The Day the Subprime Died

Posted by: Dean Foust on August 19, 2007

donmclean.jpgThere’s a cute little diddy makes the rounds on the Internet, “The Day the Subprime Died,” sung to the tune of Don McLean’s 1971 hit “American Pie.” The laments of a mortgage broker who feasted on subprime loans. Here are the lyrics (and FYI, “b/c” refers to borrowers with “B” or “C” credit, which are non-conforming or “subprime” credit classifications; “Cramer” is Jim Cramer of CNBC’s Mad Money, and Fremont is Fremont Mortgage).

The Day the Subprime Died

A long, long time ago…
I can still remember
How that yield spread made me smile.
And I knew if I had my chance
Those borrowers I could finance
And I could pay my bills for a while.

But February made me shiver
With every good faith I’d deliver.
Bad news on my e-mail;
I just lost one more sale.

I can’t remember if I cried
When I saw the Fremont slide
But something touched me deep inside
The day the Subprime died.

So bye-bye, B\C money supply.
Sent my package to four lenders
But they all asked me why.
And good old boys were on a high
Singin’, “This’ll be the day the loans die,
This’ll be the day the loans die.”

Did you write some B\C loans,
Did you blow bucks on the iPhone?,
Did that nut Cramer tell you so?
Do you believe in rate control,
Can FHA save your borrower's soul,
Why is underwriting today so damn slow?

Well, I know you'll have to cut those fees
And you're wondering who has moved your cheese.
Bernanke's on the news.
You can't afford the MBA dues.

I was a semi-rich middle-aged bronkin' buck
With a master plan and a lot of pluck,
But I knew I was out of luck
The day the Subprime died.

So bye-bye, B\C money supply.
Sent my package to four lenders
But they all asked me why.
And good old boys were on a high
Singin', "This'll be the day the loans die."

Reader Comments

David A. Porter

August 20, 2007 7:04 PM

Dean,

Funny..sad..but funny.

Kevin M. Cheek

August 25, 2007 7:18 AM

I wrote this a few weeks ago and posted it on SourceMedia's Mortgage Grapeveine. Amazing how it has shot around the innertubes. Here is the link to the original:

http://www.brokeruniverse.com/grapevine/thread/?thread=440224

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BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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