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catherine
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Joined: 24 Oct 2007
Posts: 3202
Location: FLORIDA

Re: FHA changes requirements
PostPosted: Sat Sep 19, 2009 11:29 pm Reply with quoteBack to top

ClulessDad wrote:
Catherine-it may eventually get where the govt will exercise its eminent domain power, take back all the land and make us pay a lease payment on the house. Mexico here we come. It doesn't seem too far fetched, after all, the govt owns the banks, the insurance company, the car makers, and now real estate.

THEY ARE BUYING ALL THE FORECLOSURES IT WOULD ONLY BE SMART FINANCIALLY TO CREATE THE FINANCING TO (I THINK) RENT TO OWN OR WHATEVER GETS THOSE HOUSES INHABITED (BUTTS IN HOUSES)

AND LIKE YOU I WAS MORE FINANCIAL PLANNER WITH EVERY DEAL I DID, HOWEVER WHEN THE GOVERNMENT RUNS THINGS THEY WILL TELL YOU EXACTLY WHAT SCORE THEY WILL ALLOW, WHAT THE PROPERTY APPRAISES FOR AND IT WILL ONLY BE VANILLA 30 YEAR..........CLERKS WITH NO HEARTBEAT CAN FILL THAT PAPERWORK OUT

THEIR ARGUEMENT WILL BE THAT ALL THESE TALENTED PEOPLE WROTE MILLIONS OF LOANS THAT FORECLOSED, SO WHAT DOES EXTRA TALENT MATTER

AND IF YOU WALK ON THE GOVERNMENT - IT IS NOT LIKE TODAY'S FORECLOSURES - THE GOVERNMENT WILL HOUND YOU FOREVER


Funny how the real solution to the housing crisis and this recession is creating jobs. How can they say we are getting out of this recession, if we can't get the 7MM people who have lost their jobs back to work? We are only losing fewer jobs every month. Only Healthcare jobs are growing, but that will soon stop because the govt will start doing wage controls on all health care employees to control costs. We are nowhere close to really creating jobs. Avg work week is not growing. Federal govt jobs are being created by the new Obamanation, but bankrupt states are losing them and cutting hours. Where will the job growth come from? Small business? Good luck. They can't get financing, they can't buy a house. Ironic isn't it that the engine of the economy, the small business owner, who probably legally writes off a ton of expenses, can't buy a house, but their employees can get one?

IT IS ALL ABOUT JOBS AND THIS ADMINISTRATION SEEMS TO BE DOING EVERYTHING IN IT'S POWER TO UNCREATE JOBS.........ENERGY AND FOOD ARE WHAT WE HAVE HUGE SUPPLIES OF - THAT IS WHAT THE WORLD WILL BUY FROM US AND FOR A GOOD COST -

WHAT DO WE DO, WE PUT FOOD IN OUR GAS TANKS AND LEAVE OUR OIL IN THE GROUND............WE ARE COMMITTING SUICIDE.........

BUILDING REFINERIES, DRILLING FOR OIL, BUILDING DERRECKS, PUMPING UP OUR FOOD SUPPLY AND NOT PAYING FARMERS NOT TO GROW ITEMS

THAT IS THE ONLY WAY OUT OF THIS MESS...........NOT A NEW BUSINESS ON THE HORIZON THAT WILL PUT 30 MILLION BACK TO WORK (GREEN THIS Razz ).........

THE NUMBERS POINT TO MANY MORE THAN 7 MILLION UNEMPLOYED AND THE BAD PART - IT IS GROWING ...............

Someone tuned me into a great story here in CA about how our govt works. The San Jaoquin Valley produces almost 25% of US food. They are saying that thousands of acres of food production is dying and with it 60-80K jobs because the water is not being given to the farmers. That is right! 60,000 jobs are being lost. And you know why? To protect a 2 inch minnow in the Sacramento Delta. I am not kidding. I read about it and couldn't believe it. Just Google San Jaoquin and minnow. All they have to do is open a valve to restore 60K worth of jobs. Really. (Just to throw out why they are protecting the minnow, it is salmon food, and the other side is that the environmentalists say that 2600 jobs will be lost in the salmon industry if the water goes to the farmer.) I know there are pros and cons to both sides, but is this really the right decision right now?

THAT IS WHY THERE IS A CALIFORNIA WATER CZAR - TO MAKE SURE WE DON'T WASTE OUR WATER ON FOOD Shocked Shocked AND SAVE THE MINNOW..........DON'T YOU FEEL BETTER

AAAAAAAAAAAUUUUUUUUUUUUGGGGGGGGGGHHHHHHHHHHHH

AND THEY WONDER WHY CALIFORNIA IS LEADING THE NATION IN BROKE

AND I WONDER HOW MANY FARMERS OUT THERE VOTED FOR THIS GUY, OR HOW MANY OF THOSE GM DEALERS THAT WERE ROBBED, OR HOW MANY OF THE MILLIONS UNEMPLOYED..............

But in saying all this....................

I am not getting out of this industry. I am a one man shop, and IMHO I provide sound financial advice to my client base. I only need one closing a month to make ends meet. I can tell people the truth about their deals. If they want to go to a 22 year old kid at a bank, who has no clue about how to solve some of the complex issues on a mortgage and real estate transaction, let them go. Let the BofA's lie to them, with their loan originators on a quota system. I won't go work at a bank, or Ditech or anywhere. (My son's friend worked at Ditech for awhile and I heard all the stories about the lies they tell people just to get them in process. OMG! The DRE would cut off my ***** if I were to do that. ) They can limit the compensation with YSP eliminated, but how can they prevent lies and fraud at the retail level, if they are on a quota? How can I with my 1-2 deals a month, influence an appraiser on a value? They dont care, it is only about the big boys.

I PRAY YOU HANG ON TOO

BUT YOU SAID IT, IF YOU ONLY NEED ONE LOAN A MONTH - THE RISK AND TIME AND MONEY TO HANDLE COMPANIES THAT ONLY NEED ONE LOAN A MONTH WILL NOT MAKE IT VERY PROFITABLE FOR THE GOVERNMENT -

I KNOW THAT IS NEGATIVE BUT IF YOU AREN'T JOINING THEM AS AN EMPLOYEE FOR NO MONEY, THEN THE ONLY OTHER AVENUE I SEE BEING AROUND FOR AWHILE IS DOING THE ODD, SPECIAL LOAN FINANCING.............IN THE EARLY EARLY 80s THOSE WERE THE ONLY LOANS BROKERED

But you are right. It is all about the big boys. Two more banks were seized by Sheila "The banks are just fine" Bair. Doesn't that make 92? I guess we can believe that Obamanation is on its way to recovery. Well at least in their own minds.


THEY MUST KEEP UP THEIR LIES AND TALK REAL SWEET TO KEEP THE OTHER MILLIONS OF PEOPLE IN THE CULT MOVING FORWARD........

AFTER BEING HORRIFIED WHEN VISITING THE OVENS IN GERMANY I ALWAYS WONDERED HOW AWFUL A JEW MUST HAVE FELT WHO HAD VOTED FOR HITLER AND WAS NOW BEING WALKED TO THEIR DEATH.......

I KNOW, DRASTIC, (THAT IS IF YOU DON'T KNOW YOUR HISTORY) BUT THE FINANCIAL CARNAGE WE ARE SEEING IN THIS NATION WITH 15% UNEMPLOYMENT AND FROM THE STATS THIS WEEKEND GROWING LIKE LAVA GOING ACROSS THE NATION

AND THE KICK IS THAT IT IS TOTALLY BEING IGNORED...........IN OUR FACES IGNORED.............

BARRY IS ON TV 5 TIMES TOMORROW, NOT FOR THE UNEMPLOYMENT AND GETTING JOBS GOING, BUT TO SELL ANOTHER BIG FANCY PROGRAM TO HELP INSURE ILLEGALS,

YOU CAN'T MAKE THAT UP

I KNOW FROM HISTORY THAT THE PEOPLE NOT BEING AFFECTED IN GERMANY NEVER PROBABLY THOUGHT THE WORSE WAS HAPPENING JUST LIKE HERE SINCE IT WASN'T IN THEIR FACES

AND IF YOU ARE EMPLOYED I AM HAPPY FOR YOU.........BUT 20 MILLION OR SO WERE YOU THREE YEARS AGO..
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ClulessDad
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Re: FHA changes requirements
PostPosted: Sun Sep 20, 2009 12:06 am Reply with quoteBack to top

Snets wrote:
well - I understand the YSP isn't going away for the time being unless this new legislation completely outlaws it. It will be the same for bank LO's also - there is some talk about eliminating any incentive to charge higher interest rates. So bank LO's wouldn't get any kind of commission either - before these announcements - we were going to be able to make YSP just credit it to the customer so the net affect would be no different than what it is now - it would just disclose the YSP even louder than what we are doing now. However if they legislate that there can be no compensation based on a different interest rate - who knows what TPO will look like and how will we be competitive? I don't understand how the entire mortgage industry can change this quickly without chaos. Anyway you shake it - it will be a brave new world out there.


One of the major problems with not giving up YSP, is that the secondary market would have to be overhauled. I doubt that higher rate coupons would ever be bought and sold. The Mortgage market would be completely screwed up.

I could almost see where YSP would have to go to pay for borrower costs, except that the YSP could no longer be more than 1% to the salesguy. So 2 points max. I don't even think 1 point is that bad really, half the time I amjust trying to get .5-.75 as a commission. I just want to make a living, on my terms. I don't need a $1MM per year to survive.

Anyway, for FHA loans there is also the concept of SRP, which they must address also.

IMHO the headline print is less ominous than we think. The Fed can't afford to screw up all those bonds that have been sold to China. Maybe there is a God after all. LOL

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Snets
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Re: FHA changes requirements
PostPosted: Sun Sep 20, 2009 12:11 am Reply with quoteBack to top

from you lips.... The problem is these are becoming hot button political issues. I mean how can you vote against something that to the average guy looks like will allow further excesses in the mortgage markets. The politicians are making hay at our expense and the bankers are helping them beat the drums.
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ClulessDad
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Joined: 17 Jul 2009
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Re: FHA changes requirements
PostPosted: Sun Sep 20, 2009 12:21 am Reply with quoteBack to top

Snets wrote:
from you lips.... The problem is these are becoming hot button political issues. I mean how can you vote against something that to the average guy looks like will allow further excesses in the mortgage markets. The politicians are making hay at our expense and the bankers are helping them beat the drums.


That they are, but they can't get China and the investors mad at the US. They still need to sell bonds to finance the trillions in spending. They can't be that stupid, ................................or maybe they can.

In the next few weeks let's see what kind of changes the Fed propeses in the bond market. That be be our queue as to the direction of YSP.

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1 More Thing
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Re: FHA changes requirements
PostPosted: Sun Sep 20, 2009 1:02 pm Reply with quoteBack to top

I am starting to believe that YSP is not going to be "the" issue soon.

I believe it's going to be your ability to even qualify to do a FHA LOAN, and the restrictions that that they are about to unleash - these are going to be the biggest filters we will see in quite some time.

If they are now going to require Mortgage Bankers/Brokers (those who have FHA licenses) to have audited financials proving that they have adequate reserves of $1,000,000. THAT ALONE will wipe out a lot of small companies. ---well unless they have a cool million sitting around....

Things are about to change drastically. So I don't think issue is going to be what kind of YSP will you be able to charge ....being able to get an FHA license is going to be the real issue.
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itiswhatitis
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Re: FHA changes requirements
PostPosted: Sun Sep 20, 2009 2:31 pm Reply with quoteBack to top

1 More Thing wrote:
I am starting to believe that YSP is not going to be "the" issue soon.

I believe it's going to be your ability to even qualify to do a FHA LOAN, and the restrictions that that they are about to unleash - these are going to be the biggest filters we will see in quite some time.

If they are now going to require Mortgage Bankers/Brokers (those who have FHA licenses) to have audited financials proving that they have adequate reserves of $1,000,000. THAT ALONE will wipe out a lot of small companies. ---well unless they have a cool million sitting around....

Things are about to change drastically. So I don't think issue is going to be what kind of YSP will you be able to charge ....being able to get an FHA license is going to be the real issue.


Right on......

And, I don't really have a problem with this. If the originating lender is able to sell the loan and risk to someone else than FHA (aka you and me the taxpayer) has every right to be confident that the originating lender will have the ability to buy back that loan if originated improperly. More importantly though is the discipline this will put on the industry to do things the right way. Painful process in the short term but a necessary evil for the long term.

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ClulessDad
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Re: FHA changes requirements
PostPosted: Sun Sep 20, 2009 2:51 pm Reply with quoteBack to top

1 More Thing wrote:
I am starting to believe that YSP is not going to be "the" issue soon.

I believe it's going to be your ability to even qualify to do a FHA LOAN, and the restrictions that that they are about to unleash - these are going to be the biggest filters we will see in quite some time.

If they are now going to require Mortgage Bankers/Brokers (those who have FHA licenses) to have audited financials proving that they have adequate reserves of $1,000,000. THAT ALONE will wipe out a lot of small companies. ---well unless they have a cool million sitting around....

Things are about to change drastically. So I don't think issue is going to be what kind of YSP will you be able to charge ....being able to get an FHA license is going to be the real issue.


I am not sure that I understood the language the same way. The Mortgagee (Wholesale lender) must have the audited financials and the $1000000 in the bank. I think it allows the Mortgagee to approve brokers themseleves without FHA approval. Instead of the Brokers being approved diresctly with FHA, you will now have to be approved by a Mortgagee. And that is where we have no clue how these rules will be interpreted by the Wholesale lenders.
I am not sure but it appears that FHA is going to put the liability of bad loans on the wholesalers and they in turn will put it on the brokers.

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1 More Thing
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Re: FHA changes requirements
PostPosted: Mon Sep 21, 2009 2:10 am Reply with quoteBack to top

I think that I will go with the "culture" of business today and look at which process will "eliminate" and filter out the most Originators.

Since there still appears to be a significant amount of fraud gojng on and the FBI is still extremely busy with fraud in the files.

I believe that the Feds feel they have not sliced deep enough. If they cut out 30% more pople in the business - that's fewer people with the potential to do fradulent loans.

By increasing the level of reserves you have to $1,000,000 (one million) on your AUDITED financials submitted to them ....that will "wack" a lot of folks. That will get rid of a lot of people --- good and bad.
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catherine
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Re: FHA changes requirements
PostPosted: Mon Sep 21, 2009 2:55 am Reply with quoteBack to top

1 More Thing wrote:
I think that I will go with the "culture" of business today and look at which process will "eliminate" and filter out the most Originators.

Since there still appears to be a significant amount of fraud gojng on and the FBI is still extremely busy with fraud in the files.

I believe that the Feds feel they have not sliced deep enough. If they cut out 30% more pople in the business - that's fewer people with the potential to do fradulent loans.

By increasing the level of reserves you have to $1,000,000 (one million) on your AUDITED financials submitted to them ....that will "wack" a lot of folks. That will get rid of a lot of people --- good and bad.


you are soooooooooo right, they will cut until they control every piece of the industry and they continue IN OUR FACE to say that sure we can all stay in and work hard

BUT THEY ARE GOING TO CONTROL EVERY PAYCHECK WE GET, EVERY PENNY WE MAKE THEY ARE GOING TO CONTROL IT........

and they will use every avenue to weed private individuals out,

first the money reserves upped like we are seeing, then the rates TPOs get will be worse and finally if you hang on they WILL TAKE AWAY YOUR PAY..........they are going to get ugly.
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StephenF
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Re: FHA changes requirements
PostPosted: Mon Sep 21, 2009 7:37 pm Reply with quoteBack to top

Quote:
I am not sure that I understood the language the same way. The Mortgagee (Wholesale lender) must have the audited financials and the $1000000 in the bank. I think it allows the Mortgagee to approve brokers themseleves without FHA approval. Instead of the Brokers being approved diresctly with FHA, you will now have to be approved by a Mortgagee. And that is where we have no clue how these rules will be interpreted by the Wholesale lenders.
I am not sure but it appears that FHA is going to put the liability of bad loans on the wholesalers and they in turn will put it on the brokers.


Is it possible that Brokers become defacto Net Branches of multiple Lenders? A/K/A The Wholesale Lenders that will have you?

I'll go one step further...Imagine the Wholesale Lender saying "sure you can provide us with your FHA originations...but did we mention that we only pay a flat fee of "X" for that loan"

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