"We Barely Say No To Anyone"
Coast Capital Savings has a come-on that should make any lender blush. "Coast Capital Savings No Worry Mortgages™ now make it easier than ever to become a homeowner. We’ve relaxed our lending guidelines to the point where just about anyone qualifies."
"There are all kinds of tiny credit blemishes, like a forgotten parking ticket that can make you hideously unattractive to other lending institutions. But we’re not that picky. Even from here we can say you look good to us. Honestly, we barely say no to anyone."
Maybe this is what these guys were talking about. "OCC examiners are finding that banks are using credit scores to evaluate their HELOC portfolios instead of assessing the borrowers' ability to repay the loans. 'We urge bank management to regularly assess the vulnerability of their bank's portfolio to changes in the consumers' ability to pay and potential declines in home values,' the acting comptroller told the BAI conference." Thanks to the readers who posted the links!
7 Comments:
I thought your quotes were a joke, a kind of humerous interpertation. I can not believe that is their actual sales pitch!
And if you are sitting down, you can read their little booklet advising against any sort of worry about borrowing. No down payment? No problem, just borrow against your retirement account....
Oh boy.
http://www.coastcapitalsavings.com/documents/NoWorryMortgage_Booklet.pdf
This is IN FACT the sign of the top of the bubble! The sales pitch is a self-parody and just as bad as the worst of the dot coms in 2000.
What a mixture of comedy and tragedy!
Coast Capital Savings is a Canadian company.
Wonder if they are willing to lend you money to buy US homes.
If you read the "Just about anyone qualifies mortgage helper booklet", you'll notice that they try and appeal to the "Fear Factor" reality tv crowd. It appears that they are going after the lowest common denominator with their marketing. - I almost thought this was some kind of joke when I read the pamphlet.
Nicely demolishes the myth of conservative, tight-fisted Canadians. My bank (Bank of Nova Scotia) has a long-running campaign called something like "find the money", and they don't mean dig around under the cushions on the couch.
I live in Victoria, BC, Canada, the home base of this company and also one of the bubbliest housing markets in the nation. Between March and April this year our average single family home price went from $426,250 to $457,400, a ONE MONTH rise of 7.1 percent. This is in a city with an average household income of about $60,000. Coast Capital is also offering a "lucky" mortgage applicant the chance to win $50,000 for a down-payment on the house being mortgaged. Since one usually needs a down payment BEFORE applying, if one has a down payment at all, the assumption is that this ad campaign is targeting the zero down, 100 percent amortization crowd. Coast Capital's recent newspaper ad copy read "At these home prices, this $50,000 might come in very handy!"
So, looks like the predatory lenders are really chumming the water here to draw in the local sub-prime borrowers. Great! Maybe I'll take out a 100 percent financed with 3 percent cash back ARM, I/O with a 30 year amortization (backed by a taxpayer-sponsored government mortgage insurance policy from the Canada Mortgage and Housing Corporation), and hope that I'll "win" my down payment!
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