Comments on: Mr Mortgage: Be Careful – False Bottom in Defaults & Foreclosures Coming

By: Angela

Angela — Thu, 25 Sep 2008 23:48:12 +0000

2. Dear Senator’s
3.
4. I have been a mortgage broker for approx. 17 years. I live in a small town and see my client’s across my desk. I do not buy leads and have never offered an opt-arm (neg-am) loan in all my years of origination. I have done allot of 2 year fixed rate loans for people that could not qualify for a 30 year conventional mortgage. When I wrote these loans I counseled my clients on paying their bills on time and for me to pull their credit approx. 2 months before their loans adjust so I can take them out of it and into a 30 year fixed. I was very stern in telling them I can’t help you if you don’t keep your bills paid on time esp. their mortgage. Now, for me to help my repeat clients I need an FHA license. In order to get that you have to have 63,000.00 net worth with 12,500.00 liquid. 2 years ago I had that!! Now I don’t, however I still have a 776 mid credit score and current corp. tax returns (and I pay my taxes on time) as I am Inc. Why can’t the feds come into my office do an audit of my files (as they would see I don’t rip people and price my loans with no more than maybe a .50 ysp on my loans. Our association doesn’t help I quit paying dues 2 years ago as I don’t believe they represent the small broker shops. So, now they want all the small broker shops to sign up under a net branch (cause bigger offices have the net worth) they want the now loan officer, with little or no liability and the net branch manager is in another state just collecting their 10% of every loan you originate and for the loan officer (was a broker) now will not want to take a cut in pay just so they can write FHA and have to give 10% of every loan they write and also collect a $450.00 admin fee on every file. HELP. . . WHO IS PAYING FOR THIS FHA LIC.??? OH NO!!! IT’S THE CONSUMER ONCE AGAIN. . . AND THE LOAN OFFICER IS NOT BEING SUPERVISED!!!! Is this helping our industry?? I have seen LO’s make allot of money on FHA. . why don’t they restrict how much LO’s get paid on these loans. . ??? I still believe you should restrict LO’s from ripping clients by limiting the ysp on every loan!!! Also, let me state. . did you know that when I pull credit for real estate loans purposes the Credit Bureaus within 30 minutes have sold my clients info to a lead company and they are now harassing my client.. Oh and by the way I just spent 2 hours on a Sat. talking to them about their family and their kids sports and where they grew up . . and now some guy in a telemarketing room is calling them now to say “I really care about you and your family”. . you know the one that never shows up at the closing table . . #1 He is out of state and #2 that rate is higher and the fees are too. . and the person at the title company can’t get a hold of the loan officer. . ??????? Can we stop the bureaus from selling trigger leads. . why do I have to lock up my files behind closed doors, in a drawer. . where if you want to see you have to have my clients authorization. Please make the bureaus quit selling my clients info. for profit. . . I educate my clients and they don’t want to be bothered. . yes I know about opt out.. it takes time to take effect. . and in the meantime they can’t even put their phone down to eat dinner. . .!!
Also,, , now with the fed’s taking over fannie and freddie. . does this mean now that all loans are going to FHA. . and the FHA lic. requirement??? Regards, Angela
By Angela Adams Ceo/Broker The Mortgage House Inc, 541-229-0339

By: Mr. Mortgage’s Guide to the TRUTH! » Mortgage Defaults Already at $50bb Per Month…$700bb Won’t Go Too Far!

Tue, 23 Sep 2008 18:45:15 +0000

[...] the Good Old Days When .gov Didn’t Run the Show?Meredith Whitney Scares the Crap out of EveryoneMr Mortgage: Be Careful – False Bottom in Defaults & Foreclosures ComingLehman Unsecured Creditors – Loss Leader BoardThe Paradigm Shift : “Too Big to Bail Out”Lehman, [...]

By: mtg911

mtg911 — Wed, 17 Sep 2008 05:51:26 +0000

Sharkie:

What we need is a graph of appreciation over the last 30 years (3-4%) graphed though the years of 2000-present against the actual increase and decreas in home prices over the same period also against average wages during that period and it will become evident that we have a long way to go. Here in FL we had 15-20% app over 4-5 years. So lets say 100%+ during that time. In reality over 5 years at 3% we should have moved only 15%. Combine all that with a full doc world prices are going to crash. Un-verified income is the only reason we are in this mess. If we were proving income over the last 5 years how little everyone actually makes, prices would have stayed stable.

By: RT

RT — Tue, 16 Sep 2008 16:38:04 +0000

I would assume then we should see a greater drop off in existing home sales then seasonality would suggest. It has been widely publicised that 40% of existing home sales in CA are short or foreclosed sales. If those sales decrease by 80%, that suggests a ‘non-seasonal’ drop off of 32%. Would you agree?

By: Ron

Ron — Tue, 16 Sep 2008 08:42:11 +0000

I Look at the default and trustte sale listings from the central valley of ca every week. And in confirmation of your article, The numbers in the past few weeks are suddenly only about 50-60% of what they were previously.Defaults in Stanislaus county alone were in the neighborhood of 400 per week.OK this threw me for a loop. Is Henry saying the lenders et al. are bypassing the foreclosure process somehow and selling assets out from under the borrower? Am I reading that correctly? Is that legal? So is the borrower staying in the home (I assume we’re talking about houses here?) or getting evicted?

By: oh brother

oh brother — Tue, 16 Sep 2008 01:45:26 +0000

MM,

Could you please provide further info/explanation in regards to Henry’s comment?

Thnx in advance

By: Patrick

Patrick — Mon, 15 Sep 2008 23:07:33 +0000

I am in the Antioch, Brentwood section of Contra Costa County in the Bay Area. I noticed this lack of NOD’s about 4 weeks ago and could not understand it either. Thank you for the enlightenment.

BTW, I do mortgage loan audits by hand for attorneys and clients in order to get lenders to cooperate with loan mods. Business is absolutely nuts for me.

By: linda

linda — Mon, 15 Sep 2008 22:05:37 +0000

Lenders, receivers, trustees, and sometimes, the developers themselves, are arranging asset sales that transfer title directly from the defaulting borrowers to the real estate equivalent of jobbers.

OK this threw me for a loop. Is Henry saying the lenders et al. are bypassing the foreclosure process somehow and selling assets out from under the borrower? Am I reading that correctly? Is that legal? So is the borrower staying in the home (I assume we’re talking about houses here?) or getting evicted?

By: Sharkie

Sharkie — Mon, 15 Sep 2008 21:43:47 +0000

Out of the Peak — you hit a chord today.

I find that I am continually “at a loss” to try and describe to many of my friends (who don’t continually read these blogs) why the bottom is nowhere near. The movie “Babel” comes to mind.

I have friends that are actually closing on houses in the next few weeks. Condos, even. Here in the Orange County / Irvine area.

“Rates are fantastic. And the market’s picking up. The last 5 properties we bid on turned into bidding wars with investors! And I’m getting a super deal!”

A few are even convinced that they will see significant appreciation in these properties within a year or two!

Like you said, they’re not looking at the real, underlying fundamentals…..just on the immediate-term stuff that realtors will use to sell the idea of a bottomed-out market.

I know they’re delusional, but how do you get someone to see the light???

I remember the phrase, something along the lines of “A man can’t be made to hear the truth, if his conviction that he will make a lot of money hinges upon him not hearing it.” JP Morgan?

Seriously —- this thing is SO BIG, requiring such a fundamental “paradigm shift” in people’s perceptions, that it simply may be more than most are capable of grasping. Or want to grasp. The mass media does not help the case, that’s for sure!

And so I try to warn them, but end up instead, sitting and watching my friends happily board and sail on the Titanic into the next group of icebergs…….!

What do you do?

Take care of yourselves!!!!

By: Out at the Peak

Out at the Peak — Mon, 15 Sep 2008 21:06:12 +0000

I know too many people (with college degrees) who think the bottom is near. They don’t read into numbers or other facts. They just go with the general feeling of “it can’t be bad forever.”

I explain to them that I do look at all the numbers I can from various sources and it’s an easy conclusion that the bottom isn’t near.

At least none are in a rush to get into anything.