Rick Santelli goes ballistic (CNBC) must watch!

[Briguy]

From the Chicago pits today trader Rick Santelli lets everyone know how a cross section of america feels about paying your neighbors mortgage with your tax dollars.

http://www.cnbc.com/id/15840232?video=1039849853

[peterb]

Ok, Brian.

I will bite. It's easy to throw rocks. What's the solution?

Peter

[bbh57]

Why dosent he comment about the taxpayer money given to bail out Wall street.

[Old'sCool]

What happened to all the MIP (Mortgage Insurance Premiums) required on a mortgage with less than 20% down payment?? Isn't MIP designed to pay the lender in case of borrower default??

[Islandtrader]

From the Chicago pits today trader Rick Santelli lets everyone know how a cross section of america feels about paying your neighbors mortgage with your tax dollars.

Back in 1943 Ayn Rand wrote this in her Novel the Fountainhead...I will paraphrase, but check out page 605 if you want the whole nine yards.

" I think it's a worthy undertaking--to provide a decent apartment for the man earning 15 dollars a week.

But not at the expense of other men.


Not if it raises the taxes,raise all other rent, and makes the person earning forty dollars live in a rat hole. They are the ones who pay the taxes, and the taxes raise there own rent. But they are the ones who provide money for the damn project.

But I'll be damned if I can see why a man worth forty must be penalized--and penalized in favor of the one who's less competent.

Sure, there are a lot of theories on the subject and volumes of discussion. But look at the results."



1943 Scary is it not?

[Snookerd]

What happened to all the MIP (Mortgage Insurance Premiums) required on a mortgage with less than 20% down payment?? Isn't MIP designed to pay the lender in case of borrower default??

MIP/PMI covers the original amount above the 80% loan to value. So it is assumed (ass-u&me)that the lender sells the house @ auction after foreclosure for 80% of the original value, then get their addition $$ back from the PMI/MIP company. This 20% max does very little when the value @ auction is 50% of original value.

Being in mortgages for over 15 years, I can tell you that when employed, perfect credit borrowers have no options on a refinance, that the sytem is broken. You can complain all you want about fairness-I agree, but the problem is picking up steam and no one has the perfect answer.

[McGillicuddy]

I understand that many folks have lost their incomes or should have never gotten their loans in the first place, thus they may have faced foreclosure. That's one thing. That happens and it's sad and too bad.

The thing that's really pissin' me off is that many people, even many with 6 figure incomes, bought great homes on 100% financing, thinking they'd turn a huge profit in a few years; and are just walking away from their loans. They are not really walking away from their homes, just their promise to repay the loan because for now it just seems like a bad investment. They are staying in the house and not making their payments. Then they hide behind the advice of a lawyer that says "we're suing the lender for misrepresentation" and whatever they come up with. These people are no more than amoral squatters who leaving the banks with a huge burden knowing the banks can't afford enough Guido's with baseball bats to clear them out.

They will cite bad lending practices, and that it's the bank's fault, and that they didn't understand the terms of the loans. Well they sure as hell willingly signed off on 50 pages of contracts before a notary, confirming both their promise to repay, and that indeed, they understood the terms of the contract.

These are the people the government should by chasing down and these are the people that people of integrity should be pissed at.

Likewise the We, the People, should insist that the loopholes for those unwilling to fulfill their obligations be eliminated so these squatters get no free ride. These folks are stockpiling money each month, living in their California homes for free, knowing their credit will be shot for a couple of years but at least they'll have cash flow at the expense of everyone else.

Maybe they should be forced to pay back 10 or 20 percent of their purchase price - effectively a reasonable down payment. That alone would give many people the impetus to fulfill their obligations.

I have no problem with loan modifications that allow more affordable payments like where the bank simply accept less profit by lowering the rate, or they make up that profit by longer loans at lower rates.

What I can't stand is people intentionally robbing the system at the expense of the rest. It's really a convoluted form of the Tragedy of the Commons.

Alrighty, then. I have vented.

[Finster]

I was talking to one of my sons friend parents and they're hitting hard times. Apparently they're three months behind on their mortgage, they went to the bank to catch up on one months and the bank would take it, said don't bother unless you can pay the whole thing. Unbeknown to them their mortgage was sold to Fannimae some time back.
So that just tells me that their going to get bailed out at our expense. And if that's the case we're going to have anarchy on our hands cause I don't think many folks are too sweet on the idea of mass welfare.
Maybe I should stop paying my small equity loan? I'd much rather put the money toward the Seavette. And I think that would be considered stimulus.

[Tiny]

Rick's great! He has had a lot to say regarding the bailout as well.

The reason mortgage insurance can't cover the difference is because they are all flat broke...radian, mgic, PMI...