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There is a lot being written about these days regarding the "fall-out" in the mortgage industry, specifically in the subprime arena.

Quite a bit of commentary as to the effects and affects of the related markets. I think that the answer t

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

o the question "What happened?" is a lot more simple than analysis of various economic indicators. Greed is what happened. That is the one word answer to which everything ultimately boils down. However, I know that I need to qualify that

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

broad brush stroke with some evidence and specifics.

I am sure that one could argue that there are a number of facets involved in the so-called, collapse of the subprime market. As a brief aside, the subprime market has not in any way co

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

lapsed. However, there are several companies within the subprime arena that have indeed collapsed. At any rate, I think Paretto's Principle applies here as it so often does in most situations. The fact is that at least 80% of the problem

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

ad to do with Greed, Irresponsibility, Lack of Ethics and Integrity and lack of Education and Training. What happened? Loan officers around the country knowingly put borrowers in harm's way. Loan officers helped scheme and package so call

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

ed "stated" loans where income verification was waived allowing loan officers to inflate income on the application to keep the balance of debt to income (or DTI ratio as it is known in the business) within underwriting guidelines.

In pl

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

in English? Loan officers were involved in lying about how much money a borrower really made so they could be approved for a home loan. Reminder: A loan, that if the underwriters actually knew what the income was....would decline the loan

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

Here is the real problem, by the way. It's not the poor lender, who ultimately was lied to....it is the borrower, who with the help of or at the advice of...got a loan that greatly exceeded their ability to repay. They were doomed the m

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

nute they signed the application.

In many cases the loan officer knew that there was no way that this borrower or this family would ever really "survive" the loan...but hey, the borrower wanted it....so they got it! So integrity and ethic

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

s were sacrificed for the commission from a loan that likely will be the stranglehold that chokes the life out of the family's finances. In some instances the loan officer just didn't know any better. That simply attests to the lack of t

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

aining so many in our business get. Can you imagine? It is estimated that as many as 78% of all of the loan officers in the business today, has less than 3 years experience!

This is not so much a Subprime issue as it is a "Stated Loan" is

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

ue. Certainly, the fact that these borrowers credit suggested that they already struggled financially (and that...by the way is really what bad credit means for most people....that at some point, or currently, they struggle to pay all the

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

bills on time...or at all.) certainly adds fuel to the fire. But it is important to distinguish what the problem really was or is in order to avoid making the same mistake again...but furthermore not to tarnish the subprime borrower or le

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

nder for the wrong reasons. The problem lays much less with FICO score for most of these defaulting loans than it does with generous DTI (debt to income) guidelines or low or "no-doc" income or asset documentation. Some of these loans allo

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

ed for the stated DTI to be as high as 60 or 65%. This means that even if the income on the application was legit...and was not inflated (as so many were)....that 65% of the GROSS INCOME was being devoted to the housing payment!! If the in

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

ome was indeed inflated then many of these loans were extended to people that were likely carrying debt to income ratios more like 70-80%. You do not have to be a Certified Financial Planner to know that you cannot possibly dedicate three

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

quarters of your GROSS income to just your mortgage.

The fact that seems to be forgotten somewhere along the line is that the reason that there is an application in the first place is not to say "yes" but rather to say "no" when someone

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

does not meet the guidelines that protect BOTH parties.

As experts it is responsibility of the loan officer to advise people what they can and cannot afford...NOT to simply be a conduit to approvals for debt hungry borrowers. Loan offic

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

rs that can see the forest through the trees recognize that by helping their clients stay solvent in the long run they keep a client for life. For if they ultimately lose their home, they are of no use to that loan officer anymore.

The mo

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

tgage industry presents one of the most wonderful opportunities in the professional world today: An opportunity to serve, to help and to profit. For those who forgot about the first two, shall know what it is like to do without the third

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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