Careers Vanish After Subprime 'Free Fall'

[marmar]

from CNN Money, via AOL:



Careers Vanish After Subprime 'Free Fall'
Kent and Mysti Cope were well-paid executives at subprime lenders who never thought the industry could disappear overnight. Now they're just trying to get by.
By CHRIS ISIDORE, CNNMONEY.COM SENIOR WRITER


SAN CLEMENTE, Calif. (CNNMoney.com) -- Kent and Mysti Cope met and fell in love working for one of the nation's top subprime lenders. Now, their life has been turned upside down after the sudden implosion of the subprime mortgage industry.

Mysti was one of the last people out the door at New Century Financial, once the nation's No. 2 subprime lender. She had been in charge of e-commerce customer service with dozens of employees reporting to her.It was at New Century where the Copes met in 2000.

Kent worked for several of the firms that helped give birth to the industry, which specializes in making loans to people with less-than-perfect credit, in the 1990s. He has been out of work since August when he was laid off by Friedman, Billings, Ramsey Group (FBR) unit First NLC Financial Services.

"We're still both in shock that it could go from something so good to so bad so quick," said Kent, 59. "New Century in 60 days went from top of the heap to out of business."

The two didn't say exactly how much money they made at their last jobs but Kent admitted they each had six-figure incomes.

Today, they're trying to get by on his unemployment benefits of about $450 a week, which covers only about an eighth of the basic payments they owe every month.

Only $1,800 to cover $10,000 in bills ........(more)

The complete piece is at: http://jobs.aol.com/article/_a/nursing-recession-proof-job-market/20080402155209990002?ncid=AOLCOMMjobsDYNLprim0001

[baby_mouse]

1. Shrug. Welcome to free market capitalism.

I sympathise, but don't understand the attitude. Booms never last. Everyone knows this...

[Bigmack]

2. I am not an unsympathetic person...

but those folks had to know that the loans their company were giving were very iffy. Certainly memos must have floated around that talked about qualifying people who simply weren't going to be able to pay if their payments went up.

Shit... even I knew the subprimes were dangerous.

I hope these two... and folks like them... get back on their feet, but part of me says that they should have known the house of cards was gonna fold. Maybe they should have kept those bills down below $10K.

[madaboutharry]

4. A lot of people never stop to think

down the road or evaluate things "long term." A former neighbor, a real estate agent, was cleaning up during the real estate boom in Arizona and had the attitude "not in Tucson" as things started to slide in other parts of the country. The market in Tucson is now in the toilet and the last house she sold was probably mine.

[ThomWV]

3. Those weren't careers, they were just temporary scam jobs.

[annabanana]

6. like those boiler rooms.. they have to move around a lot. .. n/t

[Prisoner_Number_Six]

5. Perhaps they could apply for a loan.

:shrug:

[RaleighNCDUer]

7. They each had six figure income, and now are stuggling to pay the bills.

Because they treated their own finances as cavalierly as their clients'.

I blame television. It always depicts people working ordinary jobs, but living way beyond what those jobs would provide, so people think that's the norm. It pushes people to live beyond their means.

Smart people can be soooo dumb.

[KansDem]

9. "I blame television."

I agree. TeeVee--and movies particularly--show ordinary people in huge houses. Whenever I see a recent movie, it seems like the houses all have huge kitchens. None of these homes look anything like mine, and the owners all appear to have average-type jobs!

[RaleighNCDUer]

11. No kidding. Watch the cop shows, and see the places the cops live;

any REAL cops living like that would be under investigation by IA.

Of course, the reason for that is that you need a large space for filming - wide doorways, high ceilings, just to allow different perspectives for the cameras.

[Fumesucker]

14. Hmmm...

"Roseanne" seemed to depict lower/lower middle class life fairly well..

It was on TV for quite a while.

"We're so far beyond broke that the light from broke won't reach us for ten billion years".. -One of my favorite Roseanne lines.

[RaleighNCDUer]

15. Possibly one reason why it was as successful as it was.

It, against the norm, reflected a reality that the watching public knew.

Much like "The Honeymooner" living in their cramped 4-room walk-up, as compared to "Leave it to Beaver" with the huge house in the suburbs and a father with no visible means of support.

[MadHound]

8. Making money and careers off the backs of the poor and gullible,

Sorry, but I have little sympathy.

[coriolis]

10. So now the question is...can Kent and Mysti Cope?

:evilgrin:

[Lex]

12. " they've made cutbacks: trading in Kent's Corvette for a Suburban and getting rid of the gardener"

My heart weeps for them.

:wtf:

[juno jones]

13. Hopefully the SOB who f*cked us is in the same boat.

Bet that 5 grand he swiindled from me and Mr.Feb doesn't go far in SoCal. I've been told I have a case, I can't afford to sue him, but I bet there's someone out there who will.

[Chimichurri]

16. They colluded in the greatest ponzi scheme ever perpetrated on

the American public for their own personal gain.