excuses excuses, page-48

Mr Steve ....lol

Subprime in the US and in AUS are poles apart.

Did you know as part of a subprime loan in the US, if at any time the borrower wishes to discontinue the loan, they can give the keys back and walk away.....with no more to pay.

here in Australia u cant do that.

We also have the UCCC in Aus which controls how and who credit is lent to....the policy makers.

Subprime loans in Australia were brought about because we have such an anal red taped credit reporting burues that anyone with a blemish against their names have to go to a "non bank" lender to get a loan.

Whether the broker gets paid more commission or not is irrelevant.

large banks pay about .7%
non bank lenders about 1%

not that big a difference.

In fact when submitting a non bank loan......the lender will not accept the deal unless the borrower is gaining a financial advantage by doing so.

I suggest you stop listening to old men at the local bus stop.

The US were lending at 100% LVRs to people with no job, no income, no nothing.

In Australia we have mortgage insurers for loans over 80% LVR which cuts out that.

The insurers wont carry the banks debt risk unless they can clearly see an income.

Then there are low do and no doc loans.

This is where say a self employed person can declare they earn say 100,000 a year on a piece of peper when in fact they dont......but it gets them a loan.

Again these were doen at 80% LVR's to avoid mortgage insurance and yes some of these people took on loans they could not afford.

But comparing the US subprime to AUS is not somehting that is comparable imo.


PS.....I run a fairly large mortgage brokering firm....lol