Comments on: Long Beach Mortgage (WaMu) Makes a Welcome Process Change

By: Robert

Robert — Sat, 08 Sep 2007 07:11:23 +0000

1. confirmation of fees: I’ve been doing it for years, but feedback from my clients is that most lenders / brokers don’t do it, so let them confirm it, I have no problem with it

2. stated income: come on, the product was not the problem, the abuse was. Stated income loans don’t give the license to inflate the income (that is fraud). I think this is going from one extreme (e.g. 100% ltv stated income loans up to $1.5 mil)to another (no liquidity for sub-prime or A- products).

By: Morgan Brown

Morgan Brown — Wed, 01 Aug 2007 18:53:38 +0000

Tony & Russ -

I agree with you both. For a professional this is an annoyance and a bit of a slap in the face. I send out closing statements ahead of time, review them line by line and reaffirm all elements of the loan prior to docs going out. Having to sit through this again by a WaMu employee is burdensome on our process and an insult.

However, my process is not the same as most of the people out there and for the professionals its just another hoop that we have to deal with thanks to the idiots.

By: Morgan Brown

Morgan Brown — Wed, 01 Aug 2007 18:51:37 +0000

Tike – I have heard rumblings and grumblings about it but here is the best I can do right now until something more substantial appears. This was a communication from Countrywide on their Alt-A stuff today:

Expanded Criteria Price Adjustment Changes

As a result of deteriorating market conditions Countrywide is changing the price guide for the Expanded Criteria Loan Programs effective August 1, 2007.

There are changes to the LTV/FICO/Documentation type grids for No Ratio, Stated Income /Stated Assets (SISA), and No Income/No Asset (NINA) documentation types as well as the Subordinate Financing adjustments. Please carefully review the new price guide available on Platinum for pricing specifics.

If you have questions, contact your Account Executive.

As soon as I have something more substantive I will post it up.

Morgan

By: Tike

Tike — Wed, 01 Aug 2007 18:45:37 +0000

What is going on with Alt-A today?

By: Russ

Russ — Wed, 01 Aug 2007 14:26:26 +0000

I have mixed feelings. On one hand I think it is good that they are confirming, but I feel kind of insulted by it as a mortgage professional. I always send out confirmation to my clients prior to closing of rates and fees. They never change so it is never an issue.

By: Tony Gallegos

Tony Gallegos — Wed, 01 Aug 2007 12:46:02 +0000

Morgan – These are positive developments, however, it seems like good mortgage professionals have already been doing this on their own. Guess it’s a case of regulating/managing to the lowest common denominator.

I agree with you 95% that stated non-prime is not needed. However, I have seen in VERY limited cases it was a best fit product for a client. The problem has been that unqualified and/or greedy LO’s/Realtors abused the product.

Great post Morgan.

By: University Update - Yahoo - Long Beach Mortgage (WaMu) Makes a Welcome Process Change

Wed, 01 Aug 2007 06:48:57 +0000

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