Originally Posted by crockett

Pretty much this but the the guys at the top let it continue and tried to cover it up.

I saw it first hand just before the housing crash. I was shopping for a place out in Austin and was pre-approved for a loan up to what I wanted to spend. The Realtor I was using kept telling me he could get me much more loan than what I was approved for but I wasn't really interested in more because it was a for investment.

I did however let him see what he could do just to see if I could get a better rate with the guy he worked with (was countrywide). He ended up getting me pre-approved through country wide for a shit load more than I knew I could afford and it was also a ARM which I specifically stated that I wouldn't do as I'd only accept a fixed rate.

I mean I told the loan guy straight up that I would not accept a ARM loan and he still came back with one thinking I wouldn't notice or would just do it.

I was a bit turned off at how the realtor and the loan guy was trying to push me into more than what I wanted so I decided to hold off on buying. It wasn't but 6 or 7 months later that the housing market started crashing, so I guess they saved my ass for being dirty rat bastards.