LIVING OFF DIVIDENDS & PASSIVE INCOME

According to the Mortgage Lender Implode-o-Meter Website, 21 of the top 25 sub-prime lenders have closed their doors or gone out of business since december 2006.

According to various sources, 25% of all borrowers last year were sub-prime and another 25% were speculators(or atleast people who can afford a 2nd home, investors and some speculators). Assuming minimum overlap between the 2 groups, that means only 50% of the loans last year went to homeowners who could actually afford them! Okay, thats a bit of a stretch but no wonder the sub-prime lenders are doing poorly.

WAMU was smart to sell its sub-prime portfolio to a french pension fund and HSBC who paid $8 billion for a sub-prime lending company and is now putting aside another $9 billion for bad loans wasn’t.

• Why your mortgage broker is so rich? Spoke to a mortgage broker last night. He says business is down but not too bad. Apparently he specialized in sub-prime loans and it wasn't uncommon for him to make 6 points off a loan. thats $24,000 commission off a $300,000 loan. If that isn't obscene profiteering I don't know......
• After Sub-prime, Is Commercial Property Next? Based on my own experiences of being allowed to borrow 40 times my annual income to purchase investment property, I knew the real estate party was going to end badly for many borrowers, banks and eventually tax-payers. I had tried  shorting Countrywide, which was the largest lender of mortgages, last......
• Homes For Everyday Heroes? According to the FirstHomebuilders.com, based out of florida, they're selling homes to everyday heroes. You can buy one of their brand new homes with $500 down and as little as $795 per month.Considering that the cheapest homes are in $150,000 range, thats sounds like 102% financing with an Interest-only payment......

• Prosper's People-to-People Lending Market Survey SAN FRANCISCO--(BUSINESS WIRE)--Prosper (www.prosper.com), America's largest people-to-people lending marketplace, today introduced its first monthly People-to-People Lending Market Survey. Prosper's People-to-People Lending Market Survey will survey the marketplace each month to provide key statistics including: membership and loan volume statistics; marketplace returns; borrower rates; mix of prime, near prime and sub-prime......
• What Exactly is an Oil Speculator? You've heard the buzz word "oil speculator" shouted from the high heavens of Capital Hill, you've seen Americans at the gas pumps blaming these anonymous likely Caucasian men in suits for the high oil prices we are "suffering" with these days, but have you stopped to actually learn what......
• Renting out your creditworthiness Want to buy a house?  Don't have the best credit history?  Don't even have a passable one?No problem!  Just borrow some stranger's stellar credit history, apply for a loan, get a rate you can afford, and give the credit history back when you're done with it!Sound too good to be......

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