| Author |
Previous Topic | Next Topic |
|
VVance
2522 Posts |
 Posted - 05/21/2008 : 1:23:51 PM
|
I'm sure these are a source of pride to be made public. Anyone seen these or have a link?
Bank Faces Questions Over Bay Area Home Lending
Reporting
Anna Werner OAKLAND (CBS 5) ¯ They've been one of the Bay Area's biggest lenders for years: World Savings, now part of Wachovia. But some housing advocates are complaining about the way World Savings sold many of their loans during the mortgage boom.
CBS 5 Investigates obtained internal World Savings training videos produced during the height of the mortgage boom. They are videos instructing World Savings employees how to sell loans to people like Willie Bryant.
http://cbs5.com/local/mortgage.world.savings.2.728889.html |
|
CoralSnake
11208 Posts |
Posted - 05/21/2008 : 2:00:11 PM
|
It is Worlds fault that Bryant took a payment on a loan that he couldnt afford?
Of course it is, because the LO called it 'deferred interest', which means that hell never have to pay. |
|
|
clarenceworley
4360 Posts |
Posted - 05/21/2008 : 2:02:43 PM
|
| What about deferred student loans...do they need to be paid back? World actually is one of the more reputable neg am lenders... |
|
|
MacMortgage
70 Posts |
Posted - 05/21/2008 : 2:23:51 PM
|
| The press will only continue to get worse. |
|
|
LOANGUYNYC
105 Posts |
Posted - 05/21/2008 : 2:27:52 PM
|
quote:
Originally posted by MacMortgage
The press will only continue to get worse.
Agreed, and i'm sure they'll also find a way to make World sound like a mortgage broker so we get more negative press....who was it that made these programs available to sell in the first place??! It wasn't the lenders was it! |
|
|
lemeuss
622 Posts |
Posted - 05/21/2008 : 2:32:34 PM
|
| does no one see anything wrong w/this? Its not Willie being dumb, its a broker sugarcoating a confusing product to make a commission...to a retired, fixed income individual, the option ARM is about as complex as it gets, and Ive spoken to a few people who couldnt grasp the idea....I lost a few deals to retired folks who went w/another broker offering an option ARM when I could clearly see they couldn't afford the payments...and these borrowers were so clueless they had the audacity of saying I was giving them a high rate at 6% because "the other guy is giving me a 2.5%". Wachovia/World is a reputable co. with a good product for the right person....doesn't mean those selling the product are in the same class. |
|
|
mganovsky
2114 Posts |
Posted - 05/21/2008 : 3:31:44 PM
|
wah!wah!wah!. Why did he not read the note and riders at closing, it gives a full explanation. I have never been an advocate of the pay option ARM and have only offered it to people that fit there financial situation. I gave a full written explanation to them then explained it to them in detail. I would never give the Pay Option just so some one could buy more house, because simply when the loan reset Iknew they could not afford the loan.
Most of the LO's that gave the option ARM did not understand it themselves, they saw a way of making 3 points and not being beat on Int rate by any one.
But with the cost of housing in CA how else could any one buy a 1300 Sq foot shack for $350,000.
Sure world took advantage of folks, so did MB' and LO's but the buyer has to take some responsibility for is own greedy actions. |
|
|
lucky1s
3640 Posts |
Posted - 05/21/2008 : 3:36:58 PM
|
| They must get paid bank for pushing those crappy option arms. |
|
|
mojojojo_1
863 Posts |
Posted - 05/21/2008 : 5:23:01 PM
|
"does no one see anything wrong w/this? Its not Willie being dumb, its a broker sugarcoating a confusing product to make a commission...to a retired, fixed income individual, the option ARM is about as complex as it gets, and Ive spoken to a few people who couldnt grasp the idea....I lost a few deals to retired folks who went w/another broker offering an option ARM when I could clearly see they couldn't afford the payments...and these borrowers were so clueless they had the audacity of saying I was giving them a high rate at 6% because "the other guy is giving me a 2.5%". Wachovia/World is a reputable co. with a good product for the right person....doesn't mean those selling the product are in the same class."
I AGREE. people who cant read those contracts signed them. Im guessing in attorney states the amount of people in options is much lower. YES the home owners should be better educated, but when you its 500 fico scores back in the hayday, come on!
Bottom line though is that I am seeing the bank as being really screwed in the end, guess who is going to have a portfolio of non preforming loans come recast time. give it 2 yrs tops
why can you not get pricing on any other product at world? even at a brick and mortar you have to fight to get what a 30yr rate is |
|
|
homer5
364 Posts |
Posted - 05/21/2008 : 6:00:26 PM
|
It's up to the loan officer to clearly and concisely explain the product. That means explaining the negative aspects of the product as well. We aren't order takers where the client is expected to understand the product at time of purchase.
We are supposed to bring value to the mortgage transaction. Not twist the details of mortgage products so the client cannot make an educated choice.
When making the interest only or minimum payment, the client must understand the principal is not being paid down or that the principal amount is growing due to deferred interest. If the client doesn't understand these aspects of the loan, then the loan is not suitable for the borrower. Plain and simple.
The nuances of the negam loan go far beyond a basic understanding of mortgages. To leave it up to the borrower to understand a negam loan on their own, is lazy and irresponsible on any loan officer's part. |
|
|
ppulatie
2278 Posts |
Posted - 05/21/2008 : 6:05:08 PM
|
If loan officers can't understand the neg-am, how could a borrower be expected to understand it?
Please explain...... |
|
|
homer5
364 Posts |
Posted - 05/21/2008 : 6:09:52 PM
|
| If a loan officer doesn't understand it, then they shouldn't sell it. They should stick to selling fully am'd products or perhaps they don't belong in the business. |
|
|
mganovsky
2114 Posts |
Posted - 05/21/2008 : 6:12:54 PM
|
I agree homer, I had the world rep come by once every couple of weeks and he would always want me to use the word "deffered Interest vs Neg AM, and I would always come back with it is what it is NEG AM is NEG AM any way you look at it.
I have known MG Brkrs who only pushed the option arm strictly because of the 3% YSP, and no one could beat the 1% or .95% Int, they could care less about the customer and would show the chart that world gave them showing the break down of all payments and telling them that because of the 7 1/2% increase in pymt each 12 months that in 7 years the neg am would be gone. And these guys did not even understand the complexity of the loan, they said exactly what the world rep told them to say. And after they signed some one up they would laugh about it. There are too many folks in our biz that are just like that.
I hope world gets sued, and every other lender who gave out that loan. |
|
|
CoolMtgGuy
4109 Posts |
Posted - 05/21/2008 : 6:29:08 PM
|
quote:
Originally posted by CoralSnake
It is Worlds fault that Bryant took a payment on a loan that he couldnt afford?
Of course it is, because the LO called it 'deferred interest', which means that hell never have to pay.
Are you kidding me? Since when is deferred interest equal to never having to pay it? |
|
|
RGK2394
1245 Posts |
Posted - 05/21/2008 : 6:30:56 PM
|
quote:
Originally posted by Boner in Sweatpants
Why does Willie live in home he can't afford? Maybe Willie should get a better paying job or downsize to a home he can afford. Willie doesn't sound too bright.
LOL- DUDE, BEST NAME ON BO! |
|
|
superthor1022
2797 Posts |
Posted - 05/21/2008 : 7:39:26 PM
|
quote:
Originally posted by lucky1s
They must get paid bank for pushing those crappy option arms.
I don't think they are crappy option arms. Just crappy loan officers who don't understand the product selling them to people that don't understand it either. It's not a bad product.
-thor
|
|
|
Quicksilver
4854 Posts |
Posted - 05/21/2008 : 8:25:35 PM
|
| My old office a few years ago, there was a boiler room on the same floor, about 15 guys crammed in a tiny room, all they pounded all day was neg-am loans. They had been reported a few times, nothing happened. All they would do is close down, and following week have a new llc or net branch, they did that 5 times when I was on that floor. I ran into one of the TM's awhile ago and he told me what they would do screwing people over (meaning the others not him), he actually left b/c he wasn't comfortable. I mean I would hear them tell borrowers it was 1% fixed for 30 years with no neg am etc. |
|
|
mudshark
3873 Posts |
Posted - 05/23/2008 : 5:58:28 PM
|
| Wait until someone turns in CWs Neg-Am training material. The World stuff is lightweight compared to that. "Don't worry about a thing. Your home will always continue to appreciate in value." |
|
|
rtrefflich
3935 Posts |
Posted - 05/23/2008 : 6:31:01 PM
|
I would have to agree with you on this one, they are the best Option ARMS out there hands down. The 10 yr 125% recast virtually eliminates payment shock and allows borrowers the option of paying less, thus giving them the opportunity to earn a greater rate of return on their money.
The loans were oversold and its true a lot of people don't fully understand them, but they are the best ones out there.
quote:
Originally posted by superthor1022
quote:
Originally posted by lucky1s
They must get paid bank for pushing those crappy option arms.
I don't think they are crappy option arms. Just crappy loan officers who don't understand the product selling them to people that don't understand it either. It's not a bad product.
-thor
|
|
|
| |
Previous Topic | Next Topic |
|
Search for: 
