Letters to the Editor
Casting blame on underwritersBy Inman News, Tuesday, December 11, 2007.
Re: 'Job cuts in mortgage lending surpass 80,000' (Dec. 10)
To me, it's a real shame that not only the loan originators, but ultimately the underwriters, were extending credit so easily during the last 10 years. Even more unfortunate was the fact that anyone, with the exception of someone who was certain they would be out of their house within three years, would have taken out an ARM.
I was asking myself back in 2000 why in the world anyone would approve an ARM during a 40-year historic low period. Rates had absolutely nowhere to go but up!
Even so, the underwriters continued to approve them. I blame them more so than the originators, because unfortunately there are no barriers to entry when it comes to getting a loan officer's license.
Meanwhile, the global economy has yet to feel the full force of this fiasco.
Re: 'When will market hit bottom?' (Dec. 10)
The skies above are always the blackest in the middle of a storm. We are always pessimistic in the midst of a downpour. But let the horizon glimmer with blue and we start to put away our umbrellas.
Your interview of all those so-called economic experts tells us absolutely nothing. Not one of them have or had a real estate license with which they worked with the human element looking for homes. They work only with figures and tables.
Not one of them has experienced the infighting of a real estate market. Not one of them knows the human factor of what truly governs a real estate market. They live in the past with their numbers. They tell you you're going to need your umbrella when it rains and your suntan lotion when the temperature reaches into the 90s.
It is the basic law of supply and demand. Builders built too many homes (so what else is new?) for their consumption. And of course, the Realtor lobbyists in Washington, D.C., who asked for lower interest rates, didn't know when enough was enough.
Richard C Dennis
Sun City, Calif.
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