progress" just because they refused to go along with the flagrant disregard of guidelines . I complained to the sales managers about the bribing but all I got was a formal write-up for making "inappropriate comments".


There was absolutely no support from the owner of the company all the way to the human resource representative. This company is as corrupt as they come. I can't tell you the number of sexual affairs that occurred between married and unmarried people; primarily among the management staff {at the workplace itself}. Promotions were strictly political thus moving people "up the ladder" who never proved themselves worthy or were on a final written warning to be terminated {for poor performance}. As a result of the corrupt management of this company, I and several hundred others were laid off. I believe the federal government needs to investigate this company and bring to trial those corrupt individuals who broke the law. This would set an example for the rest of the mortgage industry that absolute corruption corrupts absolutely.
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Emu Emu is offline
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Old Nov 3rd, 2007, 10:05 PM       
Uh, so, you're mad because you couldn't bone your way to the top?
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KevinTheOmnivore KevinTheOmnivore is offline
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Old Nov 4th, 2007, 02:46 PM       
Permit me to introduce myself. My name is Joe Bialek and I was born on September 12, 1963 just 40 days before the assassination of President John F. Kennedy. My family was originally from Cleveland, Ohio. It is the city of my current residence. I attended Padua High School in Parma, Ohio and went on to complete a Bachelor of Arts in Political Science and a Masters of Public Administration at the University of Akron. In 1993, I moved back to Cleveland and resided in my grandfather's house located in the neighborhood known as Slavic Village. This is where my grandfather immigrated from Poland and the house where my father was born. I then ran for city council against the incumbent who was elected in 1985. After work each day I would walk to each of the 9,000 registered households from April to August and seemed to make a positive impression among the voters. However two other candidates entered the race and I finished last. The strange thing about the results, however, was the disparity between the absentee ballots and the card-punched ballots. According to the absentee ballots, I lost by a 2-to-1 margin to the incumbent but won by a 16-to-1 margin over the other two candidates. But according to the card-punched ballots, I finished last by just 4 votes. I was so exhausted by the campaign that a recount was the furthest from my mind. In the general election, the incumbent retained his seat.

Shortly after the election, I was elected President of South East Clevelanders Together. The purpose of this non-profit group was to organize each of the twelve sub-neighborhoods located within Slavic Village (Ward 12) to address quality of life issues in an aggressive and systematic manner. Needless to say, it did not take long for our group to clash with the Councilman's housing group. Their primary objective was to build and rehabilitate housing without any real regard for the other issues affecting the residents and business owners. The councilman's father owns a large real estate company so I'll let you draw your own conclusion. Our funding was cut off from the City of Cleveland and efforts to raise money through foundations were sabotaged. Inevitably I was forced to use my own money to sustain the efforts of the organization. In spite of all the resistance, however, we were very successfull in organizing block clubs and civic associations as well as bringing pressure to provide solutions to the problems plaguing the community. All during this time, the councilman attempted to spin my intentions as simply an effort to prepare for a second council run. I did not run again in 1997 because I felt it would be more beneficial for the community if SECT continued to push for action rather than allow the entrenched councilman to ignore issues while his housing group pushed rehabilitations and new construction.

In 1999, I moved to the Old Brooklyn neighborhood of the city of Cleveland. I decided to withdraw from public life and shift my focus to reading philosophy, economics, sociology, religion, psychology and political theory. I also committed to writing a editorial piece once per month hence the reason for my monthly email and message board postings. I do this out of altruism and receive no compensation what so ever. My sole objective is to offer suggestions on how we may fine tune America and stear the United States in a positive direction. I know I've been guilty of posting to message boards and not returning to join in the discussion. But I have read most responses. Accordingly, I hereby commit to returning no sooner or later than 24 hours after my post to answer counter arguments. I'll only respond to intellectual contributions not insults or statements from those who treat message boards like their little fiefdoms. For those of you who would like to contact me, you may reach me at the email address listed below. Thanks and let us continue to "fine tune America".

Joe Bialek
Cleveland, Ohio
jgbialek@adelphia.net
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JOEBIALEK JOEBIALEK is offline
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Old Dec 22nd, 2007, 02:49 PM        same
ok
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Emu Emu is offline
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Old Dec 22nd, 2007, 04:17 PM       
how did you do that
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El Blanco El Blanco is offline
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Old Dec 27th, 2007, 02:06 PM       
I'd like to try and turn this into an actual discussion about the mortgage crisis.

I recently purchased (ok, still waiting for closing), so this is an issue for me. No, I didn't go for a sub prime loan or anything like that. I got a regular 30 year fixed at a good rate. I spent close to three years cleaning up my financial status and building up my credit. I bought into a co-op that I can easily afford and I made sure I can handle any unexpected expenses (within reason).

I constantly bugged family and friends that own to get their experiences and advice. I raided half the real estate section at Barnes and Noble. I went through Fannie Mae's website and shopped around. I found a good lawyer, asked a million questions and generally made sure my ass was covered.

I've been trying to get a handle on whats been happening, but economics is not my strength. Feel free to correct my inaccuracies and misconceptions. Here's what I got so far:

For years, banks and lenders have been criticized for not lending to more low income buyers (particularly minorities). Several years ago, the Fed and Congress started passing laws and reworking the way mortgages are processed. this gave the lending institutions wiggle room to invent new wild and wacky ways to lend money. This gave rise to the subprime loan (basically lending money to people with lousy credit) and the Adjustable Rate Mortgage (which remains solid with a low interest rate for the first few years and then gets adjusted to meet the market every year afterwards).

This gave people who previously had no chance of owning a home an opportunity. Unfortunately, it didn't give them all the information they needed. You had a lot of people buying way more house than they could afford and not knowing some pretty important facts about home buying.

This also gave and opportunity to less than scrupulous lenders and brokers who had a whole crop of people with lots of eagerness, but very little wisdom. There was blood in the water and the sharks went a-feeding. I've actually got a horror story about somebody who was royally fucked by his financial adviser this way.

Also, you get an influx of "flippers". People that bought homes in order to turn around a sell them. A friend of mine has been trying to do this for a while now, but can't seem to get moving. Apparently, a lot of them, especially out West are going under. Whole communities were built assuming buyers would come flocking in, but that didn't happen. I think part of the problem is people were buying houses they could sell rather than buying houses they would live in themselves.

So, Bush and the government step in again and what looks to me like offers a huge bail out to the borrowers and lenders. Needless to say, I'm a little pissed. I worked my ass off to make sure I could handle a mortgage, maintenance, utilities etc etc. I look for every bit of information I can on the topic. I basically make certain that I'm ready to own. Now, people who weren't ready and are getting bit for it are getting my tax dollars to get off the hook. Same for the lenders that were either dumb enough or unethical enough to oblige them.

however, I do recognize that we couldn't just let all those mortgages fall into default. Besides the immediate impact on the economy, there would be long term affects. With all those people losing their homes, there would be fewer property taxes paying for schools, cops and firefighters (among other social services). My own expenses would increase because there would be fewer people sharing the load. Also, my Roth IRA, my 401(k) and other investments are actually holding bonds backed by mortgages.

Something had to be done, but I didn't really want a bail out. and I certainly want the current system scrapped and a return to the old one.
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