Comments on: Option One Eliminates the 2/28 Subprime ARM Loan http://blownmortgage.com/2007/07/16/option-one-eliminates-the-228-subprime-arm-loan/ #1 Free Home Loan Modification & Debt Relief Help For US Home Owners - Truths, Facts & News About the Mortgage Industry Mon, 09 Nov 2009 22:42:54 -0700 http://wordpress.org/?v=2.8.3 hourly 1 By: Bank Updates - Program Revisions from Top Lenders at Blown Mortgage http://blownmortgage.com/2007/07/16/option-one-eliminates-the-228-subprime-arm-loan/comment-page-1/#comment-570 Bank Updates - Program Revisions from Top Lenders at Blown Mortgage Fri, 20 Jul 2007 05:29:44 +0000 http://blownmortgage.com/2007/07/16/option-one-eliminates-the-228-subprime-arm-loan/#comment-570 [...] Option One cancels its 2/28 - now offers 3-year fixed as minimum fixed-term loan. [...] [...] Option One cancels its 2/28 – now offers 3-year fixed as minimum fixed-term loan. [...]

]]> By: Morgan Brown http://blownmortgage.com/2007/07/16/option-one-eliminates-the-228-subprime-arm-loan/comment-page-1/#comment-549 Morgan Brown Thu, 19 Jul 2007 00:34:55 +0000 http://blownmortgage.com/2007/07/16/option-one-eliminates-the-228-subprime-arm-loan/#comment-549 Hey Dennis - No worries. I am definitely not perfect and don't claim to be. I know that there are people out there who are unhappy with the loan that they received from my company and I hate it. I am trying to help people through this blog with good information. Heck, they might use this information when dealing with my company - I hope they do! Thanks for being one of the good guys Dennis and thanks for reading Blown Mortgage! Hey Dennis -

No worries. I am definitely not perfect and don’t claim to be. I know that there are people out there who are unhappy with the loan that they received from my company and I hate it.

I am trying to help people through this blog with good information. Heck, they might use this information when dealing with my company – I hope they do!

Thanks for being one of the good guys Dennis and thanks for reading Blown Mortgage!

]]> By: Dennis http://blownmortgage.com/2007/07/16/option-one-eliminates-the-228-subprime-arm-loan/comment-page-1/#comment-547 Dennis Wed, 18 Jul 2007 23:45:54 +0000 http://blownmortgage.com/2007/07/16/option-one-eliminates-the-228-subprime-arm-loan/#comment-547 In light of further inspection of this blog I have apparently misdirected my comments to you, personally, in error and for that i deeply apologize, to you, personally! no hard feelings? :) cut me a little slack. I really am one of the good guys! K? please? Actually, I'm much happier now to find out you too are a "good guy" or "good gal". ON the guy or the gal, Morgan confuses me, my wife has an uncle and a brother named Morgan as well as a niece. I feel happier now that i know you are on my side cause I have sure felt outnumbered for the past few years. Friends? huh? please? You obviously have my email address, come to my neck of the woods and the barbeque is on me! We can do a midnight run and "egg" some subprime offices! In light of further inspection of this blog I have apparently misdirected my comments to you, personally, in error and for that i deeply apologize, to you, personally! no hard feelings? :) cut me a little slack. I really am one of the good guys! K? please? Actually, I’m much happier now to find out you too are a “good guy” or “good gal”. ON the guy or the gal, Morgan confuses me, my wife has an uncle and a brother named Morgan as well as a niece. I feel happier now that i know you are on my side cause I have sure felt outnumbered for the past few years. Friends? huh? please? You obviously have my email address, come to my neck of the woods and the barbeque is on me! We can do a midnight run and “egg” some subprime offices!

]]> By: Morgan Brown http://blownmortgage.com/2007/07/16/option-one-eliminates-the-228-subprime-arm-loan/comment-page-1/#comment-529 Morgan Brown Wed, 18 Jul 2007 04:49:24 +0000 http://blownmortgage.com/2007/07/16/option-one-eliminates-the-228-subprime-arm-loan/#comment-529 Dennis - Wake up and smell the roses? I'm the one writing blown mortgage. I'm the one that is out there telling people to stay away from toxic mortgages; and chastising mortgage companies for sloppy standards and predatory lending. I'm out here railing against the crap in the mortgage industry. I'm not a subprime AE. I own a mortgage company, I'm from the marketing, operations and compliance side of things, not the sales side - I think the crap that was pulled is disgusting to the point where I'm embarrassed to be in the industry. I'm the one writing posts about extra legislation being a joke with out enforcement and about the laughable budgets and staffs that state and federal regulators are expected to work with. I'm the one writing calling for better enforcement, clearer disclosures, national licensing and the removal of incentives and kick-backs that promote unethical behavior. If you think I'm smelling the roses you've completely missed the point of this blog's entire existence. And bumpy - I don't think bumpy even comes close to describing what we're in for. Dennis – Wake up and smell the roses? I’m the one writing blown mortgage. I’m the one that is out there telling people to stay away from toxic mortgages; and chastising mortgage companies for sloppy standards and predatory lending. I’m out here railing against the crap in the mortgage industry.

I’m not a subprime AE. I own a mortgage company, I’m from the marketing, operations and compliance side of things, not the sales side – I think the crap that was pulled is disgusting to the point where I’m embarrassed to be in the industry.

I’m the one writing posts about extra legislation being a joke with out enforcement and about the laughable budgets and staffs that state and federal regulators are expected to work with. I’m the one writing calling for better enforcement, clearer disclosures, national licensing and the removal of incentives and kick-backs that promote unethical behavior.

If you think I’m smelling the roses you’ve completely missed the point of this blog’s entire existence.

And bumpy – I don’t think bumpy even comes close to describing what we’re in for.

]]> By: Dennis http://blownmortgage.com/2007/07/16/option-one-eliminates-the-228-subprime-arm-loan/comment-page-1/#comment-527 Dennis Wed, 18 Jul 2007 00:23:41 +0000 http://blownmortgage.com/2007/07/16/option-one-eliminates-the-228-subprime-arm-loan/#comment-527 Morgan wake up and smell the roses. I live in a small town in the midwest where between 25% to 30% of the home loans made in the past three years were subprime. The "quality brokers" selling these toxic arms in my neck of the woods lied their way to closing as their primary marketing tool. As the "local FHA guru" i have the distiction of probably being the ONLY Mtg company within 500 miles not to have done a subprime loan this century and STILL be in business today. I have had the opportunity to interview hundreds of borrowers trying to get out of these loans and seen first hand how other local companies practice their craft of fraud and deception. I have spoken with dozens of fast talking subprime AE's that in the course of a 10 minute phone call would happily go into detail and explain to me how to "non disclose" their programs and other juicy tidbits of fraud. Guess why? Since 2003 wall street has had an insatiable urge for these products. Your Option One's, New Century's etc now were working to generate volumn to meet a quota. Quotas .... not real strong criteria if you are hoping for a performing product. Apparently not even if want 50% performing product. Subprime has a basic failed premise and that is You cannot mitigate credit risk by giving the borrower a 14% interest rate on a 100% LTV. More appropriate to risk mitigation is a higher down payment and i don't mean a fraudulent appraisal and a phony second. There is a certain degree of fault to borrowers that believed and did not read. There is no justification for the brokers or companies that went out of their way to ruin the lives of tens of thousands of families because they had neither the training, ability or means to run a business in a competitive envirornment honestly. "everybody else does it" is not nor will it ever be true. I am living proof of that. The Morse's and the Mozillo's of the industry sold wall street a flawed business model and from there things got increasingly worse. Once again, believe it. The party is over. By the time Ohio is done, it won't be coming back soon. Why don't you check out reverse mortgages? I hear that is the next "opportunity" for former subprime AEs. I know my comments are harsh. I intend them to be. I have a front row seat for dozens and dozens of local daily forclosures and the families that are the subprime's throwaway customers. A borrower's only defense is a basic one and that is to obtain and understand what is on their credit report and how that will affect their financing options. They should know that "conventional loans" are not the same as "conventional conforming loans" and with credit scores in the low sixes to high fives they better be talking to someone that can spell FHA, VA or USDA. If they are talking to a broker that is telling them what they want to hear rather than what the need to know to get a better loan then the email for that remedy is www.ago.yourstate.com. If you are in the subprime bus, Morgan you better buckle up cause it is gonna be a bumpy ride. Many of us are hoping for quintupling the number of investigators and rewarding the perps with generous jail time and forfeiture of assets. RESPA has some pretty sharp teeth in the form of Reg Z. The laws are on the books. Maybe two trillion dollars in junk loans will be enough see some people get bitten......... BFATZ. you are an individual of few words but you summed up subprime exactly correct. Morgan wake up and smell the roses. I live in a small town in the midwest where between 25% to 30% of the home loans made in the past three years were subprime. The “quality brokers” selling these toxic arms in my neck of the woods lied their way to closing as their primary marketing tool. As the “local FHA guru” i have the distiction of probably being the ONLY Mtg company within 500 miles not to have done a subprime loan this century and STILL be in business today. I have had the opportunity to interview hundreds of borrowers trying to get out of these loans and seen first hand how other local companies practice their craft of fraud and deception. I have spoken with dozens of fast talking subprime AE’s that in the course of a 10 minute phone call would happily go into detail and explain to me how to “non disclose” their programs and other juicy tidbits of fraud. Guess why? Since 2003 wall street has had an insatiable urge for these products. Your Option One’s, New Century’s etc now were working to generate volumn to meet a quota. Quotas …. not real strong criteria if you are hoping for a performing product. Apparently not even if want 50% performing product. Subprime has a basic failed premise and that is You cannot mitigate credit risk by giving the borrower a 14% interest rate on a 100% LTV. More appropriate to risk mitigation is a higher down payment and i don’t mean a fraudulent appraisal and a phony second. There is a certain degree of fault to borrowers that believed and did not read. There is no justification for the brokers or companies that went out of their way to ruin the lives of tens of thousands of families because they had neither the training, ability or means to run a business in a competitive envirornment honestly. “everybody else does it” is not nor will it ever be true. I am living proof of that. The Morse’s and the Mozillo’s of the industry sold wall street a flawed business model and from there things got increasingly worse. Once again, believe it. The party is over. By the time Ohio is done, it won’t be coming back soon. Why don’t you check out reverse mortgages? I hear that is the next “opportunity” for former subprime AEs. I know my comments are harsh. I intend them to be. I have a front row seat for dozens and dozens of local daily forclosures and the families that are the subprime’s throwaway customers. A borrower’s only defense is a basic one and that is to obtain and understand what is on their credit report and how that will affect their financing options. They should know that “conventional loans” are not the same as “conventional conforming loans” and with credit scores in the low sixes to high fives they better be talking to someone that can spell FHA, VA or USDA. If they are talking to a broker that is telling them what they want to hear rather than what the need to know to get a better loan then the email for that remedy is http://www.ago.yourstate.com. If you are in the subprime bus, Morgan you better buckle up cause it is gonna be a bumpy ride. Many of us are hoping for quintupling the number of investigators and rewarding the perps with generous jail time and forfeiture of assets. RESPA has some pretty sharp teeth in the form of Reg Z. The laws are on the books. Maybe two trillion dollars in junk loans will be enough see some people get bitten……… BFATZ. you are an individual of few words but you summed up subprime exactly correct.

]]> By: cowboy #1 http://blownmortgage.com/2007/07/16/option-one-eliminates-the-228-subprime-arm-loan/comment-page-1/#comment-524 cowboy #1 Tue, 17 Jul 2007 16:32:25 +0000 http://blownmortgage.com/2007/07/16/option-one-eliminates-the-228-subprime-arm-loan/#comment-524 It sounds like most of you only have been in the business for a short time. These products well valued at the time to get renters in a home was great, but we knwo what was going to happen, just like the early 90s, no different then, it is a bigger impact today because we have more homeowners and a negative savings. Start thinking about the consumer not your pocket book, if you run a honest business then the money will come and if your consumer needs a 2/28 or any short term loan for that matter, maybe they need to think can they really afford a home. There are new producsts on the market that will benefit our consumer now and in the future start thinking about that. It sounds like most of you only have been in the business for a short time. These products well valued at the time to get renters in a home was great, but we knwo what was going to happen, just like the early 90s, no different then, it is a bigger impact today because we have more homeowners and a negative savings.

Start thinking about the consumer not your pocket book, if you run a honest business then the money will come and if your consumer needs a 2/28 or any short term loan for that matter, maybe they need to think can they really afford a home.

There are new producsts on the market that will benefit our consumer now and in the future start thinking about that.

]]> By: Former oomc uw http://blownmortgage.com/2007/07/16/option-one-eliminates-the-228-subprime-arm-loan/comment-page-1/#comment-520 Former oomc uw Tue, 17 Jul 2007 14:31:08 +0000 http://blownmortgage.com/2007/07/16/option-one-eliminates-the-228-subprime-arm-loan/#comment-520 There is nothing amazing about Option One eliminating the 2-year fixed subprime ARM loan from its lending portfolio. I agree with John Mark that option one were forced to get rid of 2/28. They don't care about borrowers,brokers or employees. Sub Prime lenders including Option One are driven by profit. All about helping borrower is nothing but PR. There is nothing amazing about Option One eliminating the 2-year fixed subprime ARM loan from its lending portfolio. I agree with John Mark that option one were forced to get rid of 2/28. They don’t care about borrowers,brokers or employees. Sub Prime lenders including Option One are driven by profit. All about helping borrower is nothing but PR.

]]> By: bfatz http://blownmortgage.com/2007/07/16/option-one-eliminates-the-228-subprime-arm-loan/comment-page-1/#comment-519 bfatz Tue, 17 Jul 2007 13:28:19 +0000 http://blownmortgage.com/2007/07/16/option-one-eliminates-the-228-subprime-arm-loan/#comment-519 Personally I think it all sucks..but that is my opinion. Personally I think it all sucks..but that is my opinion.

]]> By: Ron Withers http://blownmortgage.com/2007/07/16/option-one-eliminates-the-228-subprime-arm-loan/comment-page-1/#comment-518 Ron Withers Tue, 17 Jul 2007 11:42:02 +0000 http://blownmortgage.com/2007/07/16/option-one-eliminates-the-228-subprime-arm-loan/#comment-518 First Franklin Financial Corp has also announced that they have removed the 2/28 from their product list. First Franklin Financial Corp has also announced that they have removed the 2/28 from their product list.

]]> By: John Mark http://blownmortgage.com/2007/07/16/option-one-eliminates-the-228-subprime-arm-loan/comment-page-1/#comment-509 John Mark Tue, 17 Jul 2007 04:37:43 +0000 http://blownmortgage.com/2007/07/16/option-one-eliminates-the-228-subprime-arm-loan/#comment-509 Option One did nothing here. They were forced to get rid or 2/28 arms because what was selling for 101 on Thursday is now selling for 85. Moe is right about Fieldstone. They are offering and have been for 2-3 months a 30 or 40 year fixed for the same rate as everyone elses 2/28. In some cases lower then everyones 2/28. Fieldstone got rid of their 2/28 and 3/27 arms last Friday, not because of anything other then the loans are not sellable right now. However they are giving everyone who has a 2/28 loan approved or the rate locked on a fixed rate loan the same 2 year prepay as the 2/28. No, new submissions will not get the 2 year prepay deal but they will not at Option One either. At least Fieldstone didn't put out a press release to try and make themselfs look like hereos like Option One. This is a business and everyone is in it to make money just like everyone else in any other business. Option One did nothing here. They were forced to get rid or 2/28 arms because what was selling for 101 on Thursday is now selling for 85. Moe is right about Fieldstone. They are offering and have been for 2-3 months a 30 or 40 year fixed for the same rate as everyone elses 2/28. In some cases lower then everyones 2/28. Fieldstone got rid of their 2/28 and 3/27 arms last Friday, not because of anything other then the loans are not sellable right now. However they are giving everyone who has a 2/28 loan approved or the rate locked on a fixed rate loan the same 2 year prepay as the 2/28. No, new submissions will not get the 2 year prepay deal but they will not at Option One either. At least Fieldstone didn’t put out a press release to try and make themselfs look like hereos like Option One. This is a business and everyone is in it to make money just like everyone else in any other business.

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