Protecting the Stupid is NOT the State's Job!
"Brad Cottrell was a paramedic when a friend introduced him to the high-rolling world of sub-prime mortgage lending.Within three years of landing a job with Ownit Mortgage Solutions Inc. in Agoura Hills, his salary had tripled. His wife quit working and they bought a 3,000-square-foot house in Camarillo."
"But late last year, defaults on risky loans began to rise. By December, Ownit was out of business, and the 35-year-old father of three was out of a job."It was a nightmare," he said. "I felt like I got hit by a Mack truck."
'"There's a lot of that going on. When Irvine-based New Century Financial Corp. on Monday became the latest mortgage company to file for bankruptcy protection, it handed 3,200 employees their walking papers."
"In California, mortgage industry job losses soared 367% in the first quarter. In California, the 3,679 mortgage industry jobs lost in the quarter pales compared with the 70,000 construction jobs that economists figure could disappear over the next two years."
By the way...
In March the number of houses on the market in the Bay Area jumped by more than 12,000 percent to just over 24,000. (??? 12,000% really??? who is their fact checker? 12,000 units maybe?)
News from Oregon...
"Now that many subprime lenders are going belly-up and causing jitters on Wall Street, housing advocates decided the time was ripe to seek new consumer protections for would-be customers. On Wednesday, the Senate Business Committee rolled out Senate Bill 965, which would enact new safeguards for home buyers against so-called "predatory lending."'
"Nearly one-third of all Oregon mortgages issued in 2005 required interest-only payments, according to the Oregon Center for Public Policy. Those buyers are banking on rising property values to boost equity in their homes. Many people are taking out negative-amortization loans, in which their loan principal grows rather than shrinks with each payment."
"Sen. Larry George, R-Sherwood, panned the bill. "If someone is being deceptive, I'm with you," George said. But it's not the state's role to "protect people from being stupid," he said."