Comments on: The Death of Stated Income Loans… http://blownmortgage.com/2007/08/16/the-death-of-stated-income-loans/ #1 Free Home Loan Modification & Debt Relief Help For US Home Owners - Truths, Facts & News About the Mortgage Industry Sat, 07 Nov 2009 02:53:18 -0700 http://wordpress.org/?v=2.8.3 hourly 1 By: annonymous in vegas http://blownmortgage.com/2007/08/16/the-death-of-stated-income-loans/comment-page-2/#comment-4025 annonymous in vegas Thu, 13 Sep 2007 10:14:40 +0000 http://blownmortgage.com/2007/08/16/the-death-of-stated-income-loans/#comment-4025 all i can say is it is mainly the borrowers faults!!!!! im sorry but loan officers have to make a living! what option does a loan officer have when they, as a loan officer tell the borrower what their income can handle as far as purchase price ..and the borrower states they want a bigger house..and tell the loan officer they were told by a competitor that they can get them that bigger house? the only choice left is to do the loan as the borrower wishes..which means stating their income and getting them a bigger home so they can live like a king and drive a pinto to their 9-5 hourly job!!! and then again...lots of loan officers were crooks on top of that taking advantage of people who really wanted that expensive over the top homec. charging them high costs and taking extreme rebates!!! in my town...i dealt with many unexperienced loan officers. With no professional workl ethics...they reminded me of used car sales men really...tackiest people I have ever worked with..really. These loan officers and realtors would curse, dress like they were at their home..walk around with their noses in air thinking they were hot shots, worrying more about the rebates they were getting then what would benefit their borrowers, lying to some borrowers about how the programs worked since they would not take the time to sit down and learn the products inside out before trying to sell it to the public. I would say over 85% of loan officers are in it for the money...not because they care about their borrowers or because it was their passion..just out of greed. I think we should have our rules regulated!!!! like max fees limited to 3% to include rebates,processing fees and every other fee connected with the deal. Applying some of the rebate to cover atleast one minor borrower cost as a credit rerpot fee or appraisal fee. they should require come college education. Brokers should be required to pay them a minimum salary and comissions..that way they only hire people who are worth it and know what they are doing to make the business grow and keep a good reputation. that would keep all the unknowledgeable trash out. State should not license any one who signs up..until they pass a full technical hard exam which should require questions like the following.. what is a margin?? how does a margin affect a rate adjustment?? how does a libor differ from a mta?? what would the new rate be on a libor rate adjustment if the current rate is 6.75, the current index is 2.9 and the note margin is 3.5 and note has an adjustment cap for that year of 1%? I bet over 85% of loan officers would not even know the answer to a question like that!!!! why? cause loan officers could care less..all they want is to do business with banks that give them the best rebates and lowest costs to their broker for doing the loan so they can have more room to charge more fees to borrwers. In other words..if the lender waives a 400 fee...the loan officer would turn around and try to charge the borrower a extra $400 and keep it for himself. those damn realtors also...fighting with appraisers threatening to send their business to other appraisers who would inflate values! Or representing both buyer and sellers on same transaction and still charging the seller 6%!!!!! I would have done both for 3%!!!! I know all this stuff because I worked as an AE for a lender!!!! I saw everything that went on!! and I know everything to do with loans and financing..why? because it was my passion..i learned it all inside out!!! I earned a decent income and was not greeedy either. i AM not losing my home like other realtors or loan officers that are. bottom line is I think majority of fault is to blame on borrowers for wanting to live like kings realtors who closed bad crooked deals and gave their business to bad appraisers on purpose to get hte deals closed. realtors who just care about getting at least 20,000 a month in sales commisions loan officers who ripped of customers and appraisers who inflated properties and investors who lied and got owner occupied to get loans they wanted to save a couple hundred on their monthly payment and then flipped properties!! it is everybodys fault!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! all i can say is it is mainly the borrowers faults!!!!!

im sorry but loan officers have to make a living!

what option does a loan officer have when they, as a loan officer tell the borrower what their income can handle as far as purchase price ..and the borrower states they want a bigger house..and tell the loan officer they were told by a competitor that they can get them that bigger house?

the only choice left is to do the loan as the borrower wishes..which means stating their income and getting them a bigger home so they can live like a king and drive a pinto to their 9-5 hourly job!!!

and then again…lots of loan officers were crooks on top of that taking advantage of people who really wanted that expensive over the top homec. charging them high costs and taking extreme rebates!!!

in my town…i dealt with many unexperienced loan officers. With no professional workl ethics…they reminded me of used car sales men really…tackiest people I have ever worked with..really.

These loan officers and realtors would curse, dress like they were at their home..walk around with their noses in air thinking they were hot shots, worrying more about the rebates they were getting then what would benefit their borrowers, lying to some borrowers about how the programs worked since they would not take the time to sit down and learn the products inside out before trying to sell it to the public.

I would say over 85% of loan officers are in it for the money…not because they care about their borrowers or because it was their passion..just out of greed.

I think we should have our rules regulated!!!!

like max fees limited to 3% to include rebates,processing fees and every other fee connected with the deal. Applying some of the rebate to cover atleast one minor borrower cost as a credit rerpot fee or appraisal fee.
they should require come college education.

Brokers should be required to pay them a minimum salary and comissions..that way they only hire people who are worth it and know what they are doing to make the business grow and keep a good reputation. that would keep all the unknowledgeable trash out.

State should not license any one who signs up..until they pass a full technical hard exam
which should require questions like the following..

what is a margin??
how does a margin affect a rate adjustment??
how does a libor differ from a mta??

what would the new rate be on a libor rate adjustment if the current rate is 6.75, the current index is 2.9 and the note margin is 3.5 and note has an adjustment cap for that year of 1%? I bet over 85% of loan officers would not even know the answer to a question like that!!!!

why? cause loan officers could care less..all they want is to do business with banks that give them the best rebates and lowest costs to their broker for doing the loan so they can have more room to charge more fees to borrwers. In other words..if the lender waives a 400 fee…the loan officer would turn around and try to charge the borrower a extra $400 and keep it for himself.

those damn realtors also…fighting with appraisers threatening to send their business to other appraisers who would inflate values!
Or representing both buyer and sellers on same transaction and still charging the seller 6%!!!!! I would have done both for 3%!!!!

I know all this stuff because I worked as an AE for a lender!!!! I saw everything that went on!!

and I know everything to do with loans and financing..why? because it was my passion..i learned it all inside out!!!
I earned a decent income and was not greeedy either.
i AM not losing my home like other realtors or loan officers that are.

bottom line is

I think majority of fault is to blame on borrowers for wanting to live like kings
realtors who closed bad crooked deals and gave their business to bad appraisers on purpose to get hte deals closed.
realtors who just care about getting at least 20,000 a month in sales commisions
loan officers who ripped of customers
and appraisers who inflated properties

and investors who lied and got owner occupied to get loans they wanted to save a couple hundred on their monthly payment and then flipped properties!!

it is everybodys fault!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

]]> By: Matt http://blownmortgage.com/2007/08/16/the-death-of-stated-income-loans/comment-page-2/#comment-3270 Matt Tue, 28 Aug 2007 22:54:37 +0000 http://blownmortgage.com/2007/08/16/the-death-of-stated-income-loans/#comment-3270 Nobody remembers the borrower shopping around with dozens of lenders to get what they want. Keeping up with the jones is all borrowers cared about so they say yes to the house they cant afford. The best quote of my career was a woman in an arm that didnt want to fix it. She said she would just wait for the home to go up in value. I asked why she thought it would go up with all the fundamentals that drive a market, be it stock, bond, housing where not looking good so it makes sense to do it now before the home prices fall. Her response. "This is VEGAS". If that doesn't sum up the stupidity on home appreciation what does? That answer was given to me 1 1/2 years ago. We know how vegas has been since then. Nobody remembers the borrower shopping around with dozens of lenders to get what they want. Keeping up with the jones is all borrowers cared about so they say yes to the house they cant afford. The best quote of my career was a woman in an arm that didnt want to fix it. She said she would just wait for the home to go up in value. I asked why she thought it would go up with all the fundamentals that drive a market, be it stock, bond, housing where not looking good so it makes sense to do it now before the home prices fall. Her response. “This is VEGAS”. If that doesn’t sum up the stupidity on home appreciation what does? That answer was given to me 1 1/2 years ago. We know how vegas has been since then.

]]> By: Greg http://blownmortgage.com/2007/08/16/the-death-of-stated-income-loans/comment-page-2/#comment-3208 Greg Tue, 28 Aug 2007 00:48:47 +0000 http://blownmortgage.com/2007/08/16/the-death-of-stated-income-loans/#comment-3208 I first of all, would like to thank Sandy, the underwriter, who hit the nail right on the head. You have these really greedy, intolerable, tyrants acting as branch managers forcing underwriters to do these Stated Income loans because they need to make their alimony payments! They are the first ones to say it is the "unexperienced loan officers" that put the market where it is, but in reality it is the "experienced" greedy loan officer that put the market where it is. Using their friends or relatives businesses to provide false employoment verifications or lending the borrower the 2 mos reserves required to close their stated loans. Those loan officers or managers are probably working out of cafe's just about now.... I first of all, would like to thank Sandy, the underwriter, who hit the nail right on the head. You have these really greedy, intolerable, tyrants acting as branch managers forcing underwriters to do these Stated Income loans because they need to make their alimony payments! They are the first ones to say it is the “unexperienced loan officers” that put the market where it is, but in reality it is the “experienced” greedy loan officer that put the market where it is. Using their friends or relatives businesses to provide false employoment verifications or lending the borrower the 2 mos reserves required to close their stated loans. Those loan officers or managers are probably working out of cafe’s just about now….

]]> By: pat http://blownmortgage.com/2007/08/16/the-death-of-stated-income-loans/comment-page-2/#comment-2738 pat Tue, 21 Aug 2007 13:41:34 +0000 http://blownmortgage.com/2007/08/16/the-death-of-stated-income-loans/#comment-2738 I got into trouble with my mortgage and "gave back" the house 7 years ago. At that time my kids were young. I used it as an opportunity to teach them about personal responsibility and financial intelligence. I learned from my mistake and I don't blame the bank that gave me the loan, the realtor who sold me the house, or the (now ex) partner on whose income I relied for the loan. Now I have no credit cards, no loans and no mortgage. I do have about 45000 in cash and I'll be ready, when the time comes in a few years, to pay cash for the house I can afford. My daughter was offered an ARM about 6 months ago. Based on what she had learned from my mistakes, she turned it down. She had the common sense to realize that although her credit score is excellent and she has adequate income, the possibility of major corrections in the housing market could leave her unable to repay. Instead she has invested the money that was intended for her downpayment and has decided to ride out the storm, rent for a few more years and buy later, when she can afford the inherent risks. Tamara, we as parents, have the responsibility to teach our children these lessons. I wish I had the knowledge before I took the mortgage, but I didn't. That's my own fault. Nobody elses. As a parent I used my own stupidity to teach my child that very important lesson....you are responsible for your own decisions. Not the bank or mortgage lender, not the realtor, you. Your daughters story is unfortunate, but it is also a great opportunity for her. Losing her house will not kill her. She will live through it. What she does with the lessons she has learned could allow her to make better financial decisions in the future, but not if you teach her that it wasn't her fault. I got into trouble with my mortgage and “gave back” the house 7 years ago. At that time my kids were young. I used it as an opportunity to teach them about personal responsibility and financial intelligence. I learned from my mistake and I don’t blame the bank that gave me the loan, the realtor who sold me the house, or the (now ex) partner on whose income I relied for the loan.
Now I have no credit cards, no loans and no mortgage. I do have about 45000 in cash and I’ll be ready, when the time comes in a few years, to pay cash for the house I can afford.
My daughter was offered an ARM about 6 months ago. Based on what she had learned from my mistakes, she turned it down. She had the common sense to realize that although her credit score is excellent and she has adequate income, the possibility of major corrections in the housing market could leave her unable to repay. Instead she has invested the money that was intended for her downpayment and has decided to ride out the storm, rent for a few more years and buy later, when she can afford the inherent risks.
Tamara, we as parents, have the responsibility to teach our children these lessons. I wish I had the knowledge before I took the mortgage, but I didn’t. That’s my own fault. Nobody elses. As a parent I used my own stupidity to teach my child that very important lesson….you are responsible for your own decisions. Not the bank or mortgage lender, not the realtor, you.
Your daughters story is unfortunate, but it is also a great opportunity for her. Losing her house will not kill her. She will live through it. What she does with the lessons she has learned could allow her to make better financial decisions in the future, but not if you teach her that it wasn’t her fault.

]]> By: 5 Signs That The Worst Is Yet To Come With The Housing Bubble | The Arizona Housing Bubble | Watching The Arizona Real Estate, Credit, Lending, And Mortgage Crisis From A Consumer's Point Of View http://blownmortgage.com/2007/08/16/the-death-of-stated-income-loans/comment-page-2/#comment-2724 5 Signs That The Worst Is Yet To Come With The Housing Bubble | The Arizona Housing Bubble | Watching The Arizona Real Estate, Credit, Lending, And Mortgage Crisis From A Consumer's Point Of View Mon, 20 Aug 2007 19:28:09 +0000 http://blownmortgage.com/2007/08/16/the-death-of-stated-income-loans/#comment-2724 [...] the above credit cost with severely tightened underwriting guidelines to drastically reduce the number of home buyers and home .... Products that were commonly leveraged over the last 5 years by homeowners as ?affordability? [...] [...] the above credit cost with severely tightened underwriting guidelines to drastically reduce the number of home buyers and home …. Products that were commonly leveraged over the last 5 years by homeowners as ?affordability? [...]

]]> By: Chris http://blownmortgage.com/2007/08/16/the-death-of-stated-income-loans/comment-page-2/#comment-2722 Chris Mon, 20 Aug 2007 19:11:55 +0000 http://blownmortgage.com/2007/08/16/the-death-of-stated-income-loans/#comment-2722 Option arms are not the problem. Stated income loans are not the problem. It's simply a matter of whether a particular product is appropriate for a particular buyer. An investor with many properties is likely to need to go stated at some point due to paper losses. These losses are completely legal and in some cases a result of the lenders underwriting guidlines. Option arms are not the problem. Stated income loans are not the problem. It’s simply a matter of whether a particular product is appropriate for a particular buyer. An investor with many properties is likely to need to go stated at some point due to paper losses. These losses are completely legal and in some cases a result of the lenders underwriting guidlines.

]]> By: Housing Wire » Weekend Mortgage Market Roundup, and My Own Thoughts on Where This is Headed http://blownmortgage.com/2007/08/16/the-death-of-stated-income-loans/comment-page-2/#comment-2706 Housing Wire » Weekend Mortgage Market Roundup, and My Own Thoughts on Where This is Headed Mon, 20 Aug 2007 02:37:52 +0000 http://blownmortgage.com/2007/08/16/the-death-of-stated-income-loans/#comment-2706 [...] own mortgage company. Earlier in the week, he noted that IndyMac’s new guidelines essentially remove stated income from the lending picture [...] [...] own mortgage company. Earlier in the week, he noted that IndyMac’s new guidelines essentially remove stated income from the lending picture [...]

]]> By: Aaron http://blownmortgage.com/2007/08/16/the-death-of-stated-income-loans/comment-page-2/#comment-2699 Aaron Sun, 19 Aug 2007 14:10:46 +0000 http://blownmortgage.com/2007/08/16/the-death-of-stated-income-loans/#comment-2699 Option Arms are not the devil loans that people think they are. The real issue is that too many loan officers do not understand them, so they would either not be able to PROPERLY screen the borrowers or did not care to screen them. They sold these loans to borrowers for the "lowest payment" and nothing more. Borrowers did not know any better and would be enticed with the concept. If the loan officer would have analyzed the borrower's situation and found that this program could be helpful for them, the best concept is allowing a financial planner to create a game plan. There are some simple concepts that you can utilize this product for your advantage. You can trade bad debt for good debt by paying some high interest rate credit cards off with the difference in the lower payment and the normal mortgage payment.The mortgage interest payment can be written off on your taxes (credit cards can't). Another simple concept is using that same difference to invest the money. Any good financial planner could help make more money on the investment return than the interest rate that you are paying on the option arm program. The unfortunate part is that loan officers did not offer this type of game plan for the borrowers in hope that the borrower might figure it out. The option arms have been around a while and were never abused like they have in recent years (like the stated income loans). Option Arms are not the devil loans that people think they are. The real issue is that too many loan officers do not understand them, so they would either not be able to PROPERLY screen the borrowers or did not care to screen them. They sold these loans to borrowers for the “lowest payment” and nothing more. Borrowers did not know any better and would be enticed with the concept. If the loan officer would have analyzed the borrower’s situation and found that this program could be helpful for them, the best concept is allowing a financial planner to create a game plan. There are some simple concepts that you can utilize this product for your advantage. You can trade bad debt for good debt by paying some high interest rate credit cards off with the difference in the lower payment and the normal mortgage payment.The mortgage interest payment can be written off on your taxes (credit cards can’t). Another simple concept is using that same difference to invest the money. Any good financial planner could help make more money on the investment return than the interest rate that you are paying on the option arm program. The unfortunate part is that loan officers did not offer this type of game plan for the borrowers in hope that the borrower might figure it out. The option arms have been around a while and were never abused like they have in recent years (like the stated income loans).

]]> By: jim http://blownmortgage.com/2007/08/16/the-death-of-stated-income-loans/comment-page-2/#comment-2690 jim Sun, 19 Aug 2007 01:02:05 +0000 http://blownmortgage.com/2007/08/16/the-death-of-stated-income-loans/#comment-2690 ninane. a kickback ninane.

a kickback

]]> By: jim http://blownmortgage.com/2007/08/16/the-death-of-stated-income-loans/comment-page-2/#comment-2689 jim Sun, 19 Aug 2007 00:44:33 +0000 http://blownmortgage.com/2007/08/16/the-death-of-stated-income-loans/#comment-2689 p.s. I record documents for title companies and as of Friday last, I still see 80/20 loans and adjustable loans. no one is any smarter as of last friday.. Lot of short sales also p.s. I record documents for title companies and as of Friday last, I still see 80/20 loans and adjustable loans. no one is any smarter as of last friday.. Lot of short sales also

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