Banking Law

Yesterday, Tanta at Calculated Risk posted the following public service video prepared by Freddie Mac and launched on YouTube.

In her customary pithy style, Tanta gives a synopsis of the spot:

To summarize: if you're in the situation you're in with an unaffordable mortgage because some fast-talking guy in a suit asked you to sign a bunch of papers you didn't understand, you are not going to be in a better situation because some other fast-talking guy in a suit asked you to sign a bunch more papers you don't understand.

Apparently, Tanta also enjoys the ending of the ad, where potential victims slam the door in the face of the fraudster. Some of us get a kick out of doing that to legitimate lenders, as well.

Tanta's commenters are an engaging lot, as most of them appear to be involved in real estate, banking, the mortgage biz, or other aspects of financial services. Some of their comments were amusing. On the other hand, for a real taste of what John Q. Public thinks about these issues, you need to go to YouTube and peruse the comments there. Among my favorites:

I am OUTRAGED that this video portrays a white man in a tie cheating minorities and the elderly. Are there no minority fraudsters? I am SICK of my gender and ethnicity being portrayed as the bad guy. I've been in this business for 10 years and never cheated anyone- but I have sure seen the Hispanic market taken advantage of because they end up trusting someone from their own background. Gimme a BREAK!

Yeah, if they'd made a spot with Ricardo Montalban cheating Jennifer Lopez out her home, I'm sure that would have made it much more realistic.

As a Latino real estate broker, I would like to see this video speaking Spanish. Why? every day many Latino are falling victims of scams such at this and in many cases the predators are also Latinos, because they know there is no to minimum assistance in Spanish or people just don't know where to get it.

I'm going to complain to the Mexican government that when I bought my vacation home in Manzanillo, all of the friggin' closing documents were in Spanish. What's UP with THAT???

The video describes a perfectly legal transaction. This is typical heavy handed democrat propaganda. Pure Bullspit! To portray a perfectly good pre-forclosure sale transaction as a scam! At least this 'scam' will leave the former owners with a little money in their pocket. The foreclosure sales certainly will not! There are a lot more honest investors out there than scoundrels. And of course, business is business!

I was going to write some smart-alec reply to that one, until I noticed that the commenter was named "TonySoprano666".

I think I've been scammed. I'm in the top 10% of earners in the USA and? I can't afford a home, but welfare mothers, illegal immigrants, and strawberry pickers can get loans for $700K+. How is it possible? BUBBLE, BABY!! LOL

Why do they let Dick Vitale comment on YouTube? In addition, strawberry pickers were capped at $650,000. Everyone knows that.