Comments on: An Open Euology to the Option ARM http://blownmortgage.com/2007/11/21/an-open-euology-to-the-option-arm/ #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: Celebrity Sunglasses http://blownmortgage.com/2007/11/21/an-open-euology-to-the-option-arm/comment-page-1/#comment-71146 Celebrity Sunglasses Tue, 07 Jul 2009 09:49:34 +0000 http://blownmortgage.com/2007/11/21/an-open-euology-to-the-option-arm/#comment-71146 its a good site, i enjoyed reading it, cheap sunglasses wasn't bad to buy they are also good but not as the expensive ones. its a good site, i enjoyed reading it, cheap sunglasses wasn't bad to buy they are also good but not as the expensive ones.

]]> By: IndyMac Makes Drastic Pricing Changes to Alt-A Jumbos and Option ARMs http://blownmortgage.com/2007/11/21/an-open-euology-to-the-option-arm/comment-page-1/#comment-7978 IndyMac Makes Drastic Pricing Changes to Alt-A Jumbos and Option ARMs Thu, 13 Dec 2007 16:39:52 +0000 http://blownmortgage.com/2007/11/21/an-open-euology-to-the-option-arm/#comment-7978 [...] option ARMs. And that’s the best pricing! So much for rebate on those bad boys. I wrote an ode to the death of the option ARM awhile back and I think this is probably the nail in the coffin for wide-spread option ARM abuse. I [...] [...] option ARMs. And that’s the best pricing! So much for rebate on those bad boys. I wrote an ode to the death of the option ARM awhile back and I think this is probably the nail in the coffin for wide-spread option ARM abuse. I [...]

]]> By: RIchard Geller http://blownmortgage.com/2007/11/21/an-open-euology-to-the-option-arm/comment-page-1/#comment-7122 RIchard Geller Fri, 23 Nov 2007 14:14:56 +0000 http://blownmortgage.com/2007/11/21/an-open-euology-to-the-option-arm/#comment-7122 I blogged about this post yesterday. I think it's great. We all knew what was going to happen if we had been around the block a few times. It happened in California and Texas in the early1990s...can anyone say Guardian Savings & Loan? --Richard I blogged about this post yesterday. I think it’s great. We all knew what was going to happen if we had been around the block a few times. It happened in California and Texas in the early1990s…can anyone say Guardian Savings & Loan?

–Richard

]]> By: EyesWideOpen http://blownmortgage.com/2007/11/21/an-open-euology-to-the-option-arm/comment-page-1/#comment-7070 EyesWideOpen Wed, 21 Nov 2007 23:04:58 +0000 http://blownmortgage.com/2007/11/21/an-open-euology-to-the-option-arm/#comment-7070 Lance, The option ARM is really for investors who know what they're doing. The lenders never calculated the foreclosure market and that regular consumers would abuse the minimum payment thinking long term. Lance, as an experience loan officer I challenge any loan officer who thinks he knows loan programs. What I'm saying here is when I dealt with any one wanting an option ARM and explain the program, I always heard this "the other companies loan officer didn't give me all the information or a spread sheet like you did about this program!" And Lance, I started out by telling them "the option ARM is simple....you start out with a mouse at the door and before you know it its an elephant." Boy did they understand that before the mortgage jargon the other unethical loan officers were pitching about the program and not telling the truth option ARM's. Lance, keep in mind I even would warn my borrowers who ultimately took the option ARM when it was time to get out. When I started loan originating prime rate was 4.00% and ARMS fully index with a 1 year prepay were beating the interest only rate (3/1, 5/1, etc.). Then when the war started and the prime shifted I really went out of my way to tell clients "you do not want an option ARM, 3/1, 5/1, etc. are beating the fully index rate... think long term if you plan to live or keep your home and maintain equity. Lance, four things come to mind reflecting on the business and always using ethical judgement and thinking of the client first! 1. lots of bad LO on both retail and wholesale who sold this product without full disclosed deatail 2. I watch this program spoil americans even when they knew the rish with equity in their homes and could not see the curve ball 3. Even after one year in an option ARM many borrowers who looked at other options, couldn't get passed the payment shock of an interest only program doing a refinance. They would say in returm "give me a 40 yr option ARM instead of the 30 year! Remember how this program got sophisticated when notes were selling like hot cakes on Wall Street before the credit crisis, mortgage defaults, and foreclosures 4. Any loan officer who made 3 points on an option ARM should not be in the mortgage business. Now those loan officers and brokers are out of business or headed there Lance,
The option ARM is really for investors who know what they’re doing. The lenders never calculated the foreclosure market and that regular consumers would abuse the minimum payment thinking long term. Lance, as an experience loan officer I challenge any loan officer who thinks he knows loan programs. What I’m saying here is when I dealt with any one wanting an option ARM and explain the program, I always heard this “the other companies loan officer didn’t give me all the information or a spread sheet like you did about this program!” And Lance, I started out by telling them “the option ARM is simple….you start out with a mouse at the door and before you know it its an elephant.” Boy did they understand that before the mortgage jargon the other unethical loan officers were pitching about the program and not telling the truth option ARM’s.

Lance, keep in mind I even would warn my borrowers who ultimately took the option ARM when it was time to get out. When I started loan originating prime rate was 4.00% and ARMS fully index with a 1 year prepay were beating the interest only rate (3/1, 5/1, etc.). Then when the war started and the prime shifted I really went out of my way to tell clients “you do not want an option ARM, 3/1, 5/1, etc. are beating the fully index rate… think long term if you plan to live or keep your home and maintain equity.

Lance, four things come to mind reflecting on the business and always using ethical judgement and thinking of the client first!
1. lots of bad LO on both retail and wholesale who sold this product without full disclosed deatail
2. I watch this program spoil americans even when they knew the rish with equity in their homes and could not see the curve ball
3. Even after one year in an option ARM many borrowers who looked at other options, couldn’t get passed the payment shock of an interest only program doing a refinance. They would say in returm “give me a 40 yr option ARM instead of the 30 year! Remember how this program got sophisticated when notes were selling like hot cakes on Wall Street before the credit crisis, mortgage defaults, and foreclosures
4. Any loan officer who made 3 points on an option ARM should not be in the mortgage business. Now those loan officers and brokers are out of business or headed there

]]> By: Lance Houghton http://blownmortgage.com/2007/11/21/an-open-euology-to-the-option-arm/comment-page-1/#comment-7069 Lance Houghton Wed, 21 Nov 2007 21:31:03 +0000 http://blownmortgage.com/2007/11/21/an-open-euology-to-the-option-arm/#comment-7069 To my fellow loan officers let me ask this question. Do guns kill people or do people kill people? The option arm is a very specialized loan and when used as it was originally intended a very effective loan program. That it has been sold and employed in such negative ways is not truly indicative of its value as a loan program. Consider you choices for jumbo mortgages at this time. If the CMT continues its downward trend my fully indexed rate on my own option arm will be below 6% next fall. If we head into a recession my rate may well fall to 5% or lower. The rates on jumbo 30's are not nearly as attractive. All I'm saying is that any tool can be abusded so look torwards our fellow LO's for blame and not the loan program. To my fellow loan officers let me ask this question. Do guns kill people or do people kill people? The option arm is a very specialized loan and when used as it was originally intended a very effective loan program. That it has been sold and employed in such negative ways is not truly indicative of its value as a loan program.

Consider you choices for jumbo mortgages at this time. If the CMT continues its downward trend my fully indexed rate on my own option arm will be below 6% next fall. If we head into a recession my rate may well fall to 5% or lower. The rates on jumbo 30’s are not nearly as attractive.

All I’m saying is that any tool can be abusded so look torwards our fellow LO’s for blame and not the loan program.

]]> By: Paul Hiller http://blownmortgage.com/2007/11/21/an-open-euology-to-the-option-arm/comment-page-1/#comment-7059 Paul Hiller Wed, 21 Nov 2007 18:29:14 +0000 http://blownmortgage.com/2007/11/21/an-open-euology-to-the-option-arm/#comment-7059 Oh, option arm, you little scamp. I hear you are going away for a bit. You will be missed. Remember when old man Greenspan raised rates so high that even my old party pal libor i.o. was feeling tired, and the punchbowl filled with Kool Aid was almost gone? That's when you jumped up, shouting "hang on you guys, this party is just getting started." Man oh man. You didn't just refill the punchbowl. You spiked it with LSD! That stuff was soooo strong. Get this. That stuff made me hallucinate so bad that my 250k production house looked like a million dollar mansion. Anyhow, it's been a blast, stay well, and ya know, if you're ever in the area, call me on my cell, not the house. My wife is still pissed about Cabo. Oh, option arm, you little scamp. I hear you are going away for a bit. You will be missed. Remember when old man Greenspan raised rates so high that even my old party pal libor i.o. was feeling tired, and the punchbowl filled with Kool Aid was almost gone? That’s when you jumped up, shouting “hang on you guys, this party is just getting started.” Man oh man. You didn’t just refill the punchbowl. You spiked it with LSD! That stuff was soooo strong. Get this. That stuff made me hallucinate so bad that my 250k production house looked like a million dollar mansion. Anyhow, it’s been a blast, stay well, and ya know, if you’re ever in the area, call me on my cell, not the house. My wife is still pissed about Cabo.

]]> By: Countrywide changes underwriting guidelines on option arms to account for fully amortized payments spelling the end of the option arm loan http://blownmortgage.com/2007/11/21/an-open-euology-to-the-option-arm/comment-page-1/#comment-7052 Countrywide changes underwriting guidelines on option arms to account for fully amortized payments spelling the end of the option arm loan Wed, 21 Nov 2007 17:49:16 +0000 http://blownmortgage.com/2007/11/21/an-open-euology-to-the-option-arm/#comment-7052 [...] In Case You Were Wondering: Countrywide Says It’s Fine An Open Euology to the Option ARM [...] [...] In Case You Were Wondering: Countrywide Says It’s Fine An Open Euology to the Option ARM [...]

]]> By: Dennis http://blownmortgage.com/2007/11/21/an-open-euology-to-the-option-arm/comment-page-1/#comment-7047 Dennis Wed, 21 Nov 2007 17:21:04 +0000 http://blownmortgage.com/2007/11/21/an-open-euology-to-the-option-arm/#comment-7047 "Increasing the margin just beofre the lock to increase the YSP?but all legit, you know, because the new GFE/TIL went into the mail." good night and good ridance to all that profited from the quote above. part and parcel to the horde of "newbies" that just didn't give a hoot. be sure to leave a forwarding address for the feds. “Increasing the margin just beofre the lock to increase the YSP?but all legit, you know, because the new GFE/TIL went into the mail.”

good night and good ridance to all that profited from the quote above. part and parcel to the horde of “newbies” that just didn’t give a hoot. be sure to leave a forwarding address for the feds.

]]> By: Dee http://blownmortgage.com/2007/11/21/an-open-euology-to-the-option-arm/comment-page-1/#comment-7045 Dee Wed, 21 Nov 2007 17:04:31 +0000 http://blownmortgage.com/2007/11/21/an-open-euology-to-the-option-arm/#comment-7045 No matter how many claim that their hard work and superior knowledge justified the rip-off so aptly described here, this post gives a damned accurate description of what I have seen with my own eyes. My particular favorite in all this? Increasing the margin just beofre the lock to increase the YSP...but all legit, you know, because the new GFE/TIL went into the mail. Good riddance. No matter how many claim that their hard work and superior knowledge justified the rip-off so aptly described here, this post gives a damned accurate description of what I have seen with my own eyes. My particular favorite in all this? Increasing the margin just beofre the lock to increase the YSP…but all legit, you know, because the new GFE/TIL went into the mail.

Good riddance.

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