I was doing my daily routine today, which usually starts off with a look at the morning market on Bloomberg, and then progresses to reading cnnmoney.com. One of the first articles I saw was Wow, I could've had a prime mortgage. It discusses the fact that 15-35% of all people in subprime loans were given to people that could have qualified for prime loans. I knew this was an issue, but not to this extent. Towards the end of 2006 and start of 2007, I had 4, yes 4, clients that I was refinancing, and all 4 of them were perfect scenarios. Perfect credit, great income, easy deals. Every single one of them had prepayment penalties, when they were told that they didn't. There is no reason, at any Loan to Value (the amount borrowered, compared to value of the property), that they should e...
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