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U/W SAYS:: (November 11, 2009 10:22pm)

If HUD wants to fix this, they have to set the alliance straight from the start. Contract the underwriters out to the lenders with out any control over their jobs by the lender and things like whats happening at Lend America will no longer happen. Nothing is going to change until HUD changes the system of letting the underwriters be employed by the lender, rather than HUD. The underwriters should only serve but one directive and that is the 4155, not the lender. Currently, if they take that stance they are out of a job. Sales is king, over rides, coercion, threats; these are the tactics used to achieve the greed. Take them out of the equation, problem solved.

Incredulous by gov't policies: (October 23, 2009 11:54pm)

The gov't is the one who "introduced" & "allowed" all these programs they are now pointing fingers and shutting lenders down for. If you check ANY lender who offered these programs, you will find the same thing everywhere. They ALL have "failure to document borrower's creditworthiness and allowing excessive fees". That is what these programs were designed for. SISA(Stated Income, Stated Assets), NINA (No Income, No Assests). Come on...you can't really believe that the borrower doesn't overstate his income to get a loan. The original plan was to offer these to people who had perfect credit and high FICO scores...then, they lowered the bar again and again and when it caused the foreclosure rate to go up, the lenders were held responsible. How absurd! Going back 2-3 yrs, when the laws that are in place now didn't exist, and pointing fingers doesn't work for me. That was the law then. Did anyone think of that when all these lenders are going under? Maybe they didn't do anything wrong???

Incredulous by gov't policies: (October 23, 2009 11:35pm)

I've been in the business for over 20 yrs and I can tell you when things started to go bad...when they introduced FICO scores and automated underwriting. That changed everything. You no longer need a "human being" to assess the risk of a loan package...we have computers that do that now...computers that base everything on statistics. Computers that will approve a file in one part of the country and deny the exact same file in another. Simply because the gov't wants to populate certain parts of the country. This changed underwriting because for a conventional loan, you no longer need an u/w to assess the risk...all they do is validate what was input into the computer. Gov't loans still require the u/w to assess the risk and are allowed to "downgrade" the file if they find something that doesn't get picked up by the computer. Conventional u/w's don't have to be certified in anyway...they just have to know how to read an appraisal (well, kind of). We now have AVM's to do that, too

Coloradomortgageratesguy: (October 23, 2009 9:35am)

More fraud, in the mortgage industry, say its not so!! Of course there is going to be more "mortgage consultants" that are nothing more than used car salesmen that are going to make the true mortgage professionals continue to look bad. <A href="http://www.coloradomortgageratesguy.com">Colorado mortgage rates</A> -Thanks!

texasrealtor: (October 23, 2009 7:01am)

I was under the impression that the tax credit was taken at the time you file your income tax return. If I am correct, why would they have so much fraud already?

Dan: (October 22, 2009 8:58pm)

There is not another single industry that has more HORSEdoodoo going on on a daily basis than this one....I'm out...ya'll have fun now....going to build electric cars...let me know if this pile of crap ever settles down and I may return, but with the bureaucrats running the appraisal and lending industries, its sure to be a downhill slide to hell and does not seem to be getting any better any time soon...have a nice day...

Clulessdad: (October 22, 2009 6:00pm)

This AI sounds like a bunch of whores ( No offense to anyone on this blog) Are the guys that run AI ex Goldman Sachs? LOL BTW- after 10 years of watching CNBC, I switched to FOX Business the other day. They seem to be telling the truth rather than "pimping" the stock market.

joecolorado: (October 22, 2009 5:52pm)

Ill & Important. just told the client to make other arrangements for getting the report. I had already sent the entire report in pdf form but they required it in AI from. That wasnt going to work, so I asked them to reassign to another appraiser willing to translate report to AI, if they wouldnt accept the original report. Thanks for your help, I appreciate it.

**IMPORTANT**: (October 22, 2009 5:45pm)

jOE COLORADO, YOUR SIGNATURE IS THE LAST OF YOUR PROBLEMS, AI READY (APPRAISAL INSTITUTE) ALLOWS YOUR REPORTS TO BE TRUNCATED. THIS MEANS ALL THE SUPPORTING INFORMATION FOR AN ADJUSTMENT COULD BE MISSING. SOMETIMES THE SIGNATURE IS LEFT IN THE REPORT IN A FEW SPOTS, NOW YOU HAVE AN INCOMPLETE REPORT WITH YOUR SIGNATURE. AI READY IS THE BEST WAY TO HAVE YOUR INFORMATION STOLEN AND GIVEN TO COMPANIES LIKE ZILLOW. READ THE ARTICLE ON FREA'S WEB SITE. THE LEGAL IMPLICATIONS ARE SCARY.

Clulessdad: (October 22, 2009 4:36pm)

Here is a good one-Purchase, 10% down conf conv O/O SFR. Borrower is 800 FICO, PhD salaried position 38% DTI, enough assets for 20% down, wholesale lender that is selling to BofA. Property was 85 days from shortsale to purchase contract. NO MI company will take the loan. From what I heard, MI does NOT wnat to do any CA property and will find any excuse to deny the MI cert. I guess they still think values are gonna come down.

Just the Facts: No SpinZ: (October 22, 2009 3:25pm)

Tiryan, Here is website with info, you will need www.: irs.gov/newsroom/article/0,,id=174034,00.html Update Dec. 11, 2008 — The Mortgage Forgiveness Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualify for this relief. This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion doesn’t apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.

ILL Appraiser: (October 22, 2009 3:13pm)

Joe-One or more of the programs, according to my most recent CE teacher, takes just the first two pages of the report and puts the pertinent info into an AVM and sends these pages only to the processor/underwriter. The rest of the report goes to some place far, far away, and stored, and never the twain shall meet again unless of course there is a major problem like they want to sue the appraiser. Could it be AI?

joecolorado: (October 22, 2009 3:00pm)

I was just requested to send a report AI ready, not knowing what it meant I said I would find out the methodology and comply. Little did I know that the AI process removes the signature from the report!!!! and I assume puts itback on when they have it in its entirety, as its a separate pdf file. Did anyone else out there realize this could happen?

20YR LO: (October 22, 2009 2:53pm)

Simple Solutions: Calif. is a non recourse state, can not 1099 for purchase money transactions on real estate foreclosed ( this is a state-to-state thing)if you are in another state your state may allow it. Taking out cash for 2nd's is another thing and they can come after you. Maybe what you are thinking of is short sales which are subject to being 1099.

Dallas Broker and Proud of it: (October 22, 2009 1:27pm)

Branker Gal, got news for you. The head of the company the Fed hired to conduct the research on the new GFE (after 5 previous tested versions) testified before Congress that the new GFE still resulted in the borrower picking the more expensive loan/closing costs the majority of the time because they could not understand the YSP disclosed by the broker. She testified that they thought they had minimized the slant to the banker, but it was still anti broker. I remember her testimony last year and the idiots on the financial committee and at the Fed said "too bad".

SimpleSolution: (October 22, 2009 1:21pm)

Thank you.....appreciate the info tiryan.

tiryan: (October 22, 2009 1:18pm)

SimpleSolution, it is the mortgage debt forgiveness act of 2007 good through 1012 they can 1099 you BUT you will not have to pay the taxes on the loss as long as it was a primary residence

FHA'er: (October 22, 2009 1:16pm)

A Chapter 7 bankruptcy (liquidation) does not disqualify a borrower from obtaining an FHA mortgage if at least two years have elapsed since the date of the discharge of the bankruptcy. Additionally, the borrower must have re-established good credit or chosen not to incur new credit obligations. The borrower also must have demonstrated a documented ability to responsibly manage his or her financial affairs. An elapsed period of less than two years, but not less than 12 months, may be acceptable if the borrower can show that the bankruptcy was caused by extenuating circumstances beyond his or her control and has since exhibited a documented ability to manage his or her financial affairs in a responsible manner. Additionally, the lender must document that the borrower's current situation indicates that the events that led to the bankruptcy are not likely to recur. A Chapter 13 bankruptcy does not disqualify a borrower from obtaining an FHA mortgage provided the lender documents that one year of the payout period under the bankruptcy has elapsed and the borrower's payment performance has been satisfactory (i.e., all required payments made on time). In addition, the borrower must receive permission from the court to enter into the mortgage transaction. Handbook 4155.1: 4.C.2.g-h

SimpleSolution: (October 22, 2009 1:11pm)

I have a question-There was a law passed...forgot what it was called....that when a property is foreclosed on the lender can't 1099 you. Does anyone know if that law was temp. or permanent.....

Lender: (October 22, 2009 1:01pm)

FHA is changing their BK status timeframe for another purchase. I believe a a short sale now takes 4 years to re-purchase, and a BK is 5 years. It's a new rule coming into effect, I believe Jan 1. I may be wrong though. Check it out on HUD's website.

Shelly : (October 22, 2009 12:54pm)

I have a client whose sister just filed for BK, and they told her she would have to wait 4 years before she could get a loan? I wanted to know if you know anything about this? Does this change in January? If so, who would be grandfathered by this? I'm talking about an FHA loan. Please let me know asap. I have two clients that will be out of the bk in January, and are waiting to buy. Thanks Shelly

Just the Facts: No Spin: (October 22, 2009 12:26pm)

I can not understand the short term gratification that everyone is celebrating that the HVCC is tied to the anti-consumer big Central Planning government program called Consumer Financial Protection Agency Act. WAKE UP WAKE UP WAKE UP!!! Have you been paying attention to the Central Planning government anti-consumer over regulation of consumer choice and control that has been devastating the free market from working on solving the problems. Problems created by the Federal Government's using the ECOA to force loan originators to offer loans that Wall Street created at Fed's urging and their greed for people with bad credit and no savings. The government is currently hiding from this past policies, obviously pointing their fingers at LO's that they would have fined through the Justice Department if they did not offer the high risk loans to those high risk borrowers. Big mistake celebrating HVCC being tied to another HUGE bureaucratic Central Planning government Agency.

SimpleSolution: (October 22, 2009 12:21pm)

CA.AAC-Well put thank you.....

GOD: (October 22, 2009 12:18pm)

Found this in an eulogy. Truer words have not been spoken, especially now "The world needs more people who do not have a price at which they can be bought; who do not borrow from integrity to pay for expediency, whose handshake is an ironclad contract, who are as honest in small matters as in large ones, and who do not believe that shrewdness, cunning and ruthlessness are the three keys to success."

Valuequestor: (October 22, 2009 12:13pm)

Hello Hello Hellooo. I posted this yesterday and ddn't get one response. I thought it was great news because any delay indicates that HUD may have overdreached on this any comments?...Here is the statement: Implementation of FHA’s new policy guidance for condominium project approval and condo unit financing will be delayed until December 7th 2009. The new guidance, to be issued within the next two weeks, will: 1) offer additional leniencies to address the difficult market conditions and 2) augment some portions of FHA Mortgagee Letter 2009-19, providing additional information and clarification. Until the new guidance takes effect on December 7th, 2009 lenders may continue to use the Spot Loan Approval guidance issued in Mortgagee Letter 1996-41. Further, the site condo and manufactured housing condo project changes that have already been implemented are not affected by this delay.......

Just Pissed: (October 22, 2009 12:06pm)

Hey Guys, hate to break it to ya, but even people with good credit default, credit score does not reflect job stability. I know plenty of people with 700+ ficos that purchased with full doc that are facing default because they LOST THEIR JOB. It is great to have higher FICO requirements, but the heart of many of our defaults has nothing to do with irresponsibility or unwise decisions, as much as failing businesses and layoffs.

vorpal bunny: (October 22, 2009 11:47am)

I'm with the others who believe we should NEVER allow seller paid DPA's back nor should we be doing this FTHB credit anymore. Sller funded DPA's were a total work around to the then required 3% down. Housing needs to go back to being a 'need for shelter' motivation not a 'I can make money on this' transaction. The blanket $8000 amount - who came up with that friggin' number anyways?! Serious cash windfall to some and to others it's a flea bite. With a potential 5-7 million in 'shadow inventory' still there, the FTHB credit ain't gonna help that much.

Ancient Appraiser: (October 22, 2009 11:30am)

Having put the appraisal business on a Part Time schedule and put on my Real Estate Broker hat I'm still jazzed there has been some movement on riding the industry of the HVCC. As far as Loan Brokers vs Bankers; each has their own niche but I usually get a response from my Broker while waiting a few days for the Banker to free his time to call back !

CA.AAC: (October 22, 2009 11:27am)

Mortgage Brokers - So you guys & gals get a better understanding of why State Licensed Appraisers are opposed to the HVCC and AMC's. An AMC is just an "appraisal processor". What would be your response, if your "loan processor" was to redirect and comingle, as much as 60%, per deal, of your Broker Fee for your professional services paid by the Borrower/Consumer to their personal bank account, without disclosure or your authorization?

Just the Facts; No Spin: (October 22, 2009 11:23am)

Banker Gal, The new GFE is intended to confuse the consumer and disadvantage mortgage brokers. Read the 2008 Federal Reserve & 2004 Federal Trade Commission studies that identified YSP disclosure as being anti-consumer and anti-competitive by hurting mortgage brokers. Please, the consumer does not care how you derived at the interest rate closing cost combination. They just want to know what are the terms and what is it going to cost? As well, the new GFE does not give the borrower the total amount of money they will be needing at closing because it does not account for down payment or any proration of taxes back to seller. The new GFE is a continuation of HUDs' anti-consumer pro bank policies it started back on November 2, 1992 with forcing mortgage brokers to begin putting YSP on GFE. If you were around, you will remember the judicial system being thrown into chaos with judges all over the country unable to have consistent rulings because it makes absolutely no sense to disclos

Starving Appraiser: (October 22, 2009 11:15am)

Real-LOL, are you in or are you out? My guess is you're IN. Feels better to smile @ fellow bloggers than to be p.o.'ed @ them.

CA Appraiser: (October 22, 2009 11:12am)

**BREAKING HVCC NEWS** The House Financial Services Committee has just passed an amendment to the Consumer Financial Protection Agency Act to sunset the HVCC. See article @ CNBC.com by searching "HVCC" Could this be the end of HVCC??? Looks pretty promising.

real appraiser: (October 22, 2009 11:09am)

starving appraiser and lender. Can anybody say group hug.

Starving Appraiser: (October 22, 2009 11:07am)

United, you're referring to "the right to free enterprise" that HVCC has stripped the indpndt apprsr of, to which I agree wholeheartedly. News says TARP $$$/bailout may be in the works for SBA loans thru local banks... we can only hope. More debt, but at a lower rate. Closer to "trickle up than trickle down, IMO.

United we Stand, Divided we Fall: (October 22, 2009 10:55am)

Food for thought, would'nt it be nice to be able to just run our businesses, and control our own destiny, the days are not as beautiful with all these impediment in the way. Really no amc work, no Fha work, can't advertise for new business, amc's wants you to pay to work, business credit being cut back, can't work at the local level, Don't know what AMC's are ligitimate, the list you pay for is all over the USA. What is suppose to happen in November with the petition, are the signatures just gonna be dumped on Coumo, piss a bitch and business is as usual. We don't get stimulus money, we need to rid business drama out. We're entering the holiday season, and I think the stress level is going up. Thanksgiving is coming up, what's the petition agenda, topics, strategy, etc.

Starving Appraiser: (October 22, 2009 10:47am)

On subj now. FTHB tx credit filings are not all done by acctnts. My daughter did hers over the Inet herself. No fraud involved I'm sure 'cause she knows I can't afford to bail her out of jail right now, not that I would anyways.

Starving Appraiser: (October 22, 2009 10:35am)

Thanks Lender....It is a good day for all and "IT'S ALL GOOD". Pointing out an accomlishment, by whatever means, I take as a positive. Glad to be your fellow blogger today.

Lender: (October 22, 2009 10:31am)

You got it Starving Appraiser. Today is a good day for all of us. I guess the constant complaining accomplished something. Oh yeah, one day off, I forgot already.

Starving Appraiser: (October 22, 2009 10:29am)

Glad to know you think of me sometimes...LOL. No offense taken by the "moron" remark, I'll take it as a friendly jab. BUT, can we agree to play nice today, for at least 1 day, and continue with constructive and useful input such as you provided? PLEASE, 1 day is all I'm asking for. I'm up to, how 'bout you???

SimpleSolution: (October 22, 2009 10:28am)

I thank you for that info also LENDER. It made my morning.... :)

20YR LO: (October 22, 2009 10:27am)

Clarification & misconception: Not all mortg. bankers work in bank branches or collect salaries, never have 100% commission. I'm on the west coast the banks I have worked for the past 20 yrs are back east and do not have a bank branch west of the Mississippi. Mortgage bankers operate the same as brokers with the differance being able to underwrite & fund in branch, I get my clients the same way you do, referrals from RE agents, past clients & knowledge, I also have the same license & cont. Ed as brokers. Have to have it to broker if need arises. So please quit saying mortg bankers are merely over charging 1 loan fitts all uneducated order takers. And please that 1 story you have of taking a deal away from the big bad bank LO. Good bank LO's will take from bad brokers as will good brokers from bad bank LO's. We all have our strong points. Peace

Aaron Norris: (October 22, 2009 10:26am)

We've been pushing for simple assumptions that saved CA in the last downturn. Thought you might enjoy this video of I Survived RE 2009 from last month. This fundraiser brought people from several sectors together to talk solutions and legislation that our association were pushing for. Includes David Kittle of the MBA. Anyway, thought you guys might especially like Part 3 which is the panel discussion. http://www.thenorrisgroup.com/blog/video-blog/i-survived-real-estate-2009/ Thanks for all the great videos. I watch and promote weekly.

Lender: (October 22, 2009 10:20am)

My pleasure Starving Appraiser. I thought of you first when I got that news. You're still a moron though. LOL

EdC: (October 22, 2009 10:20am)

It should have been sunsetted before it was strongarm implemented through coercion from Cuomo upon the GSE's. Thanks for the news and link, Lender.

SimpleSolution: (October 22, 2009 10:18am)

Frank-Can't wait to hear it. Fingers are crossed...

Frank Garay: (October 22, 2009 10:18am)

We'll have an interview with the NAMB pres about it for you tomorrow guys! But it IS a small victory for us!!!

MW: (October 22, 2009 10:17am)

Just funded a deal today: 720MID $16k RESIDUAL monthly income $1m reserves AFTER close Full Doc 16 years on the job got stipped to DEATH! Borrower did a rapid rescore and the creditor in question (small credit card) updated balance but Transunion reported it as "in dispute". U/W asked for a credit supplement which we provided. Then they requested ANOTHER rapid rescore so the 'in dispute' was removed. This was requested the day before we were supposed to close.

Starving Appraiser: (October 22, 2009 10:15am)

Thank You LENDER for sharing that shred of hope with us. Couldn't get the link to work but found the article on CNBC website. Here's a lil something from it "The House Financial Services Committee has just passed an amendment to the Consumer Financial Protection Agency Act to sunset the HVCC." >>> Worthwhile reading for all here & I'll be keeping an eye on CSPAN for more news later today!!! Thanks again Lender!!!

Frank Garay: (October 22, 2009 10:13am)

Actually you have NAMB to thank for it. They were the ones that got Miller to do it. We'll have the details for you tomorrow with an interview the the NAMB President were getting today.

Mini Me: (October 22, 2009 10:11am)

Ok, I'll put my 2 cents in ... Yes we all want to see new borrowers in the market but rather than force a square peg into a round hole.. why not focus a little more attention on GOOD borrowers WITH down payment! I've got THREE borrowers looking for million plus loans on my desk, all have 20 to 25% down, cash reserves, and DTI's less than 30 with monthly residuals higher than most DAP eligible borrowers salary! All have 800+ Ficos and none can find a damn loan! They are even willing to pay a higher interest rate and all own multiple properties... so you wanna get the housing market moving forward - hello?

Fed Up with Uncle Sam: (October 22, 2009 10:09am)

No more FTHB credit extension; too much govt. influence is distorting economic reality. I'm really surprised you guys are pushing this.

Lender: (October 22, 2009 10:05am)

Market News: Can we say bye bye to the HVCC? The House Financial Services Committee just past an amendment to the new Consumer Financial Protection Act to sunset the HVCC. We have Rep. Gary Miller to thank who offered the amendment and was past by a voice vote. So who knows what will happen, but I would not break out the party punch bowl just yet. Link on CNBC http://www.cnbc.com/id/33431712.

Starving Appraiser: (October 22, 2009 9:54am)

THANKS Bri & Support. We do LOVE you guys, even if we don't always agree or get along...obviously as we keep coming back. I'll try the modem reset a.s.a.p & let you know if it doesn't work. >>> @ News I can vue, although way off subject I'm sure ...30+ politicians think gang rape by co-workers & false imprisonment by employers shouldn't be punishable...WTH!!! And, BTW, just in case u didn't know, there is NO price fixing or collusion in Healthcare. These items got my dander up.

Frank Garay: (October 22, 2009 9:48am)

The reason we're asking for that stuff is it helps us trouble shoot the problem. So please, if you're having trouble, let us know as much detail as possible. Sorry for the inconvenience for the details, but that's what we need to fix it.

brian tbws: (October 22, 2009 9:45am)

Hi Starving appraiser. It's your blog and we're committed to leaving it to you guys. We'll win some and lose some, but as long as its honest it stays.

TBWS Support: (October 22, 2009 9:41am)

The Daily Video Player is tested (successfully) on IE7, IE8 and Firefox on Windows (XP, Vista), Safari and Firefox on OS X (10.4, 10.5,10.6), and Firefox on Linux (Ubuntu, RedHat). Yes, we did change to a new streaming server on October 4th. However every PC is going to be different even if they have the same software installed. We understand this can be a frustrating process but since we don't have direct access to your computer environment and we can not duplicate your problem on our network machines, we will do our best to provide suggestions and support.

Starving Appraiser: (October 22, 2009 9:37am)

Interesting too, I think, that I didn't get a reply until today when I cc'd Frank on my msg. Hope they're getting the IT support they pd for. I know F & B doesn't want us discussing the IT probs on the blog, but not being able to view the video makes it difficult to discuss it's content.

Starving Appraiser: (October 22, 2009 9:32am)

I'm w/mikeP on the viewing probs. I'm told it's my ISP & to restart my Comcast modem, which I will give a try. Maybe F & B should call Best Buy's "Geek Squad". BB is the only eqpmnt retailer I know that's pushing Fire Fox, but I could be wrong since I can't afford to even shop for new eqpmnt right now. Maybe can if I get one of those tarp funded sba loans, hhhmmm. >>> Any thoughts on the FHA repair posts!!!

mikepinter: (October 22, 2009 9:10am)

For God' Sake! Stop asking all of the people who can't view the videos for the past week what version of IE we are using! Obviously something at TBWS changed last week, just let us know what it was so we can tell our IT guys. The problem is not with us!

Kill Credit Scores: (October 22, 2009 9:01am)

I'm hearing way too much reference to higher or lower credit scores being the answer to every solution and problem. Do a little research on what comprises a credit score. Do you realize only 35% is based on your payment history? 65% of your score is based on things that have nothing to do whether your payments are made on time. Shouldn't that be all we care about? Just had a client with a 619 credit score who has no lates or collections. Perfect credit. She will be put thru the ringer because of a score that was never intended to be used for mortgage lending. All the following items decrease your score: shopping for credit, carrying low limit credit cards or even closing out credit lines with high rates of interest. These scores were developed mostly so credit card companies could decided who they wanted to market to. Credit scores are not the answer they are the problem! I am speaking with a US senator regarding this problem I suggest you do the same.

SF Big Dawg: (October 22, 2009 8:51am)

It is obvious "Dog n the broker" is probably not even a banker. I can act in both capacities and agree that there are MANY times it is in the best interest of the borrower for me to go the broker route. As far as it leaning to where the broker is gone you might want to get educated in your own industry as Fannie is offering warehouse lines to large NON BANK institutions so know your facts. Is it "in the customers best interest" that a large bank supposedly the one who represents America is charging someone such a high rate that I don't even have it on my rate sheet? For real they were half a point higher and that was beyond where it would pay me 3! We all need competition and we also need to have a system that forces the banks to be competitive. If you think that the system is tied up now go straight to where the banks control it. That same bank in America is 90 days for a purchase. If that person is an order taker (did I say that?)what are your rates today? Good work F&B!!!

Starving Appraiser: (October 22, 2009 8:50am)

F & B bashers, "U R Overweight & Go Shopping". As stated, if u don't like their looks, FEEL FREE TO GO AWAY. As Momma always sd "if U don't have something nice to say...." U know the rest. I bet your Moms would be so proud!!! >>> Still viewing probs here as well, just sent status request on my msg submitted Monday, but asking for addition of text link for video content. Tried Firefox & AFP is up-2-date. We'll see. >>> FHA REPAIRS ARE part of the apprsr site visit responsibilities... FHA/VA/RD says "Property must be 1-SAFE, 2-SANITARY, 3-SOUND". Apprsrs not fullfilling this responsibility make it very hard on those of us that do. Remember the VC SHEET??? Just because they don't utilize the form any longer doesn't mean they removed the requirement. TAKE A FHA CLASS if you don't agree!!!

Frank @ TBWS: (October 22, 2009 8:50am)

For the record. I honestly believe that any broker better have a banking capabilities right now. It would be irresponsible not to. I don't think broker is going away, but I do think it is morphing into a hybrid situation. The broker I work for has multiple banking lines, and we use them. I think we still need the ability to broker as usual, but we absolutely need to have the banking capabilities as well in order to attack this brave new world we're going into. Broker won't die, because at some point it's just to expensive to keep an LO for the big banks. Happy Banker Girls post proves that. Brokering is outsourcing and outsourcing is always cheaper and more efficient. So we'll still be here, but things are a-changing. If you don't have banking ability in your brokerage.. you'd better get it or find a broker that has it.

bman and the lowest rates: (October 22, 2009 8:48am)

wow. get back to work people. all this chatter against "dog" and his naive comments is not making anyone any $$. he is a fat lazy incompetent employee at some bank who probably has no idea how to prequal a borrower. i used to work with his type, they sit in their cubes with their wrinkled shirts and improperly tied ties, wishing they had the courage to work "commish only" and make real money. he's a slacker with very little knowledge of an industry he works in. im willing to bet he'll be waving at incoming customers at Walmart within the next month or two. "Dog", send me your referrals, you lazy cog. i'll get the loans closed in half the time and at a lower rate than your bank can offer. for your efforts, i'll give you shiny objects for you to stare at and some cookies.

Rob in AZ: (October 22, 2009 8:46am)

cluelessdad: you're absolutely right. Before the "meltdown" all loans were running approximately 2 - 3% default, all FHA were 5% and DPA-funded FHA were 20%.

clulessdad: (October 22, 2009 8:42am)

Didn't DPA programs have 4 times the rate of default? I personally don't think that we should have a program where default rates are that high. No sense taking a current foreclosure and creating a new one in 6 months.

SJ Banker: (October 22, 2009 8:42am)

Guys I am with dogn on this one. We need to be proactive and look for alternate sources (direct lender) for our loans. You can easily hook up with a lender that has a good broker lender list. then stuff you can't bank in house you broker it out. It is a sweet deal. We all need to think outside the box during these times. As long as you don't go with the big three, bofa, wells, citi, of course.

Happy: (October 22, 2009 8:33am)

Keep the faith one and all. As things change they will come back. We are going back to the Gold Standard. The dollar no longer used as the measuring stick. Oil and Gold will be considered the worls's measuring stick. And Finally the biggest tip of the day is look into Carbon Credits - educate yourself. This is going to be another huge commodity in this GREEN driven world.

Clulessdad: (October 22, 2009 8:32am)

tiryan-that is appraisal E&O? or brokers E&O?

Sunny: (October 22, 2009 8:26am)

Hey dog n the broker dude,Why don't you get your industry news elsewhere? Because you can't.We know that and you know that.Frank and Brian get up at the crack of dawn, are working their tales off on the HVCC petition (that affects EVERYONE - especially consumers, and have great sales tips for everyone.You know they are brokers and still you bash. What I say to you is spend your time between waiting for clients to walk in the bank door -yawn, doing something productive with your time rather than bashing these guys.Brokers are NOT going away. There are TOO MANY entrepreneurs in this county that will not let this happen - and I am one of them. I assure you - YOU do not know, what you do not know. What I know for 100% surety is that banks will NOT be the only lending institions left standing. MONEY talks and when the market wants to purchase subprime, stated,loans brokered by a third party because they are performing and create a strong addition to their porfolio- your 401k :)

James the Appraiser: (October 22, 2009 8:24am)

GREAT - now the underwriters are just going to be asking even more stupid questions of us appraisers so they can CYA

tiryan: (October 22, 2009 8:23am)

Here is something interesting off the subject. Our E&O policy will not cover any loan with a score of 640 or less, a loan of greater then 90% LTV or a housing ratio of greater than 28%. Well no point in keeping E&O insurance BETTER check your policies..

Rob in AZ: (October 22, 2009 8:22am)

It is my opinion that the $8000 tax credit is bad, DPAs are worse. (Yes I am aware both have helped me in the short-term--I have to offer what my competitors do). Remember Cash for Clunkers? As soon as it expired, auto sales dropped off a cliff. Home sales will see the same effect. DPAs are a circumvention of the rules. People sense that the DPA is a "shell game" that everyone--the Lender, the Agents, the Seller, the FHA--is accepting. If you want 100% Financing, do 100% Financing, price in the risk in the MIP and Underwriting Guidelines, and move on. This would have the same positive effect for Buyers but without the price inflation and without the skewed risk inherent in DPAs...

Lender Who Knows Better: (October 22, 2009 8:17am)

Dog N Broker: You are so full of it...I still destroy banks on Rate, Fees, turn around time and service...I lost a loan to BofA even though I was better by .50 in rate with SAME fees...Why? They paid a desk rent fee to the Real Estate agent who convinced the buyer they would lose the home if escrow did not close in 45 days. I guranteed a 30 day close...It took BofA 58 days.

loaner55: (October 22, 2009 8:14am)

Dod'n The Broker - What an ass! The biggest thing that separates a Banker from a Broker is their ability to shortcut the process. I know both sides well and Bankers are playing by different rules right now....for now....but it will catch up with them.Every single time I go up against a Banker I can beat the snot out of them. So what is good for the consumer? What jerks your guys chains is we can make a point or even 2 points on a deal and give the customer a great rate. You guys make 30 or 40 bp's so you have to add junk fees in some way so you can afford to pay for that apartment your renting. Where did all the subprime guys go when the business collapsed...to the banks? You guys suck.

MortgageAngel: (October 22, 2009 8:10am)

Thrilled to be a BRANKER-GAL!!!: Ditto Ditto Ditto!

Dog'n the Broker: (October 22, 2009 8:10am)

I do have to admit that I am a total idiot and that I have no clue how the real world operates. My comment about 'anyone can go in to a bank and get a loan' was really dumb. It is true that I am the first one to step up to have my anus stretched because, frankly I like it, and that is how I got my position at the bank I work for. Yes, I have to come clean and tell you all that I AM a banker who is tired of being beat out by mortgage brokers with better products, better service, and a lower true cost to the consumer. I deep down WISH I had the skill to be a broker and didn't have to participate in the banking world's old-boys-club to try and work my way to the top. Seems like just yesterday I was taking deposits at the counter. Some people call me the Wizard of OZ Scarecrow; "If I only had a brain"

San Diego Loan Guy: (October 22, 2009 8:06am)

I bet Dog N drives a Prius and has Obama stickers all over it....

Viewing Problems?: (October 22, 2009 8:00am)

if you're having trouble viewing the video please send an email to support@thinkbigworksmall.com and tell us what operation system you have,and what browser you are using. Please be specific.. IE6, IE7, Fire Fox.

GOD: (October 22, 2009 7:59am)

I can't believe you guys are taking Dog'n the Broker seriously. I'm pretty sure he's the AI guy who keeps coming on and trying to stir stuff up. Divide & Conquer

SJ Banker: (October 22, 2009 7:53am)

Ex-Wells Fargo--- That was 3 years ago... and yes that was the case. BUT TODAY is different. I was with a broker for the 7 years and switched to a lender 2 years ago in order to survive all this crap. Today, I am banking more than double the volume. And yes the split is not as great but I am not complaining since I get all the support. My own processor, Loan Scenario desk, you name it. oh by the way I also have full medical/dental for my family, 401k, profit sharing, materials expense reimbursement, and more. This lender even pays for my building lease. With all the perks, it almost seems like I am at 100% commission. You know you can't beat that. And the best part is that I can fund to the true letter of FHA 4155. 4155 is our guide, which means no overlays. NONE!!! Tell me that is not sweet..... Direct Lender ALL the way baby.

Seriously Speaking: (October 22, 2009 7:43am)

Presummed innocent? Yes we are SUPPOSED to have that but also know in this case against Lend America they were already noticed and placed on HUD's lender watch list so maybe not so innocent, eh????

Brokers...the most dominant force in mortgage lending...: (October 22, 2009 7:40am)

Dog'n the Broker- I am sorry that it sounds like you or a friend had a bad experience with a broker. I was a banker before a broker and worked at a big bank prior to that. When I left the big bank the "experienced, well trained person, " that replaced me... The head teller. I am sure she could use her experience on different ways to change a twenty to helping a client evaluate a loan program. PS I still get calls from ex-clients who are disappointed by her service. Brokers have more options than bankers... period. There were a few bad apples, but they were typically confined to sub-prime shops and most of them are out of business now. The consumer has started shopping more and more and our rates are just as competitive if not better than a bank. That same local bank that is an ethical pillar of society is now encouraging their LO's to sell interest only ARMs, because their SRP is higher... interesting. Don't throw out an industry because of the folks that are now out of business.

TheFyouSay: (October 22, 2009 7:33am)

The chroma Key on Brians shirt is great! Custom TBWS shirts for everyone!!!

tech challenged: (October 22, 2009 7:31am)

i haven't been able to get the video to download in a week or more... any hints?

Mark L: (October 22, 2009 7:29am)

Cyn in Miami - Dont let Dog'n the Broker get you down! This guy is clueless. I have been both a banker and a broker over the last 20 years, and prefer being a broker by far. What loan originator is better by offering only the products of one company to his prospects? As brokers, we can truly find the best products for our prospects because we are not connected to any one lender. While you and I are out originating loans, he is sitting at his desk waiting for the phone to ring and thinking up stupid things to say on the TBWS blog. He wishes he knew what he was talking about!

Thrilled to be a BRANKER-GAL!!!: (October 22, 2009 7:20am)

I do not understand the hostility that bank LO's have toware brokers. We all sold the same products these past 5 years. Difference being if you were a broker YOU made out like a bandit but if you worked for a bank your company did. If you think brokerage is dead, read the loan forums over in rate alert. There are hundreds of profesionals helping one another sourcing and saving loans every day and doing very good things for their clients. Overall an extremely generous professional group of people. Honest sourcing is possible if you work for a bank who insists you use "inhouse" lines. The company I work for banks but they very freely encourage brokerage if it is best for the consumer. And if brokerage dies (which I strongly suspect it will not) I can bank with in house lines if need be with the same great company. And the new GFE is NOT against the broker. My company hosted a webinar regarding the upcomming changes and I LIKE it.

SellHouseNYdotcom: (October 22, 2009 7:16am)

It's the home inspectors job to find needed repairs. if it's not something obvious, the appraiser is probably going to miss, all they do is give a opinion of value of the home. they are not contractors or trained home inspectors.

Frank: (October 22, 2009 7:11am)

mortgage guy - if you get the free version of Rate Alert you can join the forums and get some advise there...

QueenofMelanieisms: (October 22, 2009 7:10am)

To Dog 'N The Broker..... You are a "typical" banker with a banker mentality. Brokers do look towards getting their commission, just the same as the bankers have their hands out every week getting their paychecks. As with any kind of industry there are good and bad so don't assume that all mortgage brokers are crooks. In fact, the banks have not been getting a lot of good press lately either so you might want to ease up on the finger pointing. I have been a banker and a broker and I can assure you that as a broker I have had to be more personally responsible for my actions and have had to take it upon myself to make sure that I know the every changing regs. Most bankers wouldn't know what reg z was if it bit them in their cushy butt. Why???? Becuase they don't have to. They are not regulated the same as we are and never have to take personal responsibility for their actions.

Frank: (October 22, 2009 7:07am)

BigEasy - We also took a look at Lend Americas HUD default rates and they are really good.. no big issue there... I think someone has a bone to pick with these guys.. "She's a Witch!"

mortgage Guy: (October 22, 2009 7:06am)

this does not have anything to do with todays video. Has anyone had luck latley challenging value on an appraisal>

Oregon app/broker: (October 22, 2009 7:06am)

HUD posted fines of $8,000 - $10,000 to appraisers for omissions of required repairs several years ago.

TX 201: (October 22, 2009 7:06am)

Dear Doggin' My FHA scorecard shows I have a 1.38% default rate on my loans. I consistently beat the local banks and the big players on rates and service. That anal stretching you refer to is very familiar to CW customers, many who were put into first and seconds for the benefit of a higher commission for the LO. Brokers going away just opens the door for the banks to increase profits by being free to charge more due to less competition. Let me guess, you work for a bank and are drinking the kool-aid.

TheBigEasy: (October 22, 2009 7:02am)

Just In: A federal judge denied a Justice Department request to issue a temporary restraining order against Ideal Mortgage Bankers, parent company of Lend America, that would have prevented the lender from originating Federal Housing Administration (FHA)-insured loans.

Real Broker: (October 22, 2009 7:01am)

I've been having great success when someone is considering their bank over my brokerage services. I simply tell them that in today's market you need to work a properly trained professional. As a broker I had to pass a background check, I am licensed at the state and now federal level, and I have to participate in continuing education to keep those licenses. Bank loan officers typically have to fill out an employment application and they're on the clock. Simply put I'm an educated professional and the bank loan officers are employees. Seems they'd rather work with someone that had to work for their career.. Works for me.

GOD: (October 22, 2009 6:59am)

Does anyone know the latest on Builder's giving extra incentives to use their in-house lender? I'd read that was supposed to go away a long time ago, but I'm still running into it.

JOER: (October 22, 2009 6:56am)

What is the latest on YSP going away on 1-1-2010 for the Broker system?

Be A Lender: (October 22, 2009 6:52am)

...and the moral of the story is... Friends don't let friends use Brokers :)

Look in the mirror.: (October 22, 2009 6:50am)

Dear Dog'n the Broker. Tell my very loyal clients that brokers r antiquated and they will be very unhappy. I have had many people come to me after shopping at a bank first because I have gotten them better rates and better loan products. Hv a client that did his last loan directly with the bank n has cried to me ever since becuz he got screwed. I can't fix his loan, his bank told him they could. 5 months later the deal is falling apart. He has great credit, paying down his mortgage to fit new conforming limits, no other debt and the income. Going directly to a bank doesn't mean the LOs know what they are doing. Some do, some don't. Same as when you go to a broker. But brokers have to be more knowledgeable to survive. We don't get a base salary and benefits, and unlike bank LOs, we r licensed and take cont ed. Of course we are interested in our commissions, like everyone we deserve 2 b paid 4 what we do. I m sure you aren't working for free.

Smart LO: (October 22, 2009 6:46am)

I could be dyslexic, BUT, isn't it DPA, not DAP? Just sayin'... and there are MANY middle class americans (whom we are fighting for) thta can pay their rent, raise their children, enjoy a bit of life and are unable to put money aside for a down payment. The DPA helps them become a homeowner and get that American Dream we all boast about. It is up to a SMART LO to look at a file and see the problems and move on with the good ones. I say YES to DPA. And minimum FICO.... needs to stay at 620. All those LO's that I take over their loans for good borrowers because they don't know what they are doing? Go away. Go work for a bank. Doesn't take brains to push a loan there.

Thank Goodness: (October 22, 2009 6:42am)

Yeah! Finally the blog has some meaning to it that I can relate to! Like a breath of fresh air.

Underwriter Story: (October 22, 2009 6:40am)

It was covered by housingwire.com as well.

GOD: (October 22, 2009 6:38am)

The Underwriter story was on yesterday's housingmatrix.com

Chuck: (October 22, 2009 6:36am)

Dog'n The Broker. LOL OK you go to the bank. Wait 3 months to get your loan done. Sit on hold for hours. Never meet your loan officer. Never develop a relationship for life with a quality broker who will look out for your financial needs while of course earning a fair living for doing so. I can beat your banks rates and fees any day of the week, and get it done in half the time. You obviously met a bad broker and are bitter. We're not all that way.

Ex-Wells Fargo Banker: (October 22, 2009 6:36am)

Dog'n The Broker - That's funny... I was a banker for over 3 years and all they ever cared about is how much commission they could make. The even gave us incentives to do subprime loans for a bigger "bonus" commission. They were always completely focused on how much money you could make from the top down. So.. pipe down. If brokers go away... that means I'll be sitting in the cube next to you kicking your ass, so careful what you wish for.

GOD: (October 22, 2009 6:35am)

I'm with Big Mac on the Seller funded down payment assistance programs. With 3.5-5% downpayments available I don't see the need for any kind of down payment assistance. If people can't come up with the minimal money required to get into a home nowadays then maybe, just maybe, they don't want a home badly enough to make the payments on it regularly if they were to get into it. I'm reminded of the FAH 235 programs of yesteryear where it was cheaper to get into a home than rent an apartment so people moved in & out of them like they did an apartment and we had massive amounts of foreclosures.

Cyn in Miami: (October 22, 2009 6:34am)

Can someone ban "Dog n the broker" from this blog? I've been a banker AND a broker and NOOOO everyone can not walk in to a bank and get a loan. You MIGHT get one if you open a checking or savings account but in the end....maybe not. In the larger institutions, its MORE about the paycheck and the numbers. Yes, we all want to make a payday, but in my office, clients have a name - in a bank they're only a loan number. DOG - get a bone to gnaw on and stay off this blog

Chuck: (October 22, 2009 6:31am)

Dead on St.Pauly Girl. I couldn't agree more

Viewing Problems?: (October 22, 2009 6:31am)

if you're having trouble viewing the video please send an email to support@thinkbigworksmall.com and tell us what operation system you have,and what browser you are using. Please be specific.. IE6, IE7, Fire Fox...

Joe: (October 22, 2009 6:23am)

Guy's where do you think all the New Jobs are being created. Big brother of course. All these new rules and regulations takes a lot of people that us tax payers pay for, but that's OK because now there is less unemployeement. The good news is we have to train these bozo's because no one in government knows how to do their jobs anyway. It's nice to have someone looking in to our business or any business that have no clue as to what we do or what they are doing. More good news is that I am paying less in taxes because of less closed loans. Take the Uncle Sam!

Dog'n The Broker: (October 22, 2009 6:22am)

The mortgage broker is an antiquated entity. Anyone who uses a mortgage broker to obtain a loan deserves the anal stretching they receive. Any one can walk into a bank and get a loan. Even if their credit score is low and the loan dynamics are tough. A mortgage broker complicates, confuses and exacerbates problems because they are only interested in getting a commission check. The mortgage business is on it's way out. Pay attention and read the signs. It would be easier to shift the business model than to fight the inevitable. "Ban the Broker" ! It's coming. Thank God.

AFESCO: (October 22, 2009 6:07am)

The fraud of FTHB is on ACCOUNTANTS. They are the ones that submit the paperwork for the tax credit.

SteveH-KC: (October 22, 2009 5:58am)

Ditto on DPA! How hard is this to put in a program that costs Zero to the Taxpayer! Sad there are no smart guys in the room in the room in W..DC and since there is no one to bribe or payoff on this program then it won't fly. Thanks Frank for the Cube story! Savvy!It a busy world when you part of the working poor. You guys are like having a personal staff that helps keep us on top of it.

mikepinter: (October 22, 2009 5:51am)

I haven't been able to view the videos for about a week. I have the latest version of Flash player.

Hammer: (October 22, 2009 5:51am)

@Nuke em - ROFLMAO, yup, about 75 times special....I actually created a rule for the day to send any TBWS email to Deleted, ROFL.

Nuke 'em 'til they Glow: (October 22, 2009 5:50am)

I feel really special after yesterday! Scores of times special... scores of times special... er ... scores of times special... er ... scores of times special... er ...scores of times special... er ...scores of times special... er ...scores of times special... er ...

St Pauly Girl: (October 22, 2009 5:49am)

On the video poll I selected the going after underwriters is a Bad Idea. But not for the reason given in the poll. Not because the'll be more cautious; but because an underwriter is an employee of the lender approving files based on the lender guidelines. To penalize them is the same as what has been done to brokers....blamed for defaults when the guidelines were loosely ridiculous. The company should take the fall, not the individual underwriter; uless that underwriter can be found to have participated in fraud.

Hammer: (October 22, 2009 5:45am)

@sc - try to update your Adobe Flash Player, that is what actually plays it.

sc: (October 22, 2009 5:41am)

Our video will not play. Are you having any problems from other people? This happened several weeks ago for a few days and then just started working

St Pauly Girl: (October 22, 2009 5:37am)

Yes, yes, yes....DAPs are far better for market recovery & guess what....We don't continue contributing to our country's negative debt position; AND we don't pay more in taxes to fund it! Seems so simple

Anonymous: (October 22, 2009 5:23am)

AMEN guys! LESS government and more free market.

Flynn: (October 22, 2009 5:23am)

Bring back the DAPs....660 Credit score or above with 3 months reserves, if they have above a 740 no reserves, the default rates will be controlled with regulation

Hammer: (October 22, 2009 5:11am)

Troll - (aka Go Shopping, You guys are Over Weight)----if you don't like these guys so much, move the f*#k along. Trolls like you should be turned into toilet paper, because all you're good for is wiping my arse. Add something of value, or even a crummy opinion about the subject matter at hand, and stop attacking the hosts. You don't walk into someone's house and take a dump on their coffee table........moron.

Hammer: (October 22, 2009 5:08am)

I was referred some borrowers - I told them that they were in over their heads, and weren't ready to buy a home. You know the scenario, credit issues showing they don't handle money well, a weak sub 620 score, no reserves, borrowing the downpayment, big increase in payment (showing that even on a lower payment they can't save a dime), "gifted" downpayment.....Anyway, I told them no. No, I wouldn't help them, and no, they shouldn't buy a house. They are foreclosure waiting to happen. NOT LEND AMERICA!!! They gave them the loan (with some creative underwriting for sure), and charged them max income. Now, I don't blame them for charging max income and gouging the borrower, because it was only 2.5pts on the front, with no need to show a YSP on the back because they were bankering it, but the rate paid me from my "dirty FHA scores" lender about 3.... AND THE LOAN OFFICER WAS AN IDIOT. Let Lend America burn baby, I see's me a witch!!!!

Hanger: (October 22, 2009 4:55am)

GO Phillies, Beat The YANKEES in 5 games

Sam Wax, Tampa, FL : (October 22, 2009 4:50am)

I disagree with your take on the seller 'contribution' programs. There was an incredible amount of fraud on those loans. That is not the solution to the issues in the housing market. What would help increase the purchase market, in my opinion, is to get banks like Bank of America, Wells, Suntrust, Citi and others to show more leniency against deficiency judgments and streamline the modification and short sale processes. I work within a law office and the banks, who we just bailed out, continuously kill deals with their turn around times. Speed up turn around times on short sales and create a government subsidy to the banks on deficiencies and you'll see a big improvement in the mortgage business.

Philly Appraiser: (October 22, 2009 4:30am)

can someone post the lendamerica link to where the UW's may be getting fined. I cant seem to find it.

Go shopping: (October 22, 2009 4:26am)

Frank do you have another shirt? You wear the same huge thing everytime.

You guys are Over Weight: (October 22, 2009 4:23am)

Dudes talk less,eat less, workout more and loss some weight. Or just die of a heart attack within 5 years!

Big Mac: (October 22, 2009 4:20am)

C'mon guys, the seller funded down payment assistance is junk! Blus sky - a shell game. Infact it is another layer of cost and effort to close a loan. Wonder what the execs of these "non-profits make? Seller funded DAP programs are just 100% lending in disguise. We need 100% it for qualified borrowers. Recognize that fact, design the criteria intelligently, underwrite it appropriately and lets go sell loans to those that qualify. The DAP tricks the AUS computers as to the real substance of the borrower's circumstances. Do you have information on DAP loans and how they perform relative to loans where the borrowers put there own grease in the deal? Remeber we need strong FHA programs to be viable in the long run. Peace - Out!