Comments on: Option One switches to all Fannie eligible products

By: Jo

Jo — Thu, 06 Sep 2007 00:58:22 +0000

John you are the man you think like me. IF your not in the buisness you have no say in whats going on the mortgage industry. The news cant talk about the war anymore cause weve all had it with that. Now there changing focus to the mortgage industry. Do anyof these rreports even know the terms of there own loans??????? HAHAHAHAHAH I bit not. There as kookoo as anyone that doesnt look at the papers the sign. So lets focus on all the NEWS companies that have made a killing of air TIME WITH THE REAL ESTATE MARKET BLOW UP OR HERE IT GOES THEEEEEEEEEEEEE Subprime market(booogie mans gonna get you).Home owners make sure you dont look in your closet at night.
booooooooooooooooooooooooooooooooooo

By: Mike

Mike — Tue, 04 Sep 2007 18:35:25 +0000

at the end of the day the borrower needs to face realty there the ones signing docs? Did we all forget english?????
Come on peeps are we back to kindergarten? dam i probabaly have speeling issues maybe ill go back to school

By: DC

DC — Sat, 01 Sep 2007 04:19:05 +0000

Hold on a second…. is someone here claiming that Blog-o-sphere has caused the problems of the mortgage market?!?!? that NEITHER the reckless lending, NOR ridiculously manipulated Fed rates, NOR Sir Alan Greenspan encouraging people to refi their houses, get into ARMs and “cash out” were the primary causes. Whooooooooooooooooweeeee! That’s rich. Thanks for the laugh. Enjoy your LDW! Carry on…

By: John

John — Sat, 01 Sep 2007 03:00:01 +0000

Stop trying to blame one another.

We are ALL in this together even if you decide to get out of the mortgage business. Why? Because the mortgage industry leaves an impact on the home values, on the ecomony, on our wallets, on our ability to borrow etc. And the reverse is true. Those things all have an impact on our mortgage business.

No single entity is to blame.

This is an ugly time right now for all of us. A lot of us are either on unemployment, have run out of unemployment, don’t get unemployment, are making a lot less than before and we are understandably upset. I know I’ve been in a few of those categories. I can only hope that I don’t get into the unemployed category right now.

The best thing for all of us to do is to figure out how to get out of this mess. We can start by making good loans. Doing the very best we can at whatever level we work at. RE agent, broker, loan officer, processor, AE, Underwriter, Doc drawer, funder etc.

John

By: Voice of Reason

Voice of Reason — Fri, 31 Aug 2007 19:28:46 +0000

Lisa- Thank you for the compliment but it’s still not the broker’s fault. Why did you get into this business? I did initially because I make an excellent living with no college degree and minimal training. I stay in the business because I get immense personal satisfaction out of helping the many people I have assisted to buy homes that were afraid that they were going to get ripped off. I work with a number of ethical people and I’ve worked with people looking to bang a client for everything they could get. The 1st client I ever worked with still refers me business.

Do you work for free? If your employer came to you and said that they wanted you to do the same job but they weren’t going to pay you for it, would you do it? Why did you accept the job that you have? If the money were half would you still do it?
I have turned business away because I determined that there was no profit for me and the company however I have worked for no commission and I have taken losses on loans. I’ve made $200 on a loan and I’ve made $34,000. I’ve mostly advised taking fixed rate loans over the last 12 months but I have put clients in 2/28’s and option ARM’s. I have counseled them all on the benefits AND the risks. Whether they chose to accept the education I provided is up to them. I am not their parent.
You have to be 18 to buy a home so you are an adult and if you sign the note and mortgage, then YOU are responsible. The broker’s are NOT the only people that made money yet we seem to be the only ones faulted because we did. I have 12 state licenses and I am as regulated as a lender if not possibly more depending on the state. This idea that we all have skipped off to the bank to cash our YSP checks in our Ferraris is silly. The responsibility rests with the banks for creating the programs and consumers for accepting them. If you buy a car and it explodes on the interstate while you drive it, do you blame the guy that sold it to you?

By: Voice of Reason

Voice of Reason — Fri, 31 Aug 2007 19:26:28 +0000

I have turned business away because I determined that there was no profit for me and the company however I have worked for no commission and I have taken losses on loans. I’ve made $200 on a loan and I’ve made $34,000. I’ve mostly advised taking fixed rate loans over the last 12 months but I have put clients in 2/28’s and option ARM’s. I have counseled them all on the benefits AND the risks. Whether they chose to accept the education I provided is up to them. I am not their parent.

You have to be 18 to buy a home so you are an adult and if you sign the note and mortgage, then YOU are responsible. The broker’s are NOT the only people that made money yet we seem to be the only ones faulted because we did. I have 12 state licenses and I am as regulated as a lender if not possibly more depending on the state. This idea that we all have skipped off to the bank to cash our YSP checks in our Ferraris is silly. The responsibility rests with the banks for creating the programs and consumers for accepting them. If you buy a car and it explodes on the interstate while you drive it, do you blame the guy that sold it to you?

By: Lisa

Lisa — Fri, 31 Aug 2007 19:02:17 +0000

Voice of Reason, you sound like an educated broker, you are a minority in this industy right now, all we need to do is have a good cleansing of the industry (brokers and lenders), there are so many people in this industry right now that have absolutely no reason to be here. We need to have a better licensing requirement. The brokers/lenders/AE’s that use this industry as a career and not as a job, those are what we need to keep. Yes lenders did get out of control, but so did brokers, lenders got greedy on the products but brokers got even greedier with ysp. Have you ever said I am not going to do that deal because I am only going to make one point on the deal? Why wouldnt you do it, $2k is not worth your time. Bottom line is everyone needs to change the way mortgages are done, lenders who didnt change the way they do business are gone there will be a few more to fail, next wave of shut downs will be the broker shops.

By: From Broker to AE to Broker

From Broker to AE to Broker — Fri, 31 Aug 2007 18:25:48 +0000

Everyone wants to play the blame game, however, no one wants to turn the mirror on themselves. In reality, everyone involved in this business has played a role. Politicians, brokers, lenders, capital markets and borrowers. Period. Option One did tried to keep their guidelines as conservative as possible, however when you loose market share to the 560 100% full doc lenders, the ulmighty greed rears it ugly head. It starts form the top down and makes it way through the channel. Have you ever closed a stated FIXED income deal? Come on…that product should never existed. Terrible loan for the borrower and lenders…however the broker gets paid upfront at close, correct? That is just one example of what should not have been out there. Now consider what the borrower did after the close. Mr. Borrower buys a home on a 2/28 at a 45% DTI, then 3 months later opens a Home Depot card to do improvements, buys a new car for $500+ a month and charges new furniture to place in the new home…cap that off with the “middle america” jobs either being sent overseas or if they remain here, the wages reduced. That will have resounding effects on the economy. Easy money was a cancer to all of us, but the industry will survive. The people who are currently leaving the capital markets, will be back. They made enormous amounts of money over the past 5+ years. They will pull their monies out…place it in a more conservative market…get bored with their returns…look back to see how they made all that money…adjust the portfolio to effectively ensure their risk…roll out the adjusted products…and game on. Learn from what is going on now…the sun will shine again and if you learned from the past mistakes you will ride happily into the sunset. Now, follow the money.

By: Voice of Reason

Voice of Reason — Fri, 31 Aug 2007 17:33:24 +0000

Batter up- since you work anonymously for the 2nd largest subprime lender, which changes hourly, then answer this- Who created the loan programs- the lender or the broker? Who determined the guidelines for these loans- Lender or broker? Who sent representatives to the broker’s office pushing these programs in the broker?s faces so they’d sell them to their client’s- lender or broker? Who underwrote these loans- lender or broker? Who, if they thought the borrower/appraiser/broker were doing something fraudulent, had the ability NOT to fund the loan- lender or broker? TAKE THE RESPONSIBILITY MR. CAPITOL MARKETS!! You wanted those loans and your representatives called and BEGGED us for those loans. You can’t look inward and say “Hey! We F’d up making loans to people that can’t afford them. Maybe we shouldn’t have ignored all those +24 month collection accounts and that 55% DTI based on the 40 year interest only payment. Maybe that was a REALLY GOOD indication that this moron can’t afford this loan and is going to be in trouble 2 to 3 years down the road.” Did you say that? NO! You sent reps in to buy me lunch and give me pens/basketballs/fans/coffee mugs with “100% NINJA with a 520 score” written all over them as they reminded me that they’d give me a free .5% on everything submitted in the next 14 days so when I had the borrower that doesn’t qualify I’d say “Hey wait- Batter Up has a loan program for you but you need to be aware of program stipulations.” You knew the borrower- who’s heard “Stop paying rent!” on every TV and radio station was going to say “Sign me up! I can do it!” even though they had not demonstrated an ability to pay their $300 Providian Visa. D’nile ain’t just a river in Egypt buddy. You offered basically free money and now you blame the people who gave it away for you? What did you get from the Easter Bunny this year?

By: BatterUp

BatterUp — Fri, 31 Aug 2007 16:48:09 +0000

Voice of Reason – You say that the brokers are not at fault for any of this mess and that it is the consumer and the lenders pushing these loans. Working in Capital Markets at the second largest Subprime Lender, victim of subprime fallout earlier in this year, I can say that my job was to fix the worthless or defaulted loans and repackage them to sell back in the markets. From the consumer down the food chain to the equity and investment firms buying these MBS, everyone has a place in the “blame game.” THe Lenders would not “push” to sell certain programs, if the Investors weren’t buying them. Investors were willing to buy anything and the feeding frenzy was on. In the movie “It’s a Wonderful Life” the banks were pushed out of business as consumers were pulling out all of their money out of fear in the market causing major “bank runs.” And now the investors are doing the same thing to many of these lenders forcing htem to buy back the loans they were so eager to buy in the first place. From the Investor, to the Lender, to the Underwriter, to the AE, to the appraiser, to the Loan Officer, everyone is at fault as their eyes all turned green.