The Dark Side of Mortgage Lending, an Introduction

After twenty years in the mortgage business I have seen the good, the bad and the ugly in mortgage lending.  These articles are a series on mostly the bad and the ugly.  The stories are all true and exemplify the problems and issues that confront the consumer with regards to mortgage financing.  

All of the stories and the commentary should be seen as lessons on what to watch for, what to learn about and how to obtain the best mortgage loan without being a pawn in the battle with the Dark Side of Mortgage Lending. 

The Dark Side of Mortgage Lending of course involves bad lenders, bad loan decisions and deceitful loan originators.  The Dark Side of Mortgages also involves greedy borrowers, dishonest mortgage loan applicants and mortgage applicants and consumer that are overwhelmed by the process. 

Mortgage losses and home financing nightmares are caused by both sides, however; I am not as critical of the consumer because I believe the mortgage lender has some fiduciary responsibility to the borrower and should be held to a higher standard.  Having said that, most borrowers are not off the hook with regards to buying a home that was too big or taking out a mortgage loan payment that was that was beyond their budget from the get go.  These borrowers may have been easy targets to be influenced by the Dark Side of Mortgage Lending but personal responsibility on the part of the home loan borrower cannot be ignored.  

These are stories about the problems in mortgage lending.  Problems that cost consumers 100’s of dollars, 1,000’s of dollars and sometimes well north of that figure.  As time has passed, the Dark Side of Mortgage Lending has cost all U.S tax payers.  Loss of equity through housing depreciation, loss of income due to higher taxes needed to pay for the cleanup of this mess and loss of opportunity as the Dark Side has clearly squeezed the economy and brought about an appalling number of job losses. 

Read, learn, laugh, cry and make sure you take the time to understand what it takes to get the best mortgage to suit your needs.  Do not cross over to the Dark Side.