Fannie Mae Steps Up to Help Vets - 09.29.10 | Real Estate News for Real Estate and Mortgage Professionals

BrettS: (October 01, 2010 11:19am)

i will tell you who is missing LTV's and Number of units....IN HOUSE UNDERWRITING. It is a big problem in our industry. It is the underwriter letting something slide for her buddy loan officer or her boss. Since they sell them in pools they hope theirs wont be the 1 out of the 100 that gets audited. In house underwriting is as bad a the appraiser being the sellers brother in law.

barryl: (September 29, 2010 1:49pm)

with all the free time us lo's have, heres a recipe from Dom Deluise book eat this not that.. sausage and pepper sandwich: thinly slice green peppers and onions, break apart many garlic cloves, the more the better, the trick with garlic is to break the flavor and release the skin, a mild blow with the fist should do. next in a medium hot skillet with virgin olive oil, put in the green pepper first, then the onion and last the garlic. when translucent, take out and set aside, oil included. next, add in the sausage, when golden brown, before finish, add back the rest. add complete mixture inside italian bread. no diets today!

barryl: (September 29, 2010 1:36pm)

Dom Delouise...Eat this DU8!

xxbigmikexx: (September 29, 2010 1:06pm)

Funny show today guys...Love it

5pence: (September 29, 2010 12:37pm)

Hilarious mdeery!! Reasoning leads me to: The cause of our problems is the Fed feeding $$$ to investment banks by keeping bank rates low for too long. The Fed caused more money to be pumped into the system which created a focused inflation in values onto where those funds were being used-homes. This focused inflation in values had a tipping point when people missed payments. Investors pulled out. The drop in home values truly reflect the oversupply of $$$ that flooded the system. That amount is still in the system. So, prices can not recover without either taking that money back from the banks or printing more to create the illusion that you still have the same amount of money & value. Fed chose #2. Reality has no place in the "inflate to health" mirage. A $300k home might be worth the same now, but not in '07 $$$. Say it's worth $225k in '07 $$$. Where did that $75k go? It went into the pockets of those that printed the $$$ & used it. It's an illegal bank tax on us through inflation.

mdeery: (September 29, 2010 12:21pm)

Also Paula to expand on your comment about LO's and credit. As a percentage of people, the pigs in congress have more DUI's, bad credit scores, and judgements etc against them than most other demographic..google this info as it is easily found. So should we hold them to the same credit standards? For the states that require a LO to have good credit scores or you cannot originate in this economy is just disgraceful. I know many of my colleagues who are the best of the best at originating that have been hurt by the credit crunch, because their spouse lost a job, or they could not make the same income anymore.

Fl Mortg Lady : (September 29, 2010 12:18pm)

Howling with laughter after reading Owl Tree and Waynoo!!!!! Too bad it's the truth! :) However, this was the best belly laugh I have had in months!

mdeery: (September 29, 2010 11:52am)

Good show today lads, both of you look like you could strangle someone hahaha. I say you have a show where you hang straw dolls of Cuomo, Frank and Dodd and you just beat the bejesus out of them with bats. We will all get pleasure from it. Cheers

5pence: (September 29, 2010 11:33am)

Good links at youtube Evil Genius. The truth-depletion of the economy to keep the banks casino action and juice going-and financial reform does nothing to regulate or make criminal or stop these bets with no downside for them, just us. Summers Geithner and Rubin laid the foundation for this immense transfer of wealth and destruction of the middle class. Gold is up to $1,300/ounce. It's not that gold has gone up but that the value of the dollar that has dropped in relation to it. Our dollars are now worth almost 40% less than what they were at the beginning of this infamy. Stabilization in prices means the dollar is worth less. Where will it end? The Fed now wants inflation to keep prices up and that means printing more money. For perspective, your $1,000,000 home is now worth, in gold, $600k. Even if homes prices climb back up to $1,000,000, in buying power it's worth less than $600k. We're living in the land of illusions where our money is based on a confidence scheme run by the Fed.

waynoo: (September 29, 2010 11:06am)

Well you guys I love the new 2010 good faith est. Think about the Lions on the plains of Africa. They confuse the prey. They circle them and then when the pray runs, the other lions come in and kill them. We confuse the cliets so much that they become prey. We show them a three point loan fee, and then say, "Don't worry the lender XYZ is paying that for you, see....? They sign the forms, Oh did I say forms signed, where do they sign the 2010 Good Faith, I must have missed that.

Utah Mortgage&Real Estate Guy: (September 29, 2010 11:02am)

I can understand how some may feel that a Loan Officers credit score should have nothing to do with their loan production. However, most, or should I say, ALL, Corporate America has been pulling credit for any substantial job, for about 10 years. And no matter what you read or hear, your credit score is a reflection of your personal and professional behavior. In this economy, that perception can be skewed because almost everybody is dealing with some sort of debt management problem. If you have been in the business long enough, you know exactly what I am talking about. Borrower's spending habits don't change. These economic woes might just actually be a good thing; it will teach everybody what it is like to SAVE money again, not just keep spending like the boom time is never going to end. So in all, YOUR CREDIT SCORE WILL and DOES affect the perception of your personal life and your professional life. Although, I agree that in these economic times, credit is not the best JUDGE.

Roger.R.Martinez: (September 29, 2010 10:19am)

Ha ha ha ha.... great daily fellas. (And...shhhh... just to keep your advertisers happy, it's "over there.... to your left"" not "to your right" You know how advertisers can get. Keep up the work on not reading the cue cards, it's better but a slippery slope to old habits, please keep working on it... watch your local newscasters who are reading but looking into the camera.... you can do it. Thanks for the daily energy.

JML: (September 29, 2010 9:54am)

RE Paula - I agree with Owl Tree's response - shouldn't our lawmakers be subject to the same standards, as well as law enforcement, educators (who wants a financial deadbeat teaching their kid?), etc. Where do you stop? If someone had an accident, or made a financially unwise decision at some point, are they no longer fit to work in the career they have had for the last 20 years? If that were indeed the standard, the USA would be a very different place. But that is not the standard applied to the public at large, so it would be criminal to apply it to one group of professionals.

Evil Genius: (September 29, 2010 9:45am)

Wall Street Gambling: http://www.youtube.com/watch?v=A6hQoP6OTa0 Wall Street Shadow Market http://www.youtube.com/watch?v=0Y9A0C45KZI

Evil Genius: (September 29, 2010 9:31am)

OWL: Love the 9:25 post! Disconnect hits the nail on the head.

JoeParsons: (September 29, 2010 9:28am)

Even the new GFE doesn't really protect the consumer from an unscrupulous loan originator. If I wanted to juice my profit at the last minute, I could simply put in my 3 point loan fee in Block 1 and put the credit to the borrower at 3 points for the original disclosure. Then, at closing, I tell them, "Terribly sorry, but the market went the wrong way before I could lock. Your rebate from the lender will be only one point, not three." Of course, it's sneaky and unethical and would guarantee no referrals, but it is legal. Someone mentioned one of the REAL culprits in today's problem: the rating agencies (S&P and Moody's). They rated these mortgage derivatives (CDOs) AAA, which means--get this--there is a one-in-ten thousand likelihood of default. I am puzzled why no one seems to be taking aim at them. Or talking about Sen. Phil Gramm, who sponsored Gramm-Leach-Bliley in 1999. That effectively neutered Glass-Steagal, allowing investment banks to trade in these exotic mortgage securities.

Owl Tree: (September 29, 2010 9:25am)

One last comment....do the regulators ever talk to loan originators about the process? Has there been a single loan officer that has been consulted since the shit hit the fan in 2007? Talk about a disconnect between Wall Street and Main Street.....the dopes in DC should be forced to spend a week following me around. They can watch as some mangy dog humps my leg while I try to explain the counter-intuitive good faith estimate in someone's kitchen....and then, they can play "guess how much someone's house is worth", without being able to contact an appraiser.....next, they can play "sit on your hands for ten business days" because the customer requested an extra $5000 to handle a tuition bill....and finally, they can play "wait for the wire to hit" with a title officer than makes Marge Simpson's sisters look polite.....THEN maybe we'll see the process improve.

Owl Tree: (September 29, 2010 9:19am)

The entire application package can be limited to perhaps 12 pages.....#1 Loan Application....#2 merge the Good Faith and Truth in lending....#3 condense the federal disclosures....#4 condense the state disclosures....#5 eliminate all lender-specific disclosures (Fannie/Freddie/FHA should grant safe harbor under items #1-4). Boom, done.

Owl Tree: (September 29, 2010 9:14am)

RE: JOE PARSONS....."Byzantine" is a perfect way to describe the current situation. It would be refreshing if the regulators asked, "how can we make the loan process quicker and cheaper for the consumer?". Judging from what I've seen rolled out, it appears that the question has been, "Dear Jamie Dimon, can you tell us how we can increase your market share?"

Owl Tree: (September 29, 2010 9:12am)

RE: PAULA....on one hand, I can understand the argument that a loan officer should demonstrate some personal financial discipline. However, I think in this economy, it's unrealistic to assume that loan originators don't face the same sort of problems that have impacted millions of other americans. I'm sure there are some great loan officers that have spouses who are out of work, family medical bills, etc. In my opinion, it's just another component of the witch hunt that has been going on since the mortgage meltdown. I suppose it's easier to check an LO's credit score than it is to figure out how the the giant ratings agencies graded toxic loans as "AAA".

naperloanguy: (September 29, 2010 8:54am)

How about this... Drop the stupid TILA disclosure. Eliminate it. The new GFE covers the interest rate and costs. Nobody gives damn about APR anyway. APR just confuses people. Borrowers can compare loan offerings by using the GFE which really eliminates the reason for the TILA disclosure form. TWO TO ONE! The New GFE is not perfect, but we needed something to help police the knuckleheads in our industry from changing fees at the last minute. Tweak the GFE and we are done with that mess. I am happy that all the used car salesmen and the pizza delivery boys can no longer be a part time loan officer. Now let's get rid of the riff raff that work for banks. The next needed step is to make all the bank employee mortgage originators pass the national and state tests like mortgage brokers and mortgage bankers have to do.

Paula the Realtor: (September 29, 2010 8:54am)

I am curious what everyone thinks about loan officers being required to have 'acceptable' credit scores to be licensed to do loans.

Evil Genius: (September 29, 2010 8:41am)

How about a standard QC checklist that a broker or lender must acknowledge and agree to that covers all this BS anyways. The QC including zero fraud tolerance done on the originator level can begin to improve quality. And then enforce it on the broker. Crap in, crap out! Responsibility needs to be put at the beginning of the process. Common sense has escaped us all. We've been taken over by redundancy. And on my 1003, I will not enforce the HMDA Section X for New Generation Lending. That is a pure case of Big Brother. http://realestatemarbles.com/newgeneration includes NMLS fodder!

JoeParsons: (September 29, 2010 8:24am)

I agree that our current regimen of redundant, Byzantine disclosures is ridonculous. I mean, who THINKS of this stuff? But file bloat is not so much attributable to the required disclosures as it is the amount of documentation of income and assets required by underwriters today--and even though most lenders claim to be "paperless," many (including one in-house lender for a very large mortgage broker) actually print out a hard copy for every document sent to them electronically. I recently sent a 58 page set of bank statements to papertrail a year's worth of rent payments. I highlighted each payment and wrote a helpful cover letter. The underwriter told me she was wading through every page, and needed to know where the rent payments were. I told her she could refer to my cover letter and look at the highlights in the PDF. She had seen no cover letter, and the highlights didn't come through when those pages were printed. And we wonder why some lenders are three weeks in UW?

HoosierDaddy: (September 29, 2010 8:07am)

Great show today! Had to comment on yesterday's Remax Gold Show though. You mentioned there is no risk based pricing on FHA down to a 620 score. Every rate sheet I have for multiple investors has a price hit now for 620-639 scores and some have a hit for 640-659. I just want to make sure that we are keeping realtors informed with the correct information. These costs have to be passed onto the consumer.

RCMCVegas: (September 29, 2010 8:00am)

You guys are funny as hell. Great way to start the my morning. Tim & Liz (Don't have a snowballs chance in HE--.

Chukster: (September 29, 2010 7:12am)

Again, as I said the other day, the review process of companies is greatly flaud. If a reviewer (persons that review loans, before they are sold) are fired if they find to many mistakes.

kkric: (September 29, 2010 7:05am)

Pacostacos - Have you bought a car in California?? The form is literally 8.5 x 36!!!

kkric: (September 29, 2010 6:41am)

Hey, that Fannie Mae "check along the way" program is really helping. The divorce decrees we have to provide to prove that mom isn't ordered by the court to provide child support for her 30 year old children makes for so much better loans. The whole foreclosure problem could have been avoided just with this one rule.

pacostacos: (September 29, 2010 6:39am)

Perfect solution to 2 into 1 ---- MAKE THE FORM 8.5 x 22!!! Where's my prize?? Another great idea is 7 minute abs where we promise just as good a workout as them 8 minute folk.

Fl Mortg Lady : (September 29, 2010 6:38am)

OK, amending remark re: round table with Timmy.... "with those in the industry (that would be us in the field taking loan apps!)" sitting with him at round table, along with frustrated realtors and customers to find out how to streamline paper! The higher up ya get, the less apparent the confusion on the originator level is!

timp: (September 29, 2010 6:31am)

Good show today. I doubt that the redundancy department of redundancy will cut ANY paperwork, more likely to see the stacks get bigger and bigger. One of our settlement agents used to offer to scan and email signed docs to borrowers after the closing. Now their scanned files are so big they can't be emailed anymore. 3 forms to sign saying this will be your primary residence? 1 form to sign saying if you don't pay your mortgage, negative information will be reported to the credit bureau? Really?

associatebroker: (September 29, 2010 6:21am)

Aha! “Little Timmy®” strikes again. Just think, maybe someday he’ll go back to Goldman (one can only hope).

bigmac: (September 29, 2010 6:05am)

Great visuals as usual!

GaryP: (September 29, 2010 5:21am)

You mean there is a problem with documents like the Right to Recieve Appraisal Disclosure that says that you have to request a copy of the appraisal within 30 days, in writing. Hmmmm... isn't that the same appraisal, that due to HVCC, we have to deliver to the buyer before we can close? Do you think that might be just a little redundant? Do you think that Timmy and Liz might catch that? Nope, me either. What about the 3 or 4 documents that say that borrowers can't be discrimated against because of age, sex, religion, yada, yada, yada.... Or what about all that fine print on the HUD addendum that says the exact same things as the other disclosures? Do you think that Timmy and Liz will get around to that too? Nope, me either. As I recall, Congress once passed someting called the Paper Work Elimination Act. I guess that has been reduced to a historical footnote now, at least in the mortgage world.

linda-joey: (September 29, 2010 5:09am)

i chuckle every time I take and FHA Loan app - the borrower has to sign in 5 or 6 different places they I will not discriminate against them, Ridiculous! And if they check "I do not wish to provide" I re required to uncheck and complete....How is this productive?

KKS: (September 29, 2010 5:04am)

such humor! the Govt decrease paperwork and stop killing the raintree forest? BAHAHAHAHAHA!!!! seriously, maybe we should look at why so many agencies have overlapping laws and consider consolidating all of these rules, regs and laws into one nice little package. then, and maybe only then will the paperwork blizard stop. Thanks for a great morning laugh.

HumblePie: (September 29, 2010 4:41am)

Timmy must be a fan because as of 7:30 a.m. est, 1% or about 1/104 voters actually think the government will do what they say they will!. I guess its nice to know someone is still an optimist.

njloanman: (September 29, 2010 4:26am)

you have a problem with the books we now are required to deliver to clients that are called loan applications???

Fl Mortg Lady : (September 29, 2010 2:03am)

Top notch with humor this am, guys! :) We need a round table with Timmmmaaaaaaaahhhhh!