Another Tax Credit Extension Coming - 06.14.10 | Video Marketing and Mortgage News Designed for Mortgage and Real Estate Sales

mark.green: (June 15, 2010 12:53pm)

One of my LO's is FREAKING after a webinar about credit history and how it will affect our transition to the NMLS. He made it sound like if you're not above a 640 you may be out! Has anyone heard anything concrete on this matter?

empower: (June 15, 2010 11:27am)

I know we talk primarily about the residential business but what about commecial business? Where does one go to get LENDER info besides Scotsman's guide (and I do mean LENDERS) ?

neal: (June 15, 2010 9:47am)

what is up with the bald look, you're not sick are you...Cancer??? going through Keemo??? if not, This was just not a good choice...and as we know life is made up of choices great show guys

The Loan Arranger: (June 15, 2010 8:26am)

My personal experience with builder business has beed good. But I think the problem with their applicants not closing has more to do with the builder agents accepting contracts from unqualified buyers. Sunday I watched in horror, as a Real Estate agent qualify a potential buyer with projected income. What makes it really funny is, she was using an HP12C to do it. LO's are not in the business of originating, processing and underwriting loans that can't close. I don't try sell houses, so why are realtors qualifing buyers? So Mr. Builder, get a seasoned loan officer to qualify your potential buyers, not little Ms. Suzy Cutie Pie....Yeah I said it.

tbwbrian: (June 14, 2010 3:19pm)

check out the crazy video of our elected official on my facebook page. its a little old, but if you have NOT seen it, its worth it. ~tbwsbrian

5pence: (June 14, 2010 11:19am)

I just found this and it directly relates to this discussion. Everyone keeps talking about how the big banks and Wall Street caused the collapse, but it was the big, vertically-integrated home builders (the ones with their own finance companies) who taught the banks the art of predatory lending. Builders had less regulatory oversight and an incentive to sell homes rather than make sound loans. After the repeal of Glass-Steagall, they could sell the loans to 3rd party investors, so the objective of builder-owned mortgage company was to push home sales. These builders also had an incentive to use shoddy materials, hire undocumented workers, inflate appraisals, promote liar loans, and more, and they used their political clout to pass laws that shielded them from accountability, especially in Texas. To learn more, read "Texas Homebuilding and the Global Collapse" at www.homeownersoftexas.org/collapse.pdf.

tbwbrian: (June 14, 2010 9:48am)

ive been telling people i shave my head 1/ for world hunger 2/ global literacy 3/ global warming. Truth of the matter is, its hot and my 8 year old daughter wanted to cut my hair. Send us a comment on the new home builder live show. Id love to have that conversation. let us know. brian

Funrunners: (June 14, 2010 9:46am)

Well, I guess if you think about every Guru, you can think of, has been bald.......So if YOU like it great, relax, and if you are not married act now and join as many social online services as you can.....lol Thanks guys.....

5pence: (June 14, 2010 9:29am)

Brian : Did you cut off your hair to show support for the Dixie Chicks? "Dixie Chick Natalie Maines Shows Off Buzz Cut At Eagles Show". How nice ;^)

jcollins: (June 14, 2010 9:24am)

DERK, A lot of time the prefered lenders are chosen because of the spec loan. The lender will make it a requirement of closing that loan. I agree the builder wants the control of the loan so that the know it will close. I have had the same expirences as you wrote. But, will all this said I have noticed that builder' lender is usually in the ball park but, just a little higher and you know what that means. Bigger rebates. Rates so high that sometimes I would tell the client to go ahead a close with them and then I would refi them at no cost. This was becasue of the big incentives. It really boils down to control and profits. Mainly control, they will cut their fees/rates to keep the deal in their pocket. I have helped clients nego. against them when I see this.

5pence: (June 14, 2010 9:23am)

Derk, not all builders are saints - you guys have to keep in mind it's a big world and although you have no experience of it happening, it could be because you are honest and don't associate with dis-honest people. They tend to travel in certain circles, much like the roving packs brokers of the pre-meltdown that drained one area and then moved from city to city across the country for more suckers. Bait and switch can be a variation of a sleight of hand magic trick that leaves the crowd in awe. I know good builders and they are usually local builders that aren't looking to make a killing to make up for overall profit losses that huge builders have. JMHO

5pence: (June 14, 2010 9:00am)

Is there a Global War Between Financial Theocracy and Democracy? Good read : http://www.huffingtonpost.com/les-leopold/is-there-a-global-war-bet_b_608703.html

Derk: (June 14, 2010 8:48am)

I've sold a lot of new homes. I've always had my Buyer price shop the loan and the preferred lender was always competitive (they make it up on volume, I think). If builders didn't have preferred lenders, they'd be at the mercy of of lenders who would not show up at closing with the money. It happens all the time, it happened to me several times when I was a small independent builder. It costs the builder a lot of money when these unscrupulous lenders do this. Preferred lenders are selected, not because of kickbacks, but because they are lenders the builder has found to be trustworthy. Any lender can go after preferred lender business, they just have to be really good, and, in my experience, they don't kick back to the builder. I sell houses, so why do I care. Because it's wrong. I think it's wrong to accuse builders of this practice. I don't believe it.

OrlandoMtgGuy: (June 14, 2010 8:32am)

Ok Builder, why isn't the restrictive requirement of being an "approved lender" not considered a price control and detrimental to the buying public who in the end ends up with a higher mortgage rate for the life of the loan eventually costing them "thousands" more? After all, within reason your price is whatever you say it is that the market will bear to cover the real benefit of fewer dollars at the table on an in-house refereral. That's the only selling point. In today's market you would think a home builder would invite any help in moving their product faster to a closing at a better price to bring the buyer in. Most loans today are so fully documented upfront and decisioned that it's not outside lenders that cause the fallout problem it's fallout from chain sales.

BUILDER: (June 14, 2010 8:11am)

You guys just cry about not getting builder business. Thats cuz you have never been on the receiving end of the house being completed, yet buyers lender cant close the deal and we are left holding a HOUSE. Wake up and smell the coffee children. I bet you wouldnt complain if you were one of those preferred lenders.

dglaze: (June 14, 2010 8:03am)

Was that Dr Evil?

GODLIKE: (June 14, 2010 7:55am)

Noel you hit the nail on the head. The bennies being tied to the Preferred lender just lets them invisibly raise the rate to cover said bennies. Do like the other law that passed and then disappeared and say the builder has to offer the same bennies no matter which lender the buyer uses and then we'll know they truly are bennies

msmammypie: (June 14, 2010 7:53am)

I have to agree - there's a striking resemblance to Uncle Fester. Also, guys, it's P-R-O-C-E-S-S-I-N-G.....

GODLIKE: (June 14, 2010 7:52am)

Brian, did you say dooo or pooo?

Noel Cookman: (June 14, 2010 7:49am)

I can't believe I watch every second of the end tag EVERY time . . . and still chuckle. Seriously, the builder-lender relationship can be as good for the consumer as any other consumer-lender relationship - all we have to do is extract the REQUIRMENT that the buyer use the preferred mortgage company in order to receive the "bennies" from the relationship. Then, voila! - we are back to sanity, reasonableness, free markets and fair-minded competition, or as I like to think of it - my always-superior way of doing things.

5pence: (June 14, 2010 7:41am)

Title XIIII Subtitle E appears to be the one you mortage brokers and LO's need to weigh in on. Title XIIII Subtitle F is where appraisers need to weigh in on with their representatives. They are starting the final voting next Tuesday and will be voting title by title. If they go by the numbers they will have to vote in over 2 titles per day which would get our Subtitle up at or near the last day. But, we should pay attention to the meetings as we don't know when our concerns will come up and it will likely go fast, so we need to weigh in. Call (866) 544-7573 to be connected to your Senators. The following link will take you to a page where you can find contact information for your particular State Representative. http://www.house.gov/house/MemberWWW_by_State.shtml or you can just call the Senate number and ask to be transferred to your state House member. Please do your part. Thanks

frankgaray: (June 14, 2010 7:39am)

Man. You guys are running some serious smack on my new (lack of) dooo. Pertty funny. ~ brian

OrlandoMtgGuy: (June 14, 2010 7:24am)

Just read the HR4173. Limiting a fee to 3% will crush the small mortgage loan applicant in many cases and when you tie it to the part of 4173 that makes our fee capability either/or on YSP or borrower financed origination cost no longer a combination seriously does a disservice to a borrower and our ability to offer the best package to make the deal work anbd puts pricing firmly in the hands of a lenders treasury dept daily. We should limit our representatives compensation to a max number that is not guaranteed and take away their ability to serve one term and get the same pay for life! GET RID OF BARNEY FIRST! TODAY!

GODLIKE: (June 14, 2010 7:18am)

What kind of bet did you lose Brian?

USA: (June 14, 2010 7:17am)

White men should not shave their heads.

candace369loan: (June 14, 2010 7:15am)

The tax credit extension will be great due to the rural housing being out of funds and I have 3 deals that were signed on April 30th, 2010 but are still waiting for short sale approvals!! Love the show guys!

Alabama Country Boy: (June 14, 2010 7:14am)

Forget all of the incentives! We need to know how to determine who is eligible for a loan, who is going to fund the loans, how we are going to get paid for our services, to whom we report for what, how to legitimately establish a value for a subject property, what *%#/! forms to fill out, etc. Then we can go after what buyers are left that have an income and start financing the sale of this gosh-awful inventory of houses. I am sorry folks but nothing spectacular is going to happen until the inventory is reduced. Every one of these " I'm from the government and I'm here to help you" folks does not have a clue. Tightening credit standards and increasing down payment requirements will not reduce inventory. We stay open on Saturday and Sunday afternoon, hang the streamers, fly the hot air balloon, have a live radio show, and have the lenders on hand to close the deals. We get our money out of this inventory and move on. That is business as it should be.

pazookie: (June 14, 2010 7:13am)

Curly, Moe! Where's Larry?

Evil Genius: (June 14, 2010 7:08am)

I kept seeing Uncle Fester, not Telly Savales!

Nuke 'em Until They Glow and Shoot them In the Dark: (June 14, 2010 7:02am)

They should have NEVER extended the Tax credit to begin with. Too Many hand outs, record deficits and US Economy in a depression. Huh... Talk about stupid!

joecolorado: (June 14, 2010 6:51am)

Frank-GREAT restraint.......Brian tell us who did that to you and we will go and put a brick through his/her window.

ZMortgageMan: (June 14, 2010 6:47am)

I thought I was watching Frank & Brian.....not Frank & Mr.Clean. Nice do.

rob: (June 14, 2010 6:31am)

This could be good news for those that made offers on a short sale April 29th

KASSGA: (June 14, 2010 6:13am)

I agree with ALLBROKER: most agents and mortgage people I know are dead now since the expiration of the tax credit. We should start seeing the bad numbers when they focus the news on RE again not only the Oil Spill. They need to extend the credit not the allowable time to close. That's what was keeping the RE market moving. Not even the low rates are doing it now. Military are the only ones who still qualify for the credit. I'm praying for all RE agents & mortgage guys that they extend the Credit for new contracts to get things going agiain. Wait till we see the numbers for new sales for June. They will be low!

DGrapoli: (June 14, 2010 6:11am)

I can't hear you Frank and Brian, nice hair

Hammer: (June 14, 2010 6:00am)

Brian, let me know if you want to go with me at the end of this month to get a tattoo.......and I can share my sunblock with you. Frank, some lenders are now considering "breaking wind" as a Changed Circumstance and will allow you to redisclose...........

ALBROKER: (June 14, 2010 5:59am)

What is the big deal about the tax credit extension? The sales contract still had to be finalized prior to April 30. Unless it is new construction, surely most originators can get a loan closed in 60 days.

TNDebbie: (June 14, 2010 5:14am)

Any talk of how secondary market will intrepret the originator compensation - looks like the law is vague (go figure)!

CornerstoneKathy: (June 14, 2010 4:54am)

I agree!! I think a a little chin fuzz would look good too!

bernard j dera jr: (June 14, 2010 4:51am)

underwritting cry letter

Jersey Girl: (June 14, 2010 4:24am)

Love the haircut Brian. ;)