Another Loan Mod Story

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MisterVA

6235 Posts

Posted - 07/18/2008 : 12:58:27 PM

Former client of mine had sold their home which I financed and refinanced for them and built their own home in a neighboring town. They just called and were offered a loan mod of their option ARM which appears to be a temporary respite with a lower margin for 2-3 years. They are nearly upside down and the loan mod docs are very confusing to them. I went out on a limb and asked if their original loan was done by a notary. BINGO! No explanation of docs, assurances from the sweatshop LO that they could refi in 2 yrs without a problem, etc ad nauseum.

They were referred to a local attorney to review the loan mod and I advised them to also contact the State Banking Dept to let them know of their plight. All they want is a fixed rate that will allow them to budget from month to month. They both have good jobs and I know their credit the last time I did a loan for them ws very good. I did not do construction loans or I'd have pursued that avenue with them when they sold.

I hate notary closings. LOs who think they are saving the client money by cutting down on closing fees are out to lunch. Why would anyone want to have the biggest financial commitment they will ever make summed up by some guy who says, "Sign here. Sign here."?

gc46

386 Posts

Posted - 07/18/2008 : 3:38:43 PM

A sad story we in the mortgage business have heard many times. One thing I have recently done, is offering loan modifications on loans that cannot be done. It is to do, plus it makes you look like gold in the borrowers eyes..

If you want to speak to someone other than a modification specialist's to find out more information. Contact James Anzelone - Vice President of Partnership Development with the American Modification Agency. He is actively recruiting mortgage companies and individual loan officers across america.

Office # 516-506-4100 ext 2018 Cell 631-748-1200

.

mortgagemessiah

8003 Posts

Posted - 07/18/2008 : 3:43:06 PM

Paul,

Call me or check out the new site www.mfi-miami.com

Hustler12

1205 Posts

Posted - 07/18/2008 : 3:46:45 PM

Hey Paul,

If they need someone to handle their loan mod, I would be willing to do it at my cost which is $1,100 just to help. Let me know if I can be of service.

mortgagemessiah

8003 Posts

Posted - 07/18/2008 : 3:52:48 PM

$1100 for a mod? That's high.

Hustler12

1205 Posts

Posted - 07/18/2008 : 3:56:59 PM

its my cost.

Hustler12

1205 Posts

Posted - 07/18/2008 : 3:58:01 PM

quote:
Originally posted by mortgagemessiah

Paul,

Call me or check out the new site www.mfi-miami.com

Let me ask what you are charging for a loan audit?

hpmfinancial

1487 Posts

Posted - 07/18/2008 : 4:02:45 PM

quote:
Originally posted by Hustler12

quote:
Originally posted by mortgagemessiah

Paul,

Call me or check out the new site www.mfi-miami.com

Let me ask what you are charging for a loan audit?

$1100 for a mod is a good price. Steve charges $500 just to review loan docs.

Hustler12

1205 Posts

Posted - 07/18/2008 : 4:04:40 PM

quote:
Originally posted by mortgagemessiah

Paul,

Call me or check out the new site www.mfi-miami.com

$500 for a loan audit??? Anyone knows that they can use compliancease.com and do a loan audit for $10...right?

Hustler12

1205 Posts

Posted - 07/18/2008 : 4:05:20 PM

quote:
Originally posted by hpmfinancial

quote:
Originally posted by Hustler12

quote:
Originally posted by mortgagemessiah

Paul,

Call me or check out the new site www.mfi-miami.com

Let me ask what you are charging for a loan audit?
$1100 for a mod is a good price. Steve charges $500 just to review loan docs.

Thank you Hayden. I wasn't trying to even promote my biz, I was just trying to say that I felt bad for his client and would do it at cost.

mortgagemessiah

8003 Posts

Posted - 07/18/2008 : 4:06:21 PM

And my attorney charge $500 for the mod

mortgagemessiah

8003 Posts

Posted - 07/18/2008 : 4:07:38 PM

Actually that $500 is if we get it as a referral. If it's a client we market or bring in we charge between $250-$350 depending on the file.

mortgagemessiah

8003 Posts

Posted - 07/18/2008 : 4:08:55 PM

and Compliance Ease and Compliance.com have been known to have serious errors in it.

smartbusiness

55 Posts

Posted - 07/18/2008 : 4:13:17 PM

Thank God my loan mod guy didn't charge me anything for my remod cuz my lender ended up charging me 1,000 for it! It was well worth it though. They put me on the best loan ever. Bank is in Arkansas, Little Rock.

slants

4261 Posts

Posted - 07/18/2008 : 4:36:41 PM

quote:
Originally posted by MisterVA

Former client of mine had sold their home which I financed and refinanced for them and built their own home in a neighboring town. They just called and were offered a loan mod of their option ARM which appears to be a temporary respite with a lower margin for 2-3 years. They are nearly upside down and the loan mod docs are very confusing to them. I went out on a limb and asked if their original loan was done by a notary. BINGO! No explanation of docs, assurances from the sweatshop LO that they could refi in 2 yrs without a problem, etc ad nauseum.

They were referred to a local attorney to review the loan mod and I advised them to also contact the State Banking Dept to let them know of their plight. All they want is a fixed rate that will allow them to budget from month to month. They both have good jobs and I know their credit the last time I did a loan for them ws very good. I did not do construction loans or I'd have pursued that avenue with them when they sold.

I hate notary closings. LOs who think they are saving the client money by cutting down on closing fees are out to lunch. Why would anyone want to have the biggest financial commitment they will ever make summed up by some guy who says, "Sign here. Sign here."?

In escrow closing states, the borrower signs with a notary either at the escrow office or at their home or business. Attorneys are not a part of the process, unless they want to retain one for independent review of the closing. I have never seen anyone do that for a mortgage closing.

ppulatie

2238 Posts

Posted - 07/18/2008 : 4:45:06 PM

Compliancease *****. I received an audit done from one of the major mod companies. They used compliancease as the basis of the audit. And Guess what?

The whole audit sucked. Compliancease had APR and HOEPA violations listed that were calculated out by hand were not violations. It also listed violations that were not supported by case law.

Plus, the people who were doing the rest of the audit not covered by the software missed very important parts and also came to conclusions not supported by the facts. If a lawyer had taken this audit to court, he would have been laughed out of the courtroom by everyone. It was that bad.

Amateurs and software will not and cannot replace what experience provides.

My audits are $360. The lawyer is extra. But I provide support for the lawyer that few others will provide.

MisterVA

6235 Posts

Posted - 07/18/2008 : 7:12:43 PM

They have until the 24th to return the docs. And of course there is the arbitration language in there from what I could tell over the phone. They talked to some Cornell guy on the mod. Not sure if it is Cornell U or something else.

MisterVA

6235 Posts

Posted - 07/18/2008 : 7:14:06 PM

quote:
Originally posted by slants

quote:
Originally posted by MisterVA

Former client of mine had sold their home which I financed and refinanced for them and built their own home in a neighboring town. They just called and were offered a loan mod of their option ARM which appears to be a temporary respite with a lower margin for 2-3 years. They are nearly upside down and the loan mod docs are very confusing to them. I went out on a limb and asked if their original loan was done by a notary. BINGO! No explanation of docs, assurances from the sweatshop LO that they could refi in 2 yrs without a problem, etc ad nauseum.

They were referred to a local attorney to review the loan mod and I advised them to also contact the State Banking Dept to let them know of their plight. All they want is a fixed rate that will allow them to budget from month to month. They both have good jobs and I know their credit the last time I did a loan for them ws very good. I did not do construction loans or I'd have pursued that avenue with them when they sold.

I hate notary closings. LOs who think they are saving the client money by cutting down on closing fees are out to lunch. Why would anyone want to have the biggest financial commitment they will ever make summed up by some guy who says, "Sign here. Sign here."?
In escrow closing states, the borrower signs with a notary either at the escrow office or at their home or business. Attorneys are not a part of the process, unless they want to retain one for independent review of the closing. I have never seen anyone do that for a mortgage closing.

In NH there are title companies that do closings. But the docs are ALWAYS explained. Of course, most CS LOs don't attend closings.

darkstar

17095 Posts

Posted - 07/19/2008 : 09:02:14 AM

>>>Anyone knows that they can use compliancease.com and do a loan audit for $10...right?

I'm all for a good deal, but I don't think I could even trust something this important if I only paid $10, it has too much value and importance if done right, doing it that cheap is a flag to me...JMHO...

ppulatie

2238 Posts

Posted - 07/19/2008 : 09:48:59 AM

Compliancease is really designed for lenders who are going to sell the loan. It is not designed for the purposes that some companies that use it as an audit tool. I would love to take its findings and tear it apart on the witness stand.

As to notaries, the truth is that they cannot explain docs. Once they start to explain them, they cross over from being a notary and turn into a signing agent for the lender and title company. Now they are as liable as others in the loan process if litigation occurs.

And the notaries do get "invited to the party" quite often.

quote:
Originally posted by darkstar

>>>Anyone knows that they can use compliancease.com and do a loan audit for $10...right?

I'm all for a good deal, but I don't think I could even trust something this important if I only paid $10, it has too much value and importance if done right, doing it that cheap is a flag to me...JMHO...

teamlend

356 Posts

Posted - 07/19/2008 : 10:44:21 AM

I'm all for the audit that you,Paul and Chuck offer. Makes sense. Attorney=$500.00 for the Mod- that's fine also. Who is processing this mod? and how much more? Are you saying for $1000.00 will include- Audit-Attorney-and the most important part processing of the mod? All those calls to the lenders to get the modification approved and closed takes quite a bit of time. I just don't see the attorney doing all this or even paying someone to process it for the $500.00 fee. What am I missing. do you do the audit and process for the $500.00? that sounds like a negative return for the income also.

Thanks
Kelly

quote:
Originally posted by mortgagemessiah

And my attorney charge $500 for the mod

MisterVA

6235 Posts

Posted - 07/19/2008 : 1:45:36 PM

quote:
Originally posted by ppulatie

Compliancease is really designed for lenders who are going to sell the loan. It is not designed for the purposes that some companies that use it as an audit tool. I would love to take its findings and tear it apart on the witness stand.

As to notaries, the truth is that they cannot explain docs. Once they start to explain them, they cross over from being a notary and turn into a signing agent for the lender and title company. Now they are as liable as others in the loan process if litigation occurs.

And the notaries do get "invited to the party" quite often.

quote:
Originally posted by darkstar

>>>Anyone knows that they can use compliancease.com and do a loan audit for $10...right?

I'm all for a good deal, but I don't think I could even trust something this important if I only paid $10, it has too much value and importance if done right, doing it that cheap is a flag to me...JMHO...

Not disagreeing with their role, Patrick. I just think they should not even HAVE a role.

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