| Author |
Previous Topic | Next Topic |
|
AlliedFinancial
76 Posts |
 Posted - 05/11/2008 : 06:04:10 AM
|
| 2005 -2007 So when the market was great there was the neg am loans that everybody was selling. some sold it to investors that were flipping houses which made sense to them but at the same time LO's were selling it to borrowers that could not afford the I/O payment and the fully amortized payment, so they liked the minimum payment because it was the lowest payment and the pitch was ((CASH FLOW))even though they were increasing their loan balance and they had no idea what they were getting into because the LO did not explain how the loan worked, they were only looking to make big bucks, almost every loan was at least 12,000 or more in revenue. The other kind of loan that was sold was subprime loans which a lot of Loan officers were selling to the borrowers and telling them I will follow up with you in about 6 months to a year to refi again when their credit score was reasonable enough to get a better rate. Most of the time the LO either forgot about the borrowers after they got their commission or the borrower did not qualify to refinance again because of the LTV (declining market). A lot of mortgage brokers did not care about these borrowers and some of you that are reading this were probably one of those LO's that made a s**h load of money and did not care about the borrower. So as we all know that is why we are where we are today. A lot of people los their home and you know what I believe in karma so if you did a borrower wrong its going to come back to you my friend. Well no one knew what was going to happen in august 2007. Who's fault is it? The lender or the loan officer???? I think we should blame both the lender and the loan officers were only looking to make money. Why is it that when a borrower can't afford to make their payment or they are in trouble financially they lender gives them a higher rate?? It does not make sense. I think it should be the other way around, the borrowers that are going through financial stress because of whatever the reason is the lender should try to help them out and give them a lower rate so they can keep their property, instead they qualify for a much higher rate. So the lender does not care about anyone as we all know. Now people are loosing their homes which they probably broke their back to buy a home in a first place. I think the lenders should stop the Adjustable Rate Mortgages once and for all. Although we make our money when someone has to refi when their fixed loan turns into an ARM after 5, 7, or 10 years, it's wrong for the lender to provide such product.. what if the borrower does not qualify then because of LTV or being upside down or fico score?? then what they lose their home?? That's wrong!! LO's should of never sold an option arm loan to any borrower that could not afford to pay the fully amortized payment, the lenders should of never put this type of loan on the market!! This type of loan should only be for investors that want to flip houses with no prepay and for borrowers that qualify full doc only. By the way a lot of borrowers that I speak to say " I had no idea there was a pre pay on my loan and I got burnt last time I refinanced, the LO never told me that this product was a NEG AM and I can't trust anyone anymore". Besides the fact that there was so much FRAUD going on.. these LO's thought that they were putting the borrower in a better situation by creating fake W2's and paystub would put the borrowers in a better situation to get them to qualify for a loan they thought wrong.. not only the home owner is going to lose their home but at the same time look at what the lenders have done now ((Strict guidelines)) So how does this make the good hard working LO's look when you’re trying to sell them a good loan. Now it’s just embarrassing to call yourself a mortgage broker, because when people hear mortgage they think you as a scu*bag. It's because you have a 17 year old guy pitching a borrower on the phone that has no idea what he's talking about and can't wait to get paid no matter what situation he/she puts the borrower in..Of course not everyone cares so much about getting paid but SOME people try to sell a legit loan. I went to a borrower’s house the other day and the first thing she should me was a newspaper that said "Mortgage fraud". It's all over the news guys.. We look bad and a lot of borrowers that still qualify to refinance DO NOT TRUST US because of what they know about Mortgage brokers.. We should change the name Mortgage to something else and start over fresh. When you tell a borrower you are a mortgage broker it sounds to them like I'm here to screw you and give you a high rate and charge you a lot of fees. If we did business the right way this would of never happened, we could all still make a lot of money!!!!! So the bottom line is that some of you messed up and so did the lenders. What's next... What do you guys are doing on the side besides mortgages??? The guidelines to qualify someone for a loan is getting harder and harder.. My over all question is that why do some people mess things up for everyone else?? |
|
TimmyZ1
644 Posts |
Posted - 05/11/2008 : 08:15:35 AM
|
| Paragraphs or Cliff notes please? I'm sure it took you a while to write that but god just looking at it hurts my eyes |
|
|
1stintegritymort
1289 Posts |
Posted - 05/11/2008 : 09:20:52 AM
|
What's next... What do you guys are doing on the side besides mortgages??? The guidelines to qualify someone for a loan is getting harder and harder.. My over all question is that why do some people mess things up for everyone else??
if you are doing anything on the side, and not concentrating and devoting all your time on mortgages, then chances are you won't make it. you can't expect to make it in this tough time if you are spending hours and hours on something else. you should get out now if you are.
when you say why do some people mess things up for everyone else... you need to remember that the majority of the LO's who pitched the subprime worked for subprime lenders and brokers because it was a lot easier to get the loan closed. most broker's that magically appeared during the boom did just subprime. even if they got a 680 credit score borrower with a 70 ltv they still put them in subprime because of how easy it was. there was the greed factor. companies did not care about putting the borrower in the best loan. it was about who could make the most in fee per month. thats what you call a chop shop. the broker's that disappear over night, that is a classic example of what they are. i will bet you anything you want that 80% of those broker shops are closed up. the ones that are still open are trying to learn FHA but they will soon realize that its a totally different game. they cant play by the same rules as before or they will get fined, lose their license or go to jail.
you should not worry about what other people did in our industry. whats done is done and there is nothing we can do to change the past. all we can do is try to make sure it never happens again. we are already seeing this happen as the stricter UW guidelines will improve loan quality and when investors see that these new loans have a lower default rate, the MBS will come back to a normal spread of the 10 year note. if you can make it for another couple years while the majority gets out of the business, you will be set. from now until 2010 we will see plenty of changes. licensing requirements will get stricter. we will all probably need to take classes, pass a test and get our fingerprint cards done when they establish the nationwide licensing system. once this is in place, there wont be anymore games. we will see a lot of changes and they should all be for the good of our industry. i just want to see the lenders and correspondents make their LO's go through the same as us broker's to make it a level playing field. i dont think that will happen, but that is ok too. |
|
|
mortgagemessiah
7907 Posts |
Posted - 05/11/2008 : 09:39:53 AM
|
| You need to adapt, improvise and overcome. If you can't do that, save the drama for your mama. |
|
|
jvanpetten
2218 Posts |
Posted - 05/11/2008 : 09:54:49 AM
|
I second that, I only read the first couple lines of both the long posts and stopped. If you spent as much time developing business (it is out there)as you do posting that long of a post, you might at least make enough in these times to survive. I admit, it has not been easy, but things are looking up. Marketing, marketing, marketing, marketing..........that never changes.
quote:
Originally posted by mortgagemessiah
You need to adapt, improvise and overcome. If you can't do that, save the drama for your mama.
|
|
|
Back9
171 Posts |
Posted - 05/11/2008 : 10:02:45 AM
|
| 1994 |
|
|
| |
Previous Topic | Next Topic |
|
|
|
Search for: 
