A lender’s dilemma

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I recently penned a post for the Bloodhound Blog titled "Ethical dilemma with the current market" about a particular loan that I have been struggling with over the past few days. For anyone in the industry I recommend reading it as we are all facing many situations like this each and every day.

Here’s an excerpt:

Here is the dilemma. I was given a referral to a woman who I do not know personally. She lives in Florida, is a substitute teacher and lives in a condominium with a waterfront view. She has a good credit and a decent rate, interest only loan right now â?? it does have a prepayment penalty. She is also at 90% with her current loan to the value of the property. Unfortunately she has a bit of a cash crunch right now and would really like to lower her mortgage payments.

I go on to talk about her limited options and some of the compromises I would have to make to get this loan done for her; ones that I don’t feel comfortable making.

For consumers please read it and if you are in a similar situation please consider the ramifications of simply refinancing in to another loan when there may be better options out there for you. Just because someone will do the loan for you doesn’t mean you should take it.

I’d love to hear your feedback on it.