I overheard an interesting conversation one morning as I was sitting at Starbucks. It was between a mortgage broker and a guy who represents a company that sells leads to people in the mortgage industry. The list he gave consisted of people who have adjustable rate mortgages coming due and need to refinance.
It is amazing to me how people in the industry actually understand very little about what is happening in their own industry. We will call the guy from the lead company “lead guy”. We will call the guy from the mortgage company “mortgage guy”.
Lead guy is explaining to the mortgage guy that he can give him all types of leads based on any type of criteria. Mortgage guy states that he read that the Dallas Fort Worth area might be in the top five areas in the country for foreclosures when it is all said and done.
He said that he didn’t want any mortgages below $100,000 or any sub-prime debt. He is going to be paying up to $1 a lead. Unfortunately, he doesn’t realize that this is not just a sub-prime problem. People with good credit as well as bad credit are going into foreclosure. People with all types of balances (both big and small) are going into foreclosures.
The lead guy is selling him a list of the problem. The problem is adjustable rate mortgages. Unfortunately, the mortgage guy has no idea that this goes way beyond sub-prime issues. Even more unfortunate is the $1 he is going to pay per lead.
Speaking of mailers, I received a mailer from Countrywide today showing me how I could refinance my mortgage to a 40 YEAR MORTGAGE and save money each month.
The irresponsibility just never stops.
Copyright© 2007 Prudent Money and Bob Brooks. All rights reserved.
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