Middlemen Mortgage BrokersI want to buy a house, but Ido not have any money tomake down payment nor I can Sure, I can help you get apay regular installments for loan a loan for your newloan. Can you help me ?? house… Mortgage Broker
Middlemen Mortgage Brokers Since the value of the new house you will buy, will always go up in the future, you need not make any down payment. Moreover, initially you will need to pay very low rate of interest on the loan taken which will be increased in the future.Sub prime MortgageBorrower Broker
Middlemen Mortgage Brokers Why shouldn’t I get you a loan ? The actually loan will be given by a bank andYou guys are awesome. I will get my commission on it. I don’tAre you really willing to care whether you pay back or not.get me a loan forbuying a new house..?Sub prime MortgageBorrower Broker
BANK FOR ALL We should get rid of these crappy loans quickly. They are Do you think they just stinking get us can really our office. What do you suggest? out of trouble ? Yes Sir!! They can. They are from the top We can take help from league business schools of the world. They the REALLY SMART are really smart. We will sell these loans guys at Wall to them and they will perform some Street, New York. financial magic on these loans.MANAGER
“ Really Smart” Investment bankers Pheww..!! We shall get rid of these bad loans as soon as possible. They are just stinking our office badly They are just useless.Smart Guy Subordinate
“ Really Smart” Investment bankers I have got an idea… We will create a new security and use these crappy mortgages as collateral. We will call it a CDO. We can sell those CDO’s to investors and promise them t pay back as mortgages are paid off. I am “Really Smart”. But, crap is a crap. I don’t get it. Let me explain it to you.Smart Guy Subordinate
“ Really Smart” Investment bankers Individually these are a bunch of crappy loans. But, if we pool them together, then only a few of them are expected to go bad-NOT ALL. And since housing prices will continue to go up in the future, we have little to worry about. I know it. Boss, you are “Really Smart.” TUSSI GREAT HO..!!Smart Guy Subordinate
“ Really Smart” Investment bankers So, you have managed to create AAA and BBB securitiesWe will also go ahead to buy insurance out of a pile of stinky, riskyfor these securities. By this, the rating mortgage loans.agencies will give a “very good” rating Boss, you are a genius…for these securities. Smart Guy Subordinate
“ Really Smart” Investment bankersNo. To get rid of this, we will create ashell company in the Hululu islands. We This is all great. But, won’t wewill transfer all such mortgage loans in have to show all these crappythe balance sheet of that shell company. mortgages used as a collateral in our balance sheet??The fancy name for it will be “SpecialPurpose Vehicle.”Smart Guy Subordinate
“ Really Smart” Investment bankersTo insurance companies, banks, small Okay, and who are we going totowns in Norway, school boards in sell these securities to ?Kansas – to anyone who is looking for ahigh quality and safe investment.Smart Guy Subordinate
Then startedthe defaults bythe sub primeborrowers...
Consumer Grievance AgencySir, I request you to order the securityissuing companies to show greatertransparency regarding their financialreporting
Hey man… we are not receiving ourmonthly payments.
Banks and Financial Institution cross theworld faced similar problems