I guess they’re not kidding

SUBPRIME IS BAAAACK

GE Financial, the GE Mortgage folks are bringing back the subprime loan in the UK!  Woops, they are not calling it SUBPRIME, because “That suggests the inability to pay!” No, now they’re called “COMPLEX-PRIME” loans.

The interest rate on these mortgages will be fixed for two years at 5.99% after which time it will become a floating rate. (Sounds like the kind of loan that brought on the Great Mortgage Debacle) Oh yes, Borrowers can get this loan, even if they have defaulted on two loans previously including mortgages, and even if they have an outstanding judgment!

Next thing they'll bring back is the 'pick-a-payment-plan' and delude people into believing that a mortgage payment of $300.00 a month is the amortizing payment for a $300,000 house. I’m glad WAMU has gone to Mortgage Purgatory, as they were the inventors of the “Option Arm” the quickest way to foreclosure on the STUPIDER side of the mortgage debacle. . . as if the 2/28 ARM wasn't bad enough.

By the way, it’s not only GE which is a US based company, HSBC the Swiss banking giant is a co-perpetrator.

If the Brits are doing it, can we be far behind?

IMNTBHO

Dave Skibowski