Implode-Explode Forums

RE: Congress is THE problem! It needs a massive turnover!

Author: maudejo
Posted: Thu Jul 24, 2008 1:03 am (GMT 0)
Topic Replies: 17

icenvegas wrote:

brokerjohn wrote:

icenvegas wrote:

I'm writing in Broker John for president.

How come no one is courting the mortgage broker/loan officer vote?

because were broke, poor, and have been lumped in with Mozilo.

But we all look good so that's got to count for something.
_________________
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Timid men prefer the calm of despotism to the tempestuous sea of Liberty.
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Fear is the passion of slaves.
Patrick Henry
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Debt to Income ratios and Child care expense

Author: cobalt360
Subject: Debt to Income ratios and Child care expense
Posted: Thu Jul 24, 2008 1:02 am (GMT 0)
Topic Replies: 0

Fortunately I have not had to pay childcare - until now. We have a soon to be three year old, a five year old, and a soon to be 7 year old.

My wife went back to teaching after many years, and I just started a job to get a regular paycheck.

Before and after daycare for my 5 and 7 year old is $400.00 per month.

Full-time care for my little guy is $600 to $800 per month. Let's just call it $1,000 total per month.

I can't help but think about all of those loans that were approved with a 50, 55, 60 percent or even higher dti - childcare alone is almost 25% of our net income !

After childcare, gas, and taxes, I make about $35 per day. I think I am going to quit my job and get licensed for daycare. I am very serious about this.
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2 Corinthians 12:9 But He said to me, " My Grace is sufficient for you, for my power is made perfect in weakness." Therefore I will boast all the more gladly of my weaknesses, so that the power of Christ may rest upon me.

RE: What Just Bugs The Crap Out of You?

Author: Catcat
Posted: Thu Jul 24, 2008 1:01 am (GMT 0)
Topic Replies: 1565

oh Strouper I'm sorry!!!! Holy cr*p!!
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SERENITY NOW...INSANITY LATER

RE: Is anyone still doing the option ARMs?

Author: Lakshmi
Subject: Re: Option Arms
Posted: Thu Jul 24, 2008 12:52 am (GMT 0)
Topic Replies: 13

McFly wrote:

Exmtgguy - too funny

I had an LO call me last week asking if we did option arms. I asked her if she'd been in a cave for the past year. She said, "well the low start rate is the only way I can get this borrower to qualify".

.......I made certain to save her ph# in my cell for future reference.

Her name is now programmed as DO NOT ANSWER.

Sadly, this is a completely true story.

Its time...

Its time to find out if Wall Mart will let her have her old job back...

Hey, where are all the @SSHOLES that USED to post what a great loan the "mortgage accelerator program" was?
_________________
There are two kinds of people in the world, my friend: Those with a rope around the neck, and the people who have the job of doing the cutting. -- The Good, The Bad, and The Ugly

It has always been the prerogative of children and half-wits to point out that the emperor has no clothes. But the half-wit remains a half-wit, and the emperor remains an emperor.

RE: NEW HOUSING BILL - SUMMARY

Author: Rolo Tomasi
Posted: Thu Jul 24, 2008 12:38 am (GMT 0)
Topic Replies: 23

poorprocessor wrote:

Do_the_math wrote:

I am talking about maximum loan LTV on all FHA loans. The verbiage change would put the maximum LTV on FHA SF at 100%. The old LTV limitations would be gone.

The 3.5% downpayment would be allowed to be borrowed from family members and secured as a second.

And I just have to ask...how does "borrowing" a 3.5% DP from a family member even if it is secured solve anything? Borrowers still don't have any of THEIR money invested...

well technically they do have 3.5% of their money that they borrowed (and must pay back seperately) invested....
yea it's a little transparent, but not as much as a seller funded DPA.
so i think DTM means they will allow 100% CLTV (96.5 first lien and 3.5% second lien from a family member secured by a lien on the property).
i'm sure she will correct me if i'm wrong.
I know i need to read the full text of the bill, but a bike ride around the lake seems like a much better idea right now...

SIDE NOTE...i wonder how much of the 3.5% will be true down payment and how much will be closing costs? or will there be a seperate closing cost requirement? such as now, with FHA min down payment being 2.25% but a min 3% investment???
it would be nice if they just made the LTV and the investment the same....that would save me endless hours explaining the difference to realtors and borrowers...
_________________
Career-ending case of the giggles..
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RE: REALTOR LAWSUITS?

Author: brokerjohn
Posted: Thu Jul 24, 2008 12:33 am (GMT 0)
Topic Replies: 54

suzyQ wrote:

brokerjohn wrote:

suzyQ wrote:

Well said Kindandgentlejd.

I do a lot of Realtor education classes - they stopped coming for a few years because they knew a warm body could get a winky loan from somebody. Now they are coming back and when I start out with "Remember that a third of your licensing was about finance?" they start backpedaling.

I spent seven years as a Realtor and was extremely involved with the financing - I call it the "Key to the Vault." Short of the rare cash buyer - its all about the money. Show the house. Write the contract. And understand what it takes for the buyer and the property to both be approved.

I pulled many a buyer out of a crappy financing switch and bait deal as their agent. I will keep the deal on the house together and let's get you the best financing you qualify for. Fiduciary duty is to serve their best interests in all aspects of the transaction.

As an agent you went over and above to service the needs of your client. That makes you an excellent Real Estate agent. However, you were under no requirement to offer that added value.
Fiduciary duties do not extend to financing, at least in this state. The knowledge of financing a realtor has is only used in an advisory capacity. If a client asks for advice, it is a different situation.

When I was an agent - been over 10 years - I didn't care or necessarily know what the lender was making. Buyers ask for referrals and if they choose one of the lenders I referred them to - I expected them to be taken care of fairly. Just because the relo company would pay up to 3 pts didn't mean you could charge 3 pts. If market is par @ 6.5 on a 30 year fixed A+ borrower I wouldn't expect them to be getting a rate of 7 or surprised with an option arm.

Fair and reasonable. There are easy quick deals and lengthy suffering deals. Make as much as you reasonably can without abusing people's trust or ignorance.

I completely agree. if the lender is not acting in the best interests of your client, you have the right to advise your client of that fact.
However, if you did not, would you consider it a breach of your fiduciary duty?

If your client disagrees with your opinion, what then?
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Don't Tase Me, Bro!

RE: What Just Bugs The Crap Out of You?

Author: suzyQ
Posted: Thu Jul 24, 2008 12:32 am (GMT 0)
Topic Replies: 1565

Strouper2 wrote:

So what's bugging the living sheat out of me right now?
What making me say "there no freaking way this is happening?
What's making me want to curl up in the fetal position and cry?

I came home to get something to eat and was here maybe an hour maybe. I go back out get in my truck to go back to work & yep you guessed it dead as a doornail! What the F I didn't even know a battery could die in that short of a period of time. Best yet I parked in our 1 car driveway & the van is in the garage, of course, plus do I even need to say the battery is on the wrong side of the car so I can't even jump it from my neighbors driveway (we live in a duplex type of condo and our driveways are about 2 feet apart). I'm afraid to push it out into the street, even if I could do it by myself it's a Jeep Cherokee, because if it doesn't start I can't get it back in the driveway and I probably can't get a tow this late. Cars are just great WHEN THEY'RE RUNNING!

Strouper

Criminy Strouper! I have been having a problem with my Cherokee and keep avoiding taking it in. Sometimes just fades away while driving - and then of course there is no steering. Friday night wouldn't start at the office - but felt better Sat morning. First time in 8 years. Hope its just a battery.
_________________
"I think we consider too much the good luck of the early bird and not enough the bad luck of the early worm." FDR

RE: What Just Bugs The Crap Out of You?

Author: Strouper2
Posted: Thu Jul 24, 2008 12:31 am (GMT 0)
Topic Replies: 1565

Hey the one bright side is I do have just enough beer in the house to get me through the night!
_________________
Yes I do like Strippers-too!

They're no stupid people in life just smart people that make bad decisions! Yeah right.

RE: Stop oil speculator trading

Author: Strouper2
Posted: Thu Jul 24, 2008 12:29 am (GMT 0)
Topic Replies: 100

Or $1.50 for an apple or $1 for a lemon that you get what maybe a teaspoon of juice out of. It getting freakin ridiculous. I used to love government cheese my aunt was getting it back in the 80's and they always gave her so much that she couldn't eat it all so we got the excess.
_________________
Yes I do like Strippers-too!

They're no stupid people in life just smart people that make bad decisions! Yeah right.

RE: Stop oil speculator trading

Author: EnergyTrader
Posted: Thu Jul 24, 2008 12:29 am (GMT 0)
Topic Replies: 100

thebfgb wrote:

icenvegas wrote:

well.. 80 a barrel would but prices about 2.35 right? I could live with that. However here's the problem, prices come down, gas gets cheaper, as fuel costs decrease demand increases, and BAM... here we go again.

ummm dont you remember - we were told on these forums that supply/demand does not necessarily affect price.

you were told that an increase in supply via increased domestic production would not necessarily bring downt the price.

RE: What Just Bugs The Crap Out of You?

Author: Strouper2
Posted: Thu Jul 24, 2008 12:21 am (GMT 0)
Topic Replies: 1565

So what's bugging the living sheat out of me right now?
What making me say "there no freaking way this is happening?
What's making me want to curl up in the fetal position and cry?

I came home to get something to eat and was here maybe an hour maybe. I go back out get in my truck to go back to work & yep you guessed it dead as a doornail! What the F I didn't even know a battery could die in that short of a period of time. Best yet I parked in our 1 car driveway & the van is in the garage, of course, plus do I even need to say the battery is on the wrong side of the car so I can't even jump it from my neighbors driveway (we live in a duplex type of condo and our driveways are about 2 feet apart). I'm afraid to push it out into the street, even if I could do it by myself it's a Jeep Cherokee, because if it doesn't start I can't get it back in the driveway and I probably can't get a tow this late. Cars are just great WHEN THEY'RE RUNNING!

Strouper
_________________
Yes I do like Strippers-too!

They're no stupid people in life just smart people that make bad decisions! Yeah right.

RE: REALTOR LAWSUITS?

Author: suzyQ
Posted: Thu Jul 24, 2008 12:15 am (GMT 0)
Topic Replies: 54

brokerjohn wrote:

suzyQ wrote:

RE: Stop oil speculator trading

Author: poorprocessor
Posted: Thu Jul 24, 2008 12:10 am (GMT 0)
Topic Replies: 100

oooh I remember government cheese... but I don't like cheese so I'm just SOL...
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I'm just a lowly processor, I must not know anything.

RE: NEW HOUSING BILL - SUMMARY

Author: poorprocessor
Posted: Thu Jul 24, 2008 12:08 am (GMT 0)
Topic Replies: 23

Do_the_math wrote:

And I just have to ask...how does "borrowing" a 3.5% DP from a family member even if it is secured solve anything? Borrowers still don't have any of THEIR money invested...
_________________
I'm just a lowly processor, I must not know anything.

RE: Ideal Mortgage Bankers going out of business!

Author: DMC
Posted: Thu Jul 24, 2008 12:07 am (GMT 0)
Topic Replies: 92

DTM wrote

Quote:

While the model may be technically correct, the pricing results in loan costs that are approximately 300 bps higher than typical lenders when you add the borrower broker fee. So it is appropriate to question whether an unearned referral exists based on the higher borrower cost which is attributable to the referral by the non approved broker.

I think the fundamental challenge with this business is that they are trying to run it based on a retail revenue model and not a wholesale one. An organization has to be willing to accept less revenue/net income in a wholesale transaction because presumably the broker is doing the work. They justify the higher rates because they have higher operational costs associated with handling those transactions in ostensibly a retail mode.

I also don't think that they are seeing cream of the crop business. They are taking in the loans that someone else is passing on for whatever reason. A 700 borrower isn't going to knowingly take that high of a rate. It's going to be the shopped-around borrower who just needs to get their deal done and will take that price because they've been told 'no' by too many other lenders.

In addition, it is my further assumption that they see an opportunity to capitalize on streamline refis 5-7 months after this initial transaction is completed. So that 300 bps that DTM refers to then becomes 400 bps in total revenue for Ideal.

In order for this business model to get 'mainstreamed,' they have to focus on higher credit quality deals and they have to accept less revenue per loan to compete with the larger FHA players.