Video Marketing and Mortgage News Designed for Mortgage and Real Estate Sales

The Mortgage Doctor: (January 30, 2010 1:00pm)

Please note!!! ProMortgage of Claremore OHIO is in NO WAY connected to ProMortgage of Marin County, California. ProMortgage in California has NEVER had a problem with HUD or any other agency!

Lender Who Knows Better: (January 28, 2010 9:17am)

James...No you couldn't...Barney Frank and Nancy Pelosi would have crucified you for being Un- American for not providing loans to people with bad credit, low income and non-resident aliens.

James: (January 27, 2010 9:10pm)

I will take over running Fannie/Freddie, I could do the job better than the it has been handled over the past 10 years

DallasLoanGuy: (January 27, 2010 8:08pm)

Scrap Fannie/Freddie? We should scrap Barney Frank!!!

clulessdad: (January 27, 2010 7:41pm)

James-I just emailed you today's 45 day lock rates with your scenario.

James: (January 27, 2010 7:31pm)

Hello, it is $222,000, and the est of value is consurvative at $350,000

clulessdad: (January 27, 2010 7:29pm)

james-what is the loan amount?

larryw: (January 27, 2010 7:02pm)

Shut down the GSE's? Maybe. But I see them immediately being re-created as new entities but WITHOUT the bad debt. The bad debt stays in the old "shell" of a company. The new companies can now attract capital from someone besides the FED and Treasury.

James: (January 27, 2010 6:49pm)

If you are a lender I can e-mail you the Good Faith Est and you can let me know if you see any thing funny, maybe the WTBS Guys would look at it for me too, my e-mail is prattjames1960@yahoo.com

James: (January 27, 2010 6:47pm)

Hello, Yes, 1% and the LTV is 63%

vorpal bunny: (January 27, 2010 6:20pm)

@ James: Is that rate at 1% loan origination? What's the LTV? What's the lock period? I know nuttin' 'bout the lender.

James: (January 27, 2010 6:06pm)

Hello All, any one know of any thing GOOD OR BAD about American Preferred Lending in San Diego, California? I had them put together a refi app for me and got a good faith with 5.125 fix 30 year (cash out refi). Is that the best I can get, both me and my wife have a min. credit score of 777 and 779

5pence: (January 27, 2010 4:11pm)

Ezraadams : If you want the Guild to grow we need to see some action - Now. Everyone has the next best idea and I think the Guild is the best idea yet, but it'll be lost in the shuffle as our attentions are drawn to the many new "next big thing" that promises to do something to save our professions. Focus is what we need - action will get us that focus. Yeah - you LO's and brokers will love being told how much you'll make on every transaction and hearing so and so down the street will do it for half that price. Welcome to the race to the bottom because if AMC's do get involved you won't have a choice. Is that big fat gluttonous bankster on your doorstep yet? He's on my doorstep and the chicken chit 800 lb gorilla is looking for a place to hide.

Valuequestor: (January 27, 2010 3:58pm)

FranknBrian......Dance the whole show in your underwear if you want.....invite Katie and her friends over.

Rob in AZ: (January 27, 2010 3:53pm)

MI Mortgage & Clueless--I agree it would be fun to punish these guys but considering they are "too big to fail" we'll just wind up paying them through taxes and inflation anyway. And the Execs will get another record bonus for "cleaning them up" :-)

Valuequestor: (January 27, 2010 3:53pm)

LOs and Brokers...OMG!.....just wait til you get to work with an AMC. Fun,fun,fun,fun,fun! You to will know the joy of having a just above minimum wager telling you "HOW IT IS". You'll thrill to the experience of discussing complex issues and math with 85 IQ wingnuts and baby's mommas !! All for the low low price of...Hmmmm? How much you got?! Please...if you haven't joined Marc Savitt's National Association of Independent Housing Professionals (NAIHP) please do it soon. $50 / year for professional representation in DC. Banksters and their AMC lackeys are coming after you next. Check out the new NAIHP web site.

clulessdad: (January 27, 2010 3:48pm)

MMortgageDude-If they were trained with 20 hours of CE and took the SAFE Act, they would know to be legal. Not ignorance at all..........IMHO Where can you turn it these blantant offenders? TIL is the Federal Reserve right? Oh boy-that won't go anywhere, but it would be fun to try.

MIMortgageDude: (January 27, 2010 3:36pm)

Clueless and Rob, on the broker/correspondent side we have always had to be more transparent than the bank/credit union side. I am still seeing local banks and credit unions blatently misquoting APR and terms just to get business. It is a crock that we have to be upfront with all costs, but the banks and credit unions don't. I am not sure if it is ignorance or if they are really just being dishonest.

brian tbws: (January 27, 2010 3:15pm)

we are white boys

clulessdad: (January 27, 2010 3:03pm)

Rob-the thing that annoys me is that we have to be totally transparent with every deal, yet these guys get away with deceptive advertising. HUD just suspended a lender for it, so where is HUD with BofA? This is about TIL not RESPA, and they should have changed their software a long time ago. I am just venting. Sorry about that.

Mook Hunter: (January 27, 2010 3:03pm)

YOU DANCE LIKE WHITE BOYS

Rob in AZ: (January 27, 2010 2:42pm)

Clueless--I don't see how the APR on that FHA 30-F could be right, you are correct. It SEEMS as if they are ignoring the MIP (FHA has both UFMIP and Monthly MIP even <80% LTV for 30-year loans). I concede there does appear to be an error on that one (maybe the 20% down FHA confused the software?). Sorry for missing that part of your question; I was focusing on the ARM loan which is very confusing.

5pence: (January 27, 2010 2:26pm)

To a normal person money is just a means to an end. To the banksters it's the be all and end all of their existance (or ours as we've seen as this drama is playing out).

5pence: (January 27, 2010 2:11pm)

As an appraiser it's been sitting at my front door for months, swallowing up anybody that tries to come over. Gluttonous pigs is what they are. Get it through your thick heads that this saying is true "the love of money is the root of all evil" in this world. Guess what, Congratulations, you've been invited to dinner but what you don't know is you're on the menu.

vorpal bunny: (January 27, 2010 2:07pm)

FHA new condo rules will just cause the Developer or the existing HOA to step up and get the approval if they want their units to be more readily marketable.

5pence: (January 27, 2010 2:06pm)

I've been telling you guys, the banks are so big they need to swallow up anything they can to feed their gross overfed bellies. Realtors are next. Are we going to do anything or does it have to be at your front door first?

BT: (January 27, 2010 2:02pm)

Well, gee...it only makes sense, now that the AMCs are flush with cash...MY cash...

brian tbws: (January 27, 2010 1:18pm)

AMC's going into mortgage lending!!!! On tomorrows daily. Dont miss it. Insane.

forejlp: (January 27, 2010 1:17pm)

I dont claim to understand the FHAs decision on condos but dont you think Well or B of A will step up and sign it? So if a development was FHA approved before it wont be now until someone signs? How will we sell anymore condos? They need to lighten up on owner occupied condo purchases or they are never going to get back on track and end up crushing these developments..or should I say future apartment complexes?

Atlanta LO: (January 27, 2010 1:05pm)

The new GFE – I presented my first new GFE yesterday to a borrower who has had over twenty loans. He looked at the three pages (and the verification-of-receipt page to sign) and said ‘you have to be kidding me” !

Paris Hilton: (January 27, 2010 12:49pm)

That's hot!

sick of Govt. : (January 27, 2010 12:48pm)

Don't forget, get ready to gear up for a fight against the new GFE. It's going to paralyze the industry more than HVCC.

Mark: (January 27, 2010 12:37pm)

clulessdad: I'm with you. I just tested it on a 200,000 with 3.5 down and the only other APR fee I have is the .875 origination and the HUD mip and the APR I get is 5.467. When you add in closing costs APR items it will be higher. So to back you up, there is no way to have a FHA rate of 4.875 with and apr of 5.06. I could get to 5.273 with 25% down, 15 year fixed

clulessdad: (January 27, 2010 12:34pm)

Over over the last 2 minutes, I have had 2 wholesalers offer an extra .5 & .75 point YSP for a 12 day lock! LOL Now if it were SRP, then maybe it would seem attractive.

5pence: (January 27, 2010 12:27pm)

Charlie, don't worry about it. AVM's can never replace us and they can never be the "gold standard" by which appraisals are measured. They're dreaming the dreams of the delusional. There is something seriously wrong with these people that think we as appraisers owe them a living.

clulessdad: (January 27, 2010 12:27pm)

Rob in AZ-How about the 30 year FHA fixed rate scenario?

Pardon Me, but....: (January 27, 2010 12:22pm)

If Fannie & Freddie are gone wouldn't that mean that brokers and wholesale lenders are gone too?

Rob in AZ: (January 27, 2010 12:17pm)

Clueless: please don't misunderstand me. There is a lot about the disclosure rules I would change, and I am not defending the current disclosure. I commend the fact you are trying to understand this--most people don't, especially consumers (who have the most to lose by not understanding). To be clear: we are instructed by the law "this is how to calculate". There is no option, it is what it is. I agree it can be misleading, but B of A has no choice in how this is being disclosed, given the current TILA law. The best advice I could give to someone considering it is to run different scenarios, including a worst-case. However that is not allowed in an advertisement: there is one way to disclose, that's it.

Charlie: (January 27, 2010 12:15pm)

I personally believe that the FBI investigate these AMC companies and put a stop to the abused and fraud that is being perpetrated against us. and in plain site. why must the appraiser foot the bill for the AMC companies to exist?

clulessdad: (January 27, 2010 12:09pm)

OK-I concede that BofA quotes out the APR of an adjustable legally. Not what I would do on an ethical basis. But it is legal. I still can ask how can they quote out an FHA 30 year fixed rate at 4.875% with a .875 point fee with an APR of 5.06%? Anyone have a clue on that?

Charlie: (January 27, 2010 12:07pm)

To my fellow appraisers.. I and probably every appraiser in the U.S. just got an e-mail from Bill Waltenbaygh..chief appraiser with appraiserloft that we better get used to the idea of working with AVM's.he suggested we read and really understand USPAP AO-18 and also take a class on advanced statistics and valuation modeling. It sounds like a threat to me. it looks like we as appraisers are on the way out if this ever comes to pass...

Ancient Appraiser: (January 27, 2010 12:02pm)

Common Sense - You spelled it out very succinctly! Problem is these same corrupt institutions are now Federally operated and still making changes to our industry (see HVCC/AMC) that are destroying any chance for it's recovery. The government feeds Fannie and Freddie and they in return are two of the largest contributors to Congressional campaign funds! Anybody else see a problem with this picture?

Prankster: (January 27, 2010 12:01pm)

Let us not forget the Bernanke Blunder that coincided with the backlash against undocumented immigrants who were getting many of the 100% loans, and were pouring into the country buying at the low end so the middle and upper buyers could step up. Bernanke decided that he had to raise the rate that banks borrowed from each other at for 2 years straight, after that, the undocumented immigrants that came to the US last year could not afford to refinance, take their equity to step up and let the newly arrived crop of undocumented immigrants (who were mostly building the new homes) in at the bottom end. And the dominoes started to fall. Now the bottom is FHA, and undocumented immigrants are not allowed to buy in even with 10 or 20 percent down period. Alas, I here another amnesty brewing, this time we may need it. But, I digress, down with HVCC and the new GFE!!

BrokeBroker: (January 27, 2010 12:00pm)

Mortgagebrad-you're right, have the borrower/buyer determine value with their own appraisal. THEN have the banks use HVCC to determine value. If the value doesn't match within a tolerance or can't be supported with a rebuttal-no loan, which will prevent the appraisers from inflating value. Checks and balances will prevent fraud. Also, results in more work for appraisers both independent and those under an AMC. The most accurate (best) appraisers will be in demand by realtors and LOs.

mudge: (January 27, 2010 11:57am)

to cluesdad - When you have a fixed that turns into an arm, the APR will most often be a number lower than your initial interest rate because the TIL calculation factors in the floor rate that the borrower may have when it adjusts. Like that would ever happen. But I have run into this before. I had a borrower and his attorney ask me why the APR was lower than the rate when they received the closing docs. This is the way the lender who was funding the loan explained it to me. Not sure if I am passing it along to you correctly!!

clulessdad: (January 27, 2010 11:57am)

Rob in AZ-they may be legal, but wasn't it also legal to advertise a 1% payment on your mortgage loan with a corresponding APR of 7%. It was deceptive and look where that got us. In this new era of full disclosure, you and I have to disclose everything. But once again, BofA gets to do what they want. Borrowers can't see the risk of rising % rates in the future to properly make the decision to take the 5 year loan vs the 30 year fixed. To use the current index is just wrong. It may be legal, but it is wrong.

Greg Prete: (January 27, 2010 11:52am)

Good morning guys. No commentary offered here. I just want to thank you and the TBWS team for your informative and hilarious morning videos. Somehow, you manage to provide relevant info that truly is boring as cows staring at fenceposts and make us laugh as well. When I get to the next event (SD again?), I hope to buy you guys a pitcher of Hef and thank you in person. There's truly a healthful quality about laughter that can't be duplicated any other way though try as we might. Best to you all at TBWS in 2010.

5pence: (January 27, 2010 11:51am)

The stupid heads of the GSE's saw all the money that was being made by the big banks selling MBS's and CDO's and wanted to get into the game. Problem is, Fannie and Freddie were too late! The big banks already were seeing problems and pulling out of that market but the GSE's jumped in with both feet. We should all ask ourselves, do we really want for profit corporations controlling our money? They're just going to use it to screw us. I seriously wonder when it's going to get to the point that people will actually do something. $6 million bonuses for the heads of F & F for running a money pit? with our money Any monkey could do that.

Rob in AZ: (January 27, 2010 11:46am)

Cluelessdad--Yes, those other things do get cacluated in there. Also PMI/MIP etc. Since you are asking, my opinion, I don't think it's deceptive per se, only because we are required to calculate them that way. B of A is following the law--to calculate differently would be illegal. (Not to say a B of A LO can't show what the actual payments/rates would be, but that isn't allowed in the advertisement). You're right: it is a little quirky because consumers won't understand what it means and assume it is a better deal. I THINK what you are remembering could be the old "B" paper ARM loans--on those the rate calculations generally did hit the caps because the Margins were so high--the loans were designed to hit those caps. On "A" ARMs the APR often is lower--we cannot predict what actual rates will be 5 years from now and therefore have to use the current index for this estimate.

Tom: (January 27, 2010 11:45am)

It'd be one thing if we were all at the same disadvantage. But my fiance is a loan officer at a correspondent lender, and they actually think it's funny that I have to disclose YSP and they don't have to disclose "SRP." What a joke.

clulessdad: (January 27, 2010 11:45am)

Mark-Yes-but in their scenario, I believe it assumes a $200000 loan with 20% down. So no MI, but I don't see a huge increase in APR on their FHA programs I just plugged in the same scenario for an FHA loan purchase and the note rate is 4.875% with .875% points with an APR of 5.092%. No UFMIP in that calc, for sure. Deceptive? Mark what is your group of 4?

Mark: (January 27, 2010 11:38am)

Clulessdad - BofA like others are not adding in MI. They do this all the time. Our small group is up to 4!

clulessdad: (January 27, 2010 11:32am)

Rob in AZ- I see what you are saying, but isn't that deceptive? I somehow remember someplace that the APR on an adjustable should be based on the fixed rate time period and/or take the maximum rate that the index+margin would be during the adjustable time period. This is just another scam waiting to happen. Even BofA's fixed rate note rate and APR's don't make sense. I keep plugging in their figures and come out with a much higher APR. Or does the bank not have to use escrow and prepaid interest in their APR calcs?

Rob in AZ: (January 27, 2010 11:30am)

5pence and Bicklehoff--you guys both hit the nails on their heads! Sad but true.

Common Sense: (January 27, 2010 11:28am)

This can all be traced back to Fannie/Freddie. They were exempt from serious oversight, treated like private entities and allowed to make huge campaign donations to the very people charged with their oversight, all while having the knowledge that they would never be allowed to fail. Under pressure from groups like ACORN,they were buying the toxic loans left and right and telling the banks (originating and investing) that the loans were performing and that everything was hunky-dory. They did such a great job of convincing us that they were making money, private investors jumped into the game. It defies logic that a stated income 80/20 with a credit score of 520 is a good risk, but how many of you made that loan? It's not your fault, you were told that these loans perform adequately, But you can't blame capitalism when the governemnt was involved on so many levels. If these guys had seen any serious threat of personal bankruptcy and jail time we wouldn't be discussing this today.

MIMortgageDude: (January 27, 2010 11:26am)

Marm/Tom/Ravin: Make that a party of 4. I started in the biz when a loan had to be qualified on it's merits, not on a political agenda. But to satisfy the powers that be, programs had to be created to put more people in homes. We only used the programs that the big banks gave us to write.

5pence: (January 27, 2010 11:21am)

Problem with the GSE's is that they're private enterprises with a public mandate. No one likes that private enterprises can control public policy. They won't get rid of the GSE's they'll just morph them into either private enterprises with a public mandate (like the Fed) or they will be taken over by the Gov in another socialistic power grab. Don't fret about who's going to be buying those loans, the Fed, on Christmas eve, left $4 trillion dollars of taxpayers money on the treasuries doorstep to continue the bailout for the GSE's long after the Fed (for appearances sake alone) is gone. This pull out of the Fed is a sham when they leave years of bailout money behind. They want to test the market to see if anyone will buy their worthless CDO's & MBS's. There is no market without taxpayers paying for it and they know it. Wow, seems FHA is trying to kill the Condo market. That's shocking. Good show again today guys. Sexyfest-I agree, the babes are all sexy. Silly wabbits, it's not porn lol

jglynn: (January 27, 2010 11:19am)

love the pot farm background and the unemployed farmers. awesome

Bicklehoff: (January 27, 2010 11:16am)

As far as Fannie/Freddie/FHA/Barney/Condos/HVCC and the rest go, what we really have here folks is a backlash that will keep going until it completely decimates the housing industry. This is actually a problem with Democracy. See, the average person doesn't actually know (or care about) the details of how we all got into this mess. They just know they can't sell their home because they got a 95%-100% loan, the market has gone down, realtors will take about a 6% cut, the appraiser won't give them a "fair" value (but will charge them $450-even with no loan), and the bank won't give them a loan. So in their mind "someone has to pay". So the politicians all scramble over one another to try to make all those guys (us) pay. So we are perfectly set up for another huge housing market crash. This will result in congress (and Voters, sigh) demanding that we do more to save the housing market.

Mark: (January 27, 2010 11:07am)

Mortgage Broker - I'm at a Credit Union and have been there for 28 years - wonder if I qualify for retirement? Tom/Ravin - we are now a party of 3. I'm not going without a fight and I'm probably on the watch list as I write My Senators and Congressman weekly and talk to their office probably monthly and vent. Hey, they work for me since my taxes pay their salary, right?

FHA Steve: (January 27, 2010 11:03am)

Well Said TD Hawk, 2nd post of the day!!! That is my opinion also....

Mortgage Broker: (January 27, 2010 11:03am)

Vote with your feet and improve your life. www.moveyourmoney.info

Tom: (January 27, 2010 11:02am)

Mark/Ravin - I'm a 7 year veteran broker and own my own shop. It is ridiculous, and I couldn't agree with you both more. Nobody else discloses their full income, the new GFE is a bullet targeted at confusing and scaring OUR borrowers, and my shop offers my borrowers loans and rates at a FAR lower profit margin than any local or big bank. It sucks, but it is what it is. I'm not going anywhere until they shut me down. F*** 'em!

bison: (January 27, 2010 10:57am)

Odd, my normally conservative company is participating in the DEL RAP. Now that you say no lender in their right mind would do it I better see what's up.

Mark: (January 27, 2010 10:55am)

Ravin - love you. Glad there is someone else out there that see the light. I thought that I was the only one.

Gilbert: (January 27, 2010 10:54am)

Mark, I agree with you and I empathize with your situation. I still shake my head at lenders willing to do 80/20 with a 550 score full doc and 580 stated. I started in the business when the underwriting standards first asked if the loan made sense to do, then figured out the the buyer then qualified. Common sense was also important in making a final decision. In the past 10 years, our country and our industry got lazy. Everyone believed the informercials that said you could get rich in a month buying real estate with no money down and the lenders tried to get that business, even though it defied logic and now we are where we are.

Ravin: (January 27, 2010 10:51am)

I agree with you Mark, couldn't have said it better myself. Ditto with the SISA, NINAs, and the ones I did were self employed investors who were fully aware of their actions. Those programs were offered with ridiculous rebates, and yes some unethical people in our business took advantage...but it was there to take, offered by those same banks. I'm tired of doing the right thing continuously, just to be mistrusted due to the reputation I am being given by the powers that be. I'm exhausted trying to justify what I have to go through to get a loan closed for a stellar borrower. Part of the greatness of this country was the freedom of choice...that is almost gone in this industry, as the whole premise of being a broker and offering choices is steadily being quashed.

Mark: (January 27, 2010 10:45am)

Tired of Transaction based LO's - I am a Broker and have been one for 17 years. I freaking tired of being blamed for the financial mess. I did not create the loan programs and you know what - I can list on one had the number of subprime or NINA, SISA loans we have done. Banks with their lobby group are in the pockets of all legislators, and now they are limiting my income and again, I'm the only business that has to totally disclose my income. I bet you dont disclose your income! GEt of your high horse and see the light - when I'm gone, the only place you can get a loan will be the banks and they will name their rate, jack up their fees and remove any competition. We no longer have free trade, fair business and I do consider this restraint of trade.

Caddy1: (January 27, 2010 10:40am)

I'm not surprised to hear that some of you are more concered about the dancing and SEXYFEST and won't forward this to your realtors. Your kidding right?! Last time I checked the nuns at my church weren't selling real estate and most of the realtors in this market are moonlighting at Hooters or bartending just to make ends meet. Prudes go home! How about paying some attention to the industry crumbling at your feet! These guys are just adding a little humor to an otherwise bleak time for our industry.

real appraiser: (January 27, 2010 10:39am)

mortgagebrad: Mostly because too many bad appraisers will reach that target value to get more work and the honest appraisers who would give it fair market value would go out of business, so the only appraisers working are pushing values up, and thats how you get to where we are. Every appraiser knows there is a range of value. If the sale price is 200k and the sales are 190-200k, the contract price will be met unless certain conditions warrant that it not. the problem is if the same range of price is for the same contract for 225k because the buyer is not informed or several other reasons, your scenerio would allow bad appraiser to find a way to reach $225K, same problem. I know this might upset a few but there are thousands of variations to this that create problems. the truth is we all know what a bad deal is when we see it, the problem is all those in each industry that choose to close their eyes and cash in. If I can prove the value is there, I DO, If not, I cant (not will not)

Gilbert: (January 27, 2010 10:35am)

I don't know if anyone here has donated to Haiti relief or cares about the cause. If you still want to donate, I'd suggest this site. The group provides materials that can shelter a group of ten people for six months. Thanks to a plug from Keith Olbermann and a $10,000 from Don Imus this morning, they've been able to help over 800 Haitians. If you wish to donate, go here http://bit.ly/8TNR9J

Rob in AZ: (January 27, 2010 10:30am)

@Cluelessdad: It does sound misleading but on an ARM it is not uncommon for the APR to be below the Note Rate, especially on 3/1 or 5/1 ARMs. This is because the APR is calculated over all 30 years, and after the initial "fixed" period the Rate & APR are calcualted at the Fully-Indexed number. Example: A 5/1 today may have a Note Rate of 3.75% and a 2% Margin, with an Index of 0.37% (current 1-Year CMT Index). For years 5 - 30 the rate is assumed to be 2.375% (Index + Margin rounded to nearest 0.125%). So you can see 5 years at 3.75 and 25 years at 2.375 will give you a result lower than 3.75--even if the borrower pays points. Hope this helps!

mortgagebrad: (January 27, 2010 10:22am)

Brian and Frank, HVCC was brought about to keep the broker or the lender from pressuring or influencing the value of an appraisal; to basically take the communication away from the broker/lender. I propose that the borrower on a refinance has the right to suggest a value on his/her property at time of order. The purchase agreement, which is buyer and sellers agreement on value, can be submitted. So why can't we suggest to Cuomo that an estimated value be given at time of order? They have already taken us out of the line of direct communication. Imagine a world where on a purchase, where we couldn't submit a purchase agreement or "estimated value" to the AMC. Scary, huh?

Metro: (January 27, 2010 10:16am)

Not only is Fannie a dinasaur, but Barney Frank is as well. Considering all of his recent scandal you could probably call him "Tyrono-sore-ass"

Socal Appraisal Gal: (January 27, 2010 10:16am)

Changes to FHA who is coming up with this stuff!! In trying to continue to get lender's business I have asked about who is running thier lists. You betcha its AMC's. Oh yeah and the "reasonable fee" is what the AMC has decided to pay not what the appraiser charges. For the past 10 years I have charged around $400 to $450+ for an fha appraisal. AMC's I talked to said they would be paying $250 to $300 including the 1004 mc in that fee. One went as far as to tell me this is like a "fee Split" type business and did not understand why I had a problem. Well for one thing fee split was when someone acutally payed for some of my expenses. AMC's do not! I called HUD for clarification and they said they did not have any and told me to write Congress. FHA connection could not even get me a name or phone number at HUD to voice my concerns to. What a Joke!! Does anyone realize a lot of these AMC's are run/owned by former Chief Appraisers from the subprime market? Now there is your story TBWS.

Charlie: (January 27, 2010 10:08am)

Hey Florida...why not charge it to the appraiser..

Left Isright : (January 27, 2010 10:02am)

Barney Frank is coming to get you because you are a fraudulent #@$%&

clulessdad: (January 27, 2010 10:01am)

I read the HUD press release and saw that one company was providing disceptive advertising. Interesting to see that BofA today is offering a 5 year fixed rate note rate of 3.75% with a 1.25 point fee (Plus lender fees and escrow plus prepaids) with an APR of 3.566%. HUH? That isn't deceptive? Try it yourself https://www9.bankofamerica.com/home-loans/mortgage-purchase/rates.go

Chris Sorensen: (January 27, 2010 9:57am)

America, Fannie Mae, Freddie Mac & FHA Must Turn You Down! Loan Denied. http://www.trulia.com/blog/chris_sorensen/

Colorado Mama: (January 27, 2010 9:52am)

I have to agree. Sexy Fest is so 80's. I can't forward without risk of offending someone, somewhere. So, back under the table you go! I am not a prude. I go to Hooters with my hubby cause he gets a cheap thrill. But that is not business.

Gilbert: (January 27, 2010 9:52am)

Florida, I know they just opened up condo lending in Florida but that market messed up that I don't envy your situation there. One question I do have for the group is this... I know VA is going to have a different process that FHA...has anyone figured out what they will want for condo approvals going forward?

Don't find fault, find a remedy: (January 27, 2010 9:43am)

So, the person responsible for killing our industry is the new president and not the woefully wrong nimrods who thought it was ok to do 100 LTV loans for people with 550 credit? All politics aside, if your entire economy is based on consumption and spending, it doesn't take a MENSA to know that it can't sustain itself. If you look at any statistical graph of growth in the past decade, you'll see how far above the trendline the bubble was. Our industry is responsible for the mess we are in because we all got #$$@ greedy. I don't know how many people would leave 3.0% YSP on the table for a $600K Option Arm... The fact is, if you did right by your clients, you're still in the game today. If you didn't, you're in a "woe is me" place right now and you're losing to those who do right for their clients.

brian tbws: (January 27, 2010 9:39am)

Hi Nobody, We got our info from hud. Now one company was a dba of another and we may have just left that out. Thanks for the heads up!

brian tbws: (January 27, 2010 9:38am)

It's light hearted humor and we're all big boys and girls. We've found most people are ok with a little humor AND the sexyfest thing has been embraced across the board by virtually everyone. You know.... your Realtors might appreciate a little humor. Thanks a bunch

mortgage maven: (January 27, 2010 9:31am)

the only thing stopping me from forwarding this to all my realtor partners is sexy fest... guys, come on! I know it's a joke, but seriously!

Tired of Transaction based LO's: (January 27, 2010 9:27am)

Mark- how have the bank created a monopoly. I assume you are in the brokerage or correspodent world. Just curious- after you do a transaction who do you rely on to buy that loan to replinish your warehouse line. I assume that would be a bank? So, if banks continue to be liable for the shady transaction coming from your world why wouldn't they want to control it. I tell you what- go be a hard money lender so you can take on the liablity.

DGlaze1: (January 27, 2010 9:23am)

Liquor, helping white guys dance well since 1933 (21st ammendment). BTW all the women are sexy, can't choose one.

nobody: (January 27, 2010 9:15am)

You missed another company in hot water with HUD. They are also looking at refering Residential Home Funding Corporation's principals and underwriting staff to HUD's Mortgagee Review Board for administrative sanctions as appropriate.See more info at Residential Home Funding Corporation http://www.hud.gov/utilities/intercept.cfm?/offices/oig/reports/files/ig1031

Florida: (January 27, 2010 9:14am)

Wells came out and said it will be over $1700 to get a condo approved by them and the borrower cannot pay for it. So my question is, who do they expect to pay? This will definitely help the lagging condo market, won't it?!?

Anti-Barney Franke: (January 27, 2010 9:14am)

Hey HuH! Bad analogy. Even if these guys can't dance very well, please don't even try to defend Barney Franke. I don't care if you are a flamer or not.....bottom line is that you defend Barney Franke, you are defending the very guy that wants to end your career.....he and Obama and Pelosi are the 3 horsemen coming for the apocolypse. I would hope you are not in our industry because your comment is so contradicting to our issues in this industry.

James: (January 27, 2010 9:06am)

You guys shouldn't stop dancing. You can't please everyone no matter what you do! You guys do a great job, keep it up!

Not Fat and I don't dance to bad music: (January 27, 2010 8:59am)

You're talking to people in the Mortgage Business...Late nights working is the ideal for Hostess and Dominoes...they won't be closing anytime soon...

Mark: (January 27, 2010 8:53am)

The banks wanted control and they no whave it. They have been allowed to create a monopoly and have gotten rid of fair business and fair competition. Its time the WE THE PEOPLE take back control. We need to institute term limits on the Congressional people so that the stoggy old people are replaced by new forward thinking representatives. Remove lobbyist and ban corporate contributions to election funds. Can we just have a Congress that actually works for WE THE PEOPLE and not corporate influence?

Who Cares About the Irrelevant: (January 27, 2010 8:49am)

Who Gives a flying Flip About SexyFest... move on

Robby850: (January 27, 2010 8:46am)

Hey guys... great show. I send this out to my staff every day. Tip... stop dancing.. its awkward. If fannie and freddie just created a insurance fund similiar to FHA(but much cheaper .25 on each loan) and made a slightly larger margin in the bond/pooling. If the govt is so keen on removing YSP why does their organization choose to pay higher bond yields for higher rates? anyway... Get rid of the risk adjusters and just create separate bond pools for higher risk loans. create a larger spread in the "b" pools and just collect the .25 or .5 from every loan. Does that make sense?

HuH?: (January 27, 2010 8:46am)

You guys have the nerve to mock Barney Frank's lisp and his general gayness and then you turn around and dance like that...to Color Me Badd??? Seriously??? What's next, you'll start defending 3% YSP for a 5 year prepay on an Option Arm? LOL

joecolorado: (January 27, 2010 8:41am)

Oh please, dont try and justify what the banks have done to our industry by telling me to go elsewhere. I have never considered the USA to be anything but great. I have lived and worked as an appraiser on three continents and seven countries and I have seen what one sided pressure does to an economy and to an industry. If you think for one second that everything is going to go back the way it was then please lend me your rose tinted spectacles 'cos mine are broken.The banks control the financial sector and its they that call the shots.Look at the senators that are getting paid by big banks and you will see the results in the way they have sold joe public down the pike.So dont pontificate about my realism,you really need to take a hard look at what is actually happening as you obviously arent paying attention as you should be outraged as well as I..

Common Sense: (January 27, 2010 8:33am)

joecolorado--Have you checked into the demand for loan officers and appraisers in non-capitalist countries? You might want to look into that before you go slamming the system that made possible the greatest economy the world has ever seen.

joecolorado: (January 27, 2010 8:29am)

HVCC is not going away, neither are AMC's, that big banks are making too much money from and due to them. The next hurdle banks have is Realtors, and Title companies as they also get a cut of the Real Estate pie. Its gong to be interesting to see just how far this will go, but remember Credit Unions are still having problems where big banks are concerned, and the banks have the lobby to change anything.

FHFA does what with my tax dollars?: (January 27, 2010 8:10am)

Maybe Fannie and Freddie should stay, and just get back to the BUSINESS of providing liquidity for mortgage loans, and concentrate less on the underyling social polictical agenda mandated by Congress (read Fannie's mission statement and "housing goals"). Have you seen how FHFA estimates the "conventional, conforming" mortgage market? It is convoluted at best - http://www.fhfa.gov/webfiles/2137/MortgageMarket200942709.pdf. Call me crazy, but maybe just get back to the basics of credit, capacity, and collateral to make good mortgage loans, and quit using the publics' tax money to satisfy a political agenda.

ed: (January 27, 2010 7:57am)

Great idea! Like the tax code, it needs to be dumped and restructured. That would get rid of HVCC!!

WC: (January 27, 2010 7:01am)

IF FANNIE AND FREDDIE ARE GONE IS THE HVCC ALSO GONE. IF THE PEOPLE IN THE AGREEMENT DO NOT EXIST IS THERE NO LONGER AN AGREEMENT?

Noel Cookman: (January 27, 2010 6:34am)

Barney Frank . . . please excuse the profane response. But his latest statements show what happens when blood has drained from the brain to other body parts . . . don't even want to think about it. BFF rarely operates with ANY blood in his brain. We can save the American economy by reducing the budget by only $173,000/year - Fire Barney Frank. Well, maybe another $400,000/yr. reduction wouldn't hurt either.

joecolorado: (January 27, 2010 6:27am)

The banks will not lose out as they are in control. PBS ran a special last night about credit card companies and banks and the one thing that really struck me was the arrogance of their mucky mucks.They were smug in the knowledge that nothing survives without the bank/financial system and basically if we didnt like it then we could lump it as it was too bad for us.The credit card exorbitant interest rates and the fee gouging were not considered as greed but as typical fee structuresas it was a free market enterprise and an example of capitalism.live with it or dont use it seemed to be their motto. but as I have been told on several occasions by mortgage company owners, it's the golden rule, we have the gold, we make the rules.

Sharon : (January 27, 2010 6:14am)

Love the names. Catchy! Rap? Loved the Hostess thing!

TD Hawk: (January 27, 2010 5:57am)

Fannie and Freddie are no longer "government sponsored enterprises", they ARE the government. FHA too. Each would not be afloat, one could argue nor would the housing market, if it weren't for government (taxpayer) ownership. This is going to become crystal clear if it isn't already at the end of March when the Fed stops buying MBS, IF no other investors pick up the slack and/or the Fed doesn't change course and continue its purchasing program. Personally, I'm most curious to see what takes the place of the GSEs and FHA once it all comes apart. It's not as if banks of any size are in the best of health. I can't see any of the above being profitable any time soon given joblessness, foreclosures, recasting ARMs and the imminent flood of 1.7 million units of "shadow inventory".

911loan: (January 27, 2010 5:55am)

Great Dance moves