Who else worked in banking/lending/finance from 2006-2008; explain how fukkin CRAZY shyt was then

[Ed MOTHERFUCKING G]

I was in year one if my career fresh out of college in 2006. I worked in lending and subprime lending as many fresh grads did, cause it was hot as hell.

I noticed things were odd because products i used to kill it in, started to go away...one by one....

• 125% LTV first mortgage
• 110% home equity
• Stated income (maybe paystub) 80% first mortgage)

We didnt know any better...sales pressure was fukkin crazy: we were just pissed our products were going away....


Then whispers started going around about lenders closing. And by that i mean...you work here tuesday...you dont at LUNCH on tuesday.

The big one was NEW CENTURY. I remember each of these days like yesterday. Here is a timeline of their collapse. Most of this is in the same fukkin week:

March 8 2007. New Century Financial Corporation announced that, "as a result of the current constrained funding capacity, the company has elected to cease accepting loan applications from prospective borrowers effective immediately, while the company seeks to obtain additional funding capacity,"

March 9 2007. the company reported that it had failed to meet certain minimum financial targets required by its warehouse lenders and disclosed that it is the subject of a federal criminal investigation. New Century Financial Corporation further indicated that it does not have the cash to pay creditors who are demanding their money.

March 12, 2007. The New York Stock Exchange stated it halted trading of New Century Financial Corporation while it decides whether to keep listing the company's securities in light of the liquidity problems.
[e MF g note: their market cap went from like 1.1 billion to a couple million that day]

March 20, 2007. New Century Financial Corporation said that it can no longer sell mortgage loans to Fannie Mae or act as the primary servicer of mortgage loans for the government sponsored enterprise. In a filing with the Securities and Exchange Commission, New Century Financial Corporation said that Fannie Mae terminated "for cause" a mortgage selling and servicing contract with it citing alleged breaches of that contract and others. New Century Financial Corporation said it received a notice of breach and termination on March 14, 2007.

April 2, 2007. It filed for Chapter 11 bankruptcy. New Century Financial Corporation and its related entities filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court, District of Delaware located in Wilmington, Delaware. New Century Financial Corporation listed liabilities of more than $100 million. New Century Financial Corporation also announced that the employment of about 3,200 people, more than half the workforce, will be terminated.[6]
May 25, 2007. They filed their form 8-K,[7] a day after stating that they "...probably overstated 2005 earnings."[8]

Every day i would log in for the day and go to some site like subprimemeltdown.com or something that was a bulletin of all this shyt. Every day it was another lender. The company line was "not us; we do the right thing its a testament to what we do for customers that we are still here " we'll see... money was tough to come across, and the grass is always greener in this field so i started applying elsewhere.


I dipped summer 2007. My former employer didnt make it to thanksgiving . i Went to a bank cause they (ALL) were hiring. We had a level of arrogance that was so funny in retrospect. i had a reigonal manager that literally said, near the end of 2007 " fukk these other dumbass banks, let em fail "

(more coming)

 

[无名的]

So what new ways have you come up with to screw people?

 

[Meta Reign]

Bro we was doing 100LTV% financing stated on the docs, stated on the assets. Seller was paying closing costs. No paystubs. 80/20 loans all the way. shyt was crazy. I was taking people's credit and boosting it by piggybacking on some cards my man had, and then sell them a crib. shyt was too easy. 680 ficogot you all of that.

 

[Ed MOTHERFUCKING G]

Words cannot describe how fukkin crazy september and october 2008 was. I was licensed in investments at the time, and was here for all of these days...dealing with customers who were losing fukkin everything

Top ten biggest dropoffs ever in dow history:

• 9/29/2008 10365.45 -777.68 -6.98
  • this was maybe the longest day ever. The headline on yahoo finance and cnn was 72 font at least and the sky was FALLING
• 10/15/2008 8577.91 -733.08 -7.87
  • I THINK this was the day that i was on a conference call from franklin templeton IIRC...they had a "senior loan fund" which was sold as a real REAL safe low risk mutual fund for traditional cd savers....the guy said "theres a SMALL..SMALL amount of bad loans in the portfolio but if you have a 2-3 year outlook...you should be fine
    • Did he just say 2-3 years
• 9/17/2001 8920.7 -684.81 -7.13
• 12/1/2008 8149.09 -679.95 -7.7
  • This day was like "STILL? Wtf "
• 10/9/2008 8579.19 -678.91 -7.33
• 4/14/2000 10305.77 -617.78 -5.66
• 10/27/1997 7161.15 -554.26 -7.18
• 10/22/2008 8519.21 -514.45 -5.69
• 8/31/1998 7539.07 -512.61 -6.37
• 10/7/2008 9447.11 -508.39 -5.11

I seen a old lady have a fukkin panic attack over a $40k loss...i had to call the cops on someone who refused to leave the office...shyt was crazy.


Early 2009 we started taking (gentlemens ) bets on what banks would fail next. I thought for sure TCF bank was dead in the water...most thought national city and anb amro would collapse...they won . Wachovia failed the dayafter their ceo was on cnbc walking thru their balance sheet on national tv, fukking LYING and everyone knew it .




Anyway, enough history lesson...anyone else work in the field then?

 

[Ed MOTHERFUCKING G]

Bro we was doing 100LTV% financing stated on the docs, stated on the assets. Seller was paying closing costs. No paystubs. 80/20 loans all the way. shyt was crazy. I was taking people's credit and boosting it by piggybacking on some cards my man had, and then sell them a crib. shyt was too easy. 680 ficogot you all of that.

Option ARMs on deck everywhere...THAT shyt was insane

 

[无名的]

Any perspective on the current status of home lending? Just from a limited sample size of people I know, I feel like I'm starting to see signs of lending to people who might not be the best candidates again.

 

[Ed MOTHERFUCKING G]

Any perspective on the current status of home lending? Just from a limited sample size of people I know, I feel like I'm starting to see signs of lending to people who might not be the best candidates again.

"They" are creating another bubble, this time arguably more stable because its through managing inventory.

A coworker of mine is selling his house right now...3 bed, semi finshed basement..boring shyt...where we're from its maybe 275-325k.

He is getting MULTIPLE offers for over $575k now...buyers arent finding what they want so theyre paying a premium...which is now the new market value. This is the story in desirable cities like seattle, cali, dallas, phoenix, probably the carolinas, etc. Slow development and banks not reposessing/not flooding the market has created a major sellers market...i dont know if its sustainable but its skyrocketing homeprices in specific cities.

In those cities...income is also going up so its all keeping up...elsewhere i suspect otherwise.

 

[TLR Is Mental Poison]

Who was that dude from ... I think his name was #1?

He was in this kind of backroom "finance", shytting on everyone HARD.... 07, 08 rolled around, dude disappeared

High key I think he oned himself with the father son and holy spirit.... if you know what I mean

Man I wish I knew things and was liquid back then... the "comeback"

 

[No1]

"They" are creating another bubble, this time arguably more stable because its through managing inventory.

A coworker of mine is selling his house right now...3 bed, semi finshed basement..boring shyt...where we're from its maybe 275-325k.

He is getting MULTIPLE offers for over $575k now...buyers arent finding what they want so theyre paying a premium...which is now the new market value. This is the story in desirable cities like seattle, cali, dallas, phoenix, probably the carolinas, etc. Slow development and banks not reposessing/not flooding the market has created a major sellers market...i dont know if its sustainable but its skyrocketing homeprices in specific cities.

In those cities...income is also going up so its all keeping up...elsewhere i suspect otherwise.

Man, I remember being at U of M and this one dude was like my big homie when I was a freshmen. Dude had made it to Lehman Brothers after graduation like

Within like 3 months that shyt crashed. I was like . He landed on his feet though, but at the time I was like

 

[Ed MOTHERFUCKING G]

Man, I remember being at U of M and this one dude was like my big homie when I was a freshmen. Dude had made it to Lehman Brothers after graduation like

Within like 3 months that shyt crashed. I was like . He landed on his feet though, but at the time I was like

A LOT of shattered dreams for fresh grads...glad i was nimble at the time

 

[TLR Is Mental Poison]

Yea I knew a breh who was going to be an actuarial scientist for Lehman, I think. I'm pretty sure he "got the job" spring of 08

shyt flipped

But the finance world is right back to where it was thanks to the Federal Reserve's sorcery

 

[Serious]

I was in year one if my career fresh out of college in 2006. I worked in lending and subprime lending as many fresh grads did, cause it was hot as hell.

dude i was in middle school....

 

[Ed MOTHERFUCKING G]

dude i was in middle school....

...ok...?

 

[blackzeus]

I saw sh*t with my own eyes like:

Copy and paste bank statements
Job verification to cell phones
Unappraised chattel (e.g. art, memorbilia) being accepted as collateral
Packaging of subprime loans mixed in with prime loans to ignorant secondary market buyers
Warehouse lines of credit to people with no experience
Table funding for brokers who couldn't properly calculate debt-to-income ratio
People not taking my honest advice, I told a couple that just because the money was available doesn't mean they should overextend themselves, they told me to f*ck off and bought a half million dollar house anyway
Account executives for the secondary/primary market pushing us to close more loans (e.g. we don't give a f*ck how you get it done, send the f*ckin' paperwork).

And this is from a guy who had no banking experience. I'm glad now they require you to have a college degree and 2 years experience to be a broker. Glad the secondary market is almost non-existent. People really can't help themselves, if you give them high-interest uncollateralized money, they will take it. It's crazy how little cotdamn sense adults have sometimes. I was arguing with people 2x my age, and they wouldn't listen to what was f*ckin' common sense. That's why I left after the first year and got into commercial/hard money, at least I was dealing with educated people. I feel sorry, but Americans have no one to blame but themselves

 

[Ed MOTHERFUCKING G]

I saw sh*t with my own eyes like:

Copy and paste bank statements
Job verification to cell phones
Unappraised chattel (e.g. art, memorbilia) being accepted as collateral
Packaging of subprime loans mixed in with prime loans to ignorant secondary market buyers
Warehouse lines of credit to people with no experience
Table funding for brokers who couldn't properly calculate debt-to-income ratio
People not taking my honest advice, I told a couple that just because the money was available doesn't mean they should overextend themselves, they told me to f*ck off and bought a half million dollar house anyway
Account executives for the secondary/primary market pushing us to close more loans (e.g. we don't give a f*ck how you get it done, send the f*ckin' paperwork).

And this is from a guy who had no banking experience. I'm glad now they require you to have a college degree and 2 years experience to be a broker. Glad the secondary market is almost non-existent. People really can't help themselves, if you give them high-interest uncollateralized money, they will take it. It's crazy how little cotdamn sense adults have sometimes. I was arguing with people 2x my age, and they wouldn't listen to what was f*ckin' common sense. That's why I left after the first year and got into commercial/hard money, at least I was dealing with educated people. I feel sorry, but Americans have no one to blame but themselves

Yup, that never changed