The Fat Cat Banker Showdown - 12.15.09
Obama lays down the feather hammer to the bankers. More news from the FDIC about bank failures. Citi looking to get their bonuses back. Sales tip from Dan Kennedy.
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tbwsfan: (December 16, 2009 8:47am)
I agree with prior post -
love the show....but the "having a bad day" bit takes away from your great show and great message. cut it out, thanks. BACK TO THE BASICS!
The goofy stuff is really off message big time. Thanks for all the great work you do guys!
joecolorado: (December 15, 2009 3:45pm)
Its also your job to inform the appraiser why your sales PRICE is set at that particular level.Dont you talk to the appraiser? or do you just expect him or her to assimilate that information out of thin air?I talk to EVERYONE that has been in that house.EVERYONE..I am only in the home for a relatively short time and I need as much information from anywhere that will permit me do do a better job to try and ensure that the investors' money is safe.Its your job to help see that information which you apparently have(& the appraiser doesn't)gets given to the appraiser.You are not influencing VALUE,you are just doing your job to ensure that S/He is considering all the facts.If the appraiser is reluctant to take the information then that shows his/her insecurity and illustrates the level of his/her experience.Dont just dismiss him/her as an idiot, report them to the State, let the confinm that s/he is an idiot by sanctioning them for incompetence.
joecolorado: (December 15, 2009 3:36pm)
everyone got tarred with the same brush on THAT statement so lets keep on going in that vein,The problem with people that have been in several properties that are untrained as an appraiser, they dont know what to look for in a building and consequently make our job more difficult by making outlandish statements which are then reinforced by a professional that has no right to discredit ANYONE else's profession, but does anyway.. Just do YOUR job and do it well, and leave the valuing to us.If you have a problem with an appraisal inform the State...that's why they are there, DONT just let the matter rest, inform someone that needs to be aware that there is an idiot out there doing a crap job.It makes it harder for ALL of us..you included, to retain credibility when problems like this go unresolved.
Interesting: (December 15, 2009 2:57pm)
dd-I can see why you didn't make it as an appraiser...
dd: (December 15, 2009 2:33pm)
Having been an appraiser and now a realtor, I will tell you that what appriasers don't know about what and where they are appraising is amazing! In an area where I practice, you have to know the school areas, what streets demarcate "good" or "bad" areas in buyers minds, what they think pools and views are worth and what the buyers are looking for . Operating in a vaccum is not appropriate. I see appraisers making up the wildest stories to try and "figure out" differences in prices. I will go with value a buyer who has looked at 10 to 50 properties has determined for the property he chooses. The buyer has been in the properties, the appraiser hasn't! Quite frankly, with the amount of information available to the public today about real estate, appraisals will not protect the consumer or the lender. Buyer williness to repay will. I'd rather see a note from the buyer's pastor attesting to the ethical character of the borrower. That and debt repayment history will tell the story.
jglynn: (December 15, 2009 1:38pm)
dude. DUDE! That bungie jump! holy crap!
GMS: (December 15, 2009 1:19pm)
The ironic thing is the same people that cried out in the 70's/80's for more products to help the lower income and the people at lower credit levels "WE KNOW IT IS HIGHER RISK AND THE COST WILL BE MORE", have screamed in the 90's/2000' that they are being taken advantage of. So the govt puts law in place to bring the return on these products down, closer to prime borrowers. And then the bottom falls out and its the mortgage industries fault. The risk did not match the reward, so the pools did not have the return to cover the greater loss. OH, and the AAA ratings these MBS received was the small business' fault also, so lets give the insurance companies federal bailout money also.....
MortgageAngel: (December 15, 2009 1:18pm)
Just like what happened with the S&L crisis, the Fed will make money on this too. Not that it matters. All profits are surrendered to the Treasury. And not that thay matters either, since any profits go back where all fiat currency comes from - thin air.
GMS: (December 15, 2009 1:17pm)
LinDC is correct. While they smile on TV and scold the banks for not lending, they quitely are putting the small lenders and brokers out of business. And with it will go competition that the free market system would create.
MortgageAngel: (December 15, 2009 1:11pm)
Thankfully, a few people in the media that voted for Obama are calling the spade a spade. MATT TAIBBI of ROLLING STONE Magazine is one of those people. Taibbi cuts right to the chase exposing the timeline and dubious connections Obama has to the Wall Street. Read: OBAMA'S BIG SELL OUT here http://www.rollingstone.com/politics/story/31234647/obamas_big_sellout/print
LivingInDC: (December 15, 2009 12:49pm)
Free Nobel Peace Prize with the purchase of a shrimp basket. Mr. President along with the "Fat Cats" are going to eliminate the Mortgage Banker position as we know it. 36 months from now a "Loan Officer" is going to be a 50k saleried position at a big bank. “I will prepare and the opportunity will come…” Abraham Lincoln
LivingInDC: (December 15, 2009 12:11pm)
Actually Marion Barry was not with a hooker when he was caught smoking crack, it was his "girlfriend" but she is the one who set him up (remember the catch phrase (The bit*h set me up?). He is also not the same person who is in the HoR who voted for the Bill, that would be Robert Marion Berry. Even though you were incredibly wrong it did make great material for that portion of the show though :)
GMS: (December 15, 2009 11:51am)
RE: Brokers to Correspondent comment.
Guys, you are correct, they are making it difficult for brokers so those who can will move to lender. BUT FYI, most companies are requiring a minimum NET WORTH of 1 Million Dollars to be a lender and FHA is trying to change to a minimum NET WORTH of 2.5 Million. Yes Dr. Evil, 2.5 MILLION DOLLARS. Which would make it impossible for small lenders. Which in turn leaves nothing but the big companies left to lend. HMMMMMM, Fat Cat Bankers get govt money bailout, then help from govt to push out the small guy. Ah this seems fair, never mind.....
Appraiser in CA: (December 15, 2009 11:04am)
love the show....but the "having a bad day" bit takes away from your great show and great message. cut it out, thanks. BACK TO THE BASICS!
The Dreammaker: (December 15, 2009 10:30am)
4/4 (This space fills up quick!)
As to eliminating surprises at closing, the new GFE may or may not, because as proposed, it does not show the consumer how much will be required at closing or how much the payment will be!
Let's get this revamped before we have yet another out of control government fiasco!
My email is [email protected] if you would like to comment or get a better version of the letter!
The Dreammaker: (December 15, 2009 10:28am)
3/4?
This new GFE is so outlandish that I can't believe that anyone that was familiar with the business was actually involved with it's design, and thinking of the millions of dollars wasted on this document is unbelievable and quite frankly an embarrassment.
Tom Black of Black, Mann & Ghram recommended using a form similar to the one page "old" GFE, but take out GFE and use it as a "worksheet"! While this may work, why not either leave the current GFE in place or make design changes that actually work and are meaningful to the consumer!
The purpose of all these changes is supposedly for transparence, and that's good for the mortgage companies like mine that play by the rules and have played by the rules of actually showing the consumer upfront the charges and payment! This GFE as proposed will not do that, and we will need to construct another "behind the scenes" form to show the consumer what we already show them!
TheDreammaker: (December 15, 2009 10:26am)
2/3
. Everyone in the business knows that there is actually a lot more that constitutes a "payment", including Property Taxes, Property Insurance & HOA Fees. These items can add hundreds to the "payment", yet is not addressed in the GFE.
This GFE also does not address how much money the consumer will be required to take to closing. In fact it makes it even worse by coming up with a one line amount on P. 2 called "Settlement Charges"! The consumer will have no idea what this number means, and unfortunately, it will have NO meaning, because the GFE lumps into this number amounts that are historically paid by the seller such as "Title Settlement Charges and Owners Title Policy", which are both historically paid by the seller.
The GFE does not take into account the down payment, or any amounts paid upfront such as Earnest Money and amounts that the Seller will pay on behalf of the buyer in a negotiated contract.
TheDreammaker: (December 15, 2009 10:24am)
This is a letter I wrote and sent to Sen John Cornyn--Maybe if we all used this as a template to each of our "rulers", something might at least get looked at!
Letter To Sen Cornyn
Help please! I am a responsible Mortgage Broker in Houston Texas. My company, Texas Supreme Mortgage, Inc. has been in business since July 23rd, 1993, and I have been in direct lending since 1989, and Real Estate since 1978!
I'm not saying I've seen it all, but I've seen a lot of "it"!
This new GFE as proposed and being rammed thru is completely and utterly a farce for the consumer. The two items that consumers wants to know at application are 1) How much is my payment, and 2) How much to move in?
This GFE not only does not answer either of those questions, it creates a situation that is troublesome for the consumer. The only area where the GFE even addresses a payment only details Principal, Interest and Mortgage Insurance on P.1.
Cut the Bad Day Videos: (December 15, 2009 10:17am)
Guys: I have liked your updates for some time, but the "bad day" videos detract from your credibility - especially today's. Did that person die?! Are you encouraging people to laugh at this?! I cannot forward this kind of stuff to people I know and respect.
Is it too late?: (December 15, 2009 9:46am)
Is it too late to vote for the old white guy? suckers got sold by a silver tongued community organizer
Frank Garay: (December 15, 2009 9:42am)
There is a video marketing workshop tomorrow.. www.tbwsvideoworkshop.com - go for it!
Smash: (December 15, 2009 8:46am)
Frank: Are you still offering your video marketing webinar? Please send me details. Thanks
Frank Garay: (December 15, 2009 8:34am)
Hey now... easy Texsa... mum's the word.
Texsa: (December 15, 2009 8:27am)
Is Frank actually Silent BOB, hmmm
Ancient Appraiser: (December 15, 2009 8:25am)
SD Appr: Sounds good but how about the lenders actually hiring a appraiser to do the review. To many lenders have some chump that knows nothing about appraising relying on misleading data (AVM's) to assess reports.
joecolorado: (December 15, 2009 8:20am)
Banks are going to do what they want,if a bad appraisal comes in, THEY DONT CARE as its someone else's problem.Their excuse is we relied on an expert licensed by the State & the expert was wrong.hvcc is not going away.I went to a meeting last night where a member of the AI was PROMOTING hvcc and advocating that ALL appraisals be carried out by appraisers designated by an association.(arrogant ass....there were 10%+/- of apps in the room that had designations and NO ONE said anything!)I am designated but I am horrified that AI is promoting the issue that forces apps into assoc's.The speaker did not care that 90% of the apps IN THE ROOM would be out of work with his advocacy.(really arrogant ass)
BoKnows: (December 15, 2009 8:18am)
The President can't be bought? Are you for real? As for No Points/No Problem, lighten up! If your agents can't handle sophomoric humor then they shouldn't be watching TBWS videos anyway! (I am all for the humor, F & B, keep it up!) For something truly stupid, enjoy this video (frat boy humor, brought to you by the British): http://www.youtube.com/watch?v=MX5x3x9MvzA
No Points No Problem: (December 15, 2009 8:15am)
To clarify my post, it's not like the stuff you're showing is a quick "it doesn't hurt" thing, like someone falling off a skateboard. These people look like they'll be paralyzed for life. A bit traumatic, keep it so I can get business out of this show, don't go all college frat house on me now!
God: (December 15, 2009 8:15am)
RANDOLPH it's very hard to respect the office when it is manned by someone like Osama Ben Obama. It's tough to respect an office that can be bought that easily.
Ancient Appraiser: (December 15, 2009 8:13am)
Just thinking of my boy Andrew C. in jail makes my day. It does seem that for every politician that might stand up and try and stop the insanity there are 100 against them. Term limits - no more than two and everyone walks, bring in people that really represent their constituents. Currently the only two party system we have is us against them !
No Points No Problem: (December 15, 2009 8:11am)
Hey Frank & Brian, love the show, but HATE the bad day stuff you've started recently. When I see that, I don't want to send this to my realtors anymore. CUT IT OUT!!!!
DD: (December 15, 2009 8:07am)
Now if the prez really had any guts he would have had a closed door session and really laid in on the line...like you either do the right thing with loan mods (can you say 50 year notes or more, can you say keep paying and you'll have a home.) or you'll get cram down on your bad loans that YOU BANKS made with don't ask, don't tell loans. (You think you were the military?) You banks screwed unsophisticated borrowers and the economy with your your fancy financing to create this mess. If you don't play nice, Cram down will be an executive order. I, unlike congress, cannot be bought. Now go do the right thing. Exit prez. Exit bankers to change their underwear.
SunDiegoAppr.: (December 15, 2009 8:01am)
I pray for clarity amongst our governing officials. But till then here's a clue on what to do to replace HVCC. The answer in my humble opinion is to have all lending institutions institute a policy of "mandatory desk reviews". It will snuff out all the bad appraisers and indicate which brokers are submitting bad appraisals. If this idea were to be implemented they could be prosecuting bad appraisers and brokers within a year on a large scale and the others would fly straight (if they know how) or better yet get out of the business.
ready to be pres: (December 15, 2009 7:52am)
Banks will do as they wish - love you. You are on my cabinet!
Banks will do as they wish: (December 15, 2009 7:49am)
B+ on national TV was honestly one of the most narcississtic pieces of egoticism i have ever seen, you deserve a D at the most considering your economic, political and social endavors so far. Jamie Dimon woke up this morning thinking, what a waste of a day that was going to hookerland DC to listen to our president call me a fat cat...he reminds me of a skinny kitten!
Banks will do as they wish!: (December 15, 2009 7:44am)
Honestly folks, would you listen to a president who probably has the same business and economic accumen as a college sophomore. You have him telling you to lend more and then you have Sheila Bair at the FDIC telling you to keep more reserves, you have larry Summers (head of obamas economic team) on tv saying the recession is over and then on the same day you have Bernanke say it is not over...are you kidding me. This is noise for votes and is quite frankly a joke. These banks will do as they wish and and look at Obama as someone who will spin a good yarn and will keep at arms lenght, becuase lets face it he has messing up the world of origination becuase he can trample on us becuase we have no true voice or money. Did you know the banks have more than 5 full time lobbyists for each bank and their job is to do what...yep pay and backhand whoever you need to keep things the way they are. This meeting is a joke and your bite is becomign a yawen dear president..to grade yourself as a B+ on
ready to be pres: (December 15, 2009 7:43am)
try this on for size - term limits on all Congressman and Senators - 2 terms and you are out. After you are out, your PAY also stops - no more "you get it for life" crap. Balanced budget - no more paying for $1000 hammers. Support the military as they so deserve - how about a free home! Cuomo goes to jail with Madoff. Enforce the current laws and regulations - we don't need more, just less with enforcement. Put our people to work - there is no national focus, nothing to move toward, no next big thing (we need one NOW). HVCC repealed and AMC's out of business and current owners of the AMC put in jail for violations of RESPA (marked up the cost of the appraisal report)
Seriously Speaking: (December 15, 2009 7:39am)
BTW - I am curious as to who the h*ll the 1% who voted stating they beleive the Presidential talk helped as the banks are responsive to the president LMAO! (see poll results) For real is that a joke vote or is anyone truly that stupid?
GB: (December 15, 2009 7:37am)
Frank & Brian,
Did I say "hit the ground running" or "run us in the ground"?
President Obama
ready to be pres: (December 15, 2009 7:33am)
Boknows - I agree. I'm going to start my run for Presidency. With a business mind, I can fix the US. Put people to work and this whole mess starts to fix itself. Banks and Bankers follow the same rule - ysp, safe act and all others. FAnnie and Freddie - CEO's are fired with NO PAY. Bank CEO's are to be held responsible. HVCC repealed and Cuomo goes to jail with an apple stuffed in his mouth.
Seriously Speaking: (December 15, 2009 7:30am)
Randolph - too bad that wasnt blowbama doing the bungee. Our lives would have just gotten a little breathing room. I give respect when its earned, Obama has earned nothing (except a Nobel Peace prize for... oh yeah NOTHING!) Wake up, dont be a frog in boiling water it really is getting hot and you really are being served for lunch!
BoKnows: (December 15, 2009 7:28am)
While I am no fan of BHO (who I think is bankrupting our country) I still blame BOTH sides of the aisle in Congress. With that being said, it's time for TERM LIMITS for all of them. They are all in bed with special interests; let's elect new people and give them a short rope to get in, get 'er done and then GTFO! Change? That's Change in my book (next soapbox moment-the Fair Tax but I digress).
Mark Green: (December 15, 2009 7:24am)
Wow, is that moron who bungee jumped alive? That looked pretty painful. And amusing. Brilliant show today Frank and Brian. Loved it.
Dallen: (December 15, 2009 7:08am)
Any other CA brokers out there agree with me that DRE has sold us out to the Feds??
joecolorado: (December 15, 2009 7:06am)
another thing that steams my clam, the CEO's from these banks wouldnt have been able to give ANYONE a finger if they hadnt been bailed out.....again no humble pie...These guys are not in it for the man in the street, where do you think they get the money for the bonuses?certainly not from their own pockets....There must be a class thy take in business school for losing ethics 101.
joecolorado: (December 15, 2009 7:02am)
If you think the fallout from the residential market is bad...wait to you see the fallout from the commercial market which is coming to an area near you....
Dallen: (December 15, 2009 6:59am)
I think EddieG is right! I think you guys got the wrong Marion Barry. Not that that wouldnt surprise me, the old DC Mayor would fit right in with all the tax cheats, avowed Communists and Marxist/Leninist Lefties,convicted felons and other miscreants, scroundrels and other immoral bastards that are running our beloved Nation into an Oligarchy and Socialist/Communist form of government. I been a Realtor/Mortgage Broker in California for 23 years and when I saw that the bureaucrats at DRE signed off(with no input from the licensees by the way)on this Federal takeover of our industry, I knew I would soon be out of business. There is no way some Federal Bureau is going to get info from me like, how many transactions did you do so far, how much money did you make on each one, ect,ect,ect. Just another example of Big Government out of control!!
So, DRE is threatning to suspend my license, good, go ahead,I will live and die by the founding fathers ideals of entrenpenureship and freedom!!!!!!
Texas: (December 15, 2009 6:56am)
What a low % of loans originated by the broker channel. How low was that figure again? Who would have ever thought that even 2 years ago? Correspondent lines are the way to go(if you can get them). Aligning with a large retail branch is not always the greener pasture one hears about or sees in their recruiting ads. Finding a home with a broker background and correspondent lines, yet still operating with the fundamentals of a brokerage shop is still the best bet. On another note, can you guys check on and keep us posted with the latest information about the current 30 day comment period? And what moves the Federal Reserve might be making in anticipation? Thanks.
GaryP: (December 15, 2009 6:52am)
REORealtor1, the mortgage industry is somewhat organized. However, our lobbying organizations MBA and NAMB are pretty much broke right now. We are also competing against "the big guys:" Wells, BoA, Chase, Citi and US bank. Ordinarily, you would think that our interests overlap, however, the big guys have increasegingly looked at the small brokers and mortgage bankers as the competition. They're out to recapture the market share that they lost as a result of the rise of the broker/banker. Obviously, this is not good for the industry. Do you want your clients waiting months to get a loan approved and dealing with the kind of service they will get from a "loan officer" making $8/hr. Unfortunately, their lobbyists seem to have a lot of people in Washington convinced that that kind of scenario would be a good thing.
GaryP: (December 15, 2009 6:43am)
Just like the "job summit," the "bank summit was all a bunch of smoke and mirrors. The current administration likes these kinds of high profile events to fool people into thinking that they are really doing something. I watched the media coverage on it yesterday and all that I saw come from it was the bankers agreed to "take a second look" at commercial loans that they have denied. Huh? What has changed between the time it was denied and they review it? Anyone besides me familiar with the concept of a tap dancing chicken?
RealtorSteve: (December 15, 2009 6:38am)
Despite low approval ratings and regardless of what he actually does, BHO still can fool many voters with sound bites criticizing big business.
big Mike: (December 15, 2009 6:38am)
FYI. I never in a millon years would say bulldoodoo, your computer edited me.
RealtorSteve: (December 15, 2009 6:36am)
BHO's first actions, even before taking office, were related to the unconstitutional TARP and bailout funds, seems to me. He's definitely no friend of small business, but he's going to use those funds to pay reps and senators to vote to take over more of the realm of small businesses--health care.
big Mike: (December 15, 2009 6:36am)
The President (not mine) got a lesson yesterday in money talks and bulldoodoo walks. Most of the TARP money is or has been repayed with interest. I'll bet most of the CEO's went there to politley give the president the finger and tell him he could shove is restrictions on pay up his ass.
Randolph: (December 15, 2009 6:13am)
Hey Nukem, you're a jagbag....President Obama, yep, you read correctly, he is THE PRESIDENT, so please, if you don't like the man holding the seat, you should at the very minimum RESPECT THE OFFICE!!
EddieG: (December 15, 2009 5:45am)
Hey guys, wrong Marion Barry.
Anonymous: (December 15, 2009 5:05am)
Marion Barry is not a congressman so therefore could not have voted for or against any bill. He is not even the District of Columbia's non-voting delegate to Congress.
Nuke 'em Until they Glow: (December 15, 2009 4:27am)
Hussein Obama has always been a do nothing worthless Socialist/Communist/Fascist ( you pick on any given day which applies ) So what else is new? Good point about going correspondent. Almost every LO/Broker that I know is going Retail Branch and with the new 2010 regs it's acceleratong exponentially!
REORealtor1: (December 15, 2009 4:07am)
The mortgage industry needs to get VERY organized. I am left scratching my brain trying to figure out why there is such a huge lack of organization in this industry. I hear a lot of whining but very little action. If you sit back and take it, they'll give it to you. So many of you have deals that went bad. Who is the best adovocate for change? Your consumer that had the bad experience! Are you getting them to write letters to the higher ups? You have a powerful complaint board- consumers! When these things happen, help draft a letter for them, stamped, addressed and ready to mail and ask them to sign it-send it to anyone in control in your state, to Barney to Cuomo-you should have at least 10 copies go out. THE COMPLAINTS MUST COME FROM THE CONSUMERS DIRECTLY OR NO ONE WILL LISTEN. GET INVOLVED!!! When hundreds of letters every week-FROM THE CONSUMER- are received then HVCC and all the other new miracles will be seen for what they are. Another bureaucratic mess!!
jsut saying: (December 15, 2009 3:29am)
BHO ran for office not to help the "fat cat bankers", but to help the "fatter cat unions". UAW and SEIU have NEVER been stronger. Good stuff... 
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