Ex-Subprime Brokers Help Troubled Homeowners - NPR- Topic: Loans With Quick Sign
Before the bottom fell out of the subprime loan market, many big financial firms had an unquenchable thirst for subprime loans. The former brokers understand the “exploding ARM loans” and the “pick-a-pay loans,” Marks says. Darryl Toney worked in a local mortgage outfit in Chicago that had dozens of brokers selling subprime loans. Toney says he was taught to give homeowners the hard sell to get them into aggressive high-interest loans — even if it meant convincing them to refinance, instead of sticking with a better fixed-rate loan that they could afford. Toney says he wasn’t dishonest, but a lot of other brokers were because they told people that risky adjustable loans had fixed rates. After a year of working as a subprime mortgage broker, Toney was getting calls from customers who couldn’t afford their loans. Learn more
No Tags