Alt-A not subprime -Get it right
I have the distinct honor of being the first to comment on this topic.
Often time loan officers sell there alt-a customers a sup-prime loan because the commission on sub-prime loans are more and the approval process is easier.
This is a big disservice to the customers and make us all look bad as an industry.
The current problems of our real estate market has a little to do with this, too. While does Alt-a customers with sub-prime loans may not realized what happened, the truth is that they were sold a faulty loan product and now they will suffer because of it thought higher payments at rate adjustments.
Many of unknowing customers will end up having payments they can not afford and will result in missing other payments to make the higher payment on their homes. This will bring their credit rating down from an Alt-A into the subprime category, thus preventing them from ever getting a prime loan without the proper credit rebuilding and repair.
This is happening all across the country. And I ask the loan officers out there who reads to realize the consequences of their past actions and refrain from doing this in the future.
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