Trouble Brewing for BofA - 01.06.11 | Real Estate News for Real Estate and Mortgage Professionals

Swarm The Banks: (January 06, 2011 11:39pm)

Psn8ldy, It's comical to be seen as defending the banks when I run several blogs that find stories about unethical banking practices. My point was that the analogy given about Dahmer was not exactly spot on. It was a good analogy but the difference is Bank of America is a huge company and Dahmer was one person. Yes Dahmer checking his own home if they knew they did not do anything would be somewhat suspicious (unless he had fear of planted evidence), but B of A is probably reviewing what the left hand did, what the right hand did, and so on. Now what they do with that information is what matters most, and the odds are they won't use it to find themselves guilty, and that is where the problem lies.

GODLIKE: (January 06, 2011 7:12pm)

ANDERS02 I wish to God we had a Justice system, but we don't we have a LEGAL system. That does favor the billionaires.

GODLIKE: (January 06, 2011 7:11pm)

Thanx guys for the iMovie info. I have iMovie but I also have Final Cut, unfortunately it's an older version and I'd need to update it ($$). I was betting that's what you used. I'm trying to get all my ducks in a row before I pull the plug on the $1 for a month offer so that I don't waste it all on the stuff I could have had in place before. JOE PARSONS I'll check on the info you gave me plus the Lynda.com info too.

Tedmagnumpi: (January 06, 2011 4:50pm)

Bottom Line? The Big Banks suck. They control us all and can do whatever the hell they want and we all suffer. Why the hell did the Taxpayers help them? B of A, Chase, and Citi Bank, should have all disappeared in whole. It's called survival of the fittest and they were and are not fit at all. I have a live radio show each day on KTKZ 1380am in Sacramento and I rip these turkeys almost everyother day. Well, deserved too.

mmt110: (January 06, 2011 3:41pm)

Appraiser Micro: Some lender AMCs pay full fee to the appraiser and add to their UW fee instead. I wish the AMC did not exist. Until HVCC is overturned, I will use the lenders who AMCs use the local only appraisers and pay the highest fees. The 10+ year experience is not necessarily a good appraiser result. Had a 20+ year appraiser complete a report on one recently and had the sqft completely wrong on an FHA inspection with comps completely unacceptable to the lender --- the AMC ordered and paid for a new appraisal. 2nd appraisal by a 20 year appraiser resulted in several different comps and accurate sqft. It's robbery that appraisers are asked to accept anything less than usual and customary fees for completing a report. An AMC taking a fee for handling the order is somewhat in line, but not taking half the fee and paying you below normal amounts. I hope HVCC is repealed.

W.R.Buchanan: (January 06, 2011 2:29pm)

You know guys: all of our whinning and bitching about how the banks a screwing us all maybe much ado about nothing. also this Wikileaks yahoo may end up being the savior of this country. I hate to go out on a limb here, but what if his leaks ended up showing everybody exactly what we've been saying along. Only more people will take notice form this source. I personally don't give a shit if Hildegard called some ambassador from "I don't give a shit", some name, or is getting a little on the side. This info has no value to me. But if they have documents that prove wrong doing on a National Scale. I say bring it on. I'm all for squelching anything that might get our troops killed, but if it is something that will get some of these banksters killed I say "lets see it!" Bring it on!!! Randy

fgoncher: (January 06, 2011 2:22pm)

After 15 months of waiting for NY State to approve my license, I called today and told I was offering my story to ThinkBigWorkSmall. About 3 hours later NMLS was updated with my approval. I guess the threat of ending up on Frank and Brian's ______ list worked. Thanks guys

Valueboy: (January 06, 2011 2:00pm)

JCOLLINS: The "current rules" have no effect on appreciation or depreciation being included in appraised values. Data and the honest use of it will effect that. Unfortunately the "current rules" wiped out the most experianced appraisers in the industry, and it's the experianced appraiser who understand markets and can show reliable data and logic that will prove values are appreciating or depreciating. However, without experianced appraisers being paid a fair fee for a fair appraisal, your stuck with the mindless losers being used by AMC's, so in that sense you're right, the current rules do effect appreciation.

anders02: (January 06, 2011 1:24pm)

I am so sick of these banks doing whatever they want, when they want, how they want and with whom they want and getting away with it. The American justice system is suppose to be blind to wealth - just because you are a billionaire - that doesn't give you the right to kill someone. The same applies here! Just because they are a large bank they should not be excluded from jail - serve the time just like the average american would should we commit the fraud they are!! I wonder how many people have been so financially pressured by these cheats and liars that they have committed suicide? Bully someone to that point without the wealth and you go to JAIL! I wonder what would happen to me if I were to get food stamps, then fly around in a corporate jet?? THEN after that, file thousands upon thousands of false documents in court? They are no different! Taking government money because the poor things are dying financially while living it up large! They need to be exterminated out of existance.

frankgaray: (January 06, 2011 1:18pm)

Godlike - We use a MAC, Final Cut Pro, and for keying DVMatte Pro.

uscore1: (January 06, 2011 1:09pm)

BofA is in essence Goliath. The organization is too big and broad for any one person to feel accountable for how poor their business practices have become over the past few years. What they need is an old fashioned tail whoopin' to humble them from thinking that they're beyond reproach.

JoeParsons: (January 06, 2011 12:28pm)

@godlike: I don't use iMovie, but there are a bunch of free resources on the green screen topic: http://www.iclarified.com/entry/index.php?enid=2984 has a quick one, as does YouTube: http://www.youtube.com/watch?v=eP-svi0XQks.

JoeParsons: (January 06, 2011 12:19pm)

@Mike8307: Yeah, that Act (also known as Gramm-Leach-Bliley, sponsored by Sen. Phil Gramm, R-TX) enabled most of the shenannigans that got us into this mess. Many people refer to Sen Gramm as "the father of the mortgage crisis." Yeah, Clinton signed the bill, but he was facing a pretty aggressive Republican-controlled congress.

GODLIKE: (January 06, 2011 12:02pm)

FRANKGARAY what do you use?

frankgaray: (January 06, 2011 12:00pm)

Godlike - my understand is that the latest version of iMove can handle green screen. Lynda.com is the place to find out.

jcollins: (January 06, 2011 11:27am)

this is to all Appraiser. I have asked this question to many Appraisers and so far noone has a good answer. How do we get appreciation with the current rules?

Mike8307: (January 06, 2011 11:22am)

And Finally... if you want to go back to see the real thing that started this whole ball of wax melting down.. go back to 1999 and the repeal of Glass-Steagall Act. the Financial Modernization Bill signed by Bill Clinton, passed by a Rep Congress. As usual, government legislation is opposite of its name. The Modernization might send us back to the Stone Ages. The effect of that bill was to blur the lines the previously existed between commercial banks, savings banks, stock brokers, insurance companies, investment bankers, and what they can put their assets in. Wall St. was delirious when this passed but I remember sitting at my desk and saying 'nothing good is going to come of this in the long run'. I'm not a fan of regulation, but removing this regulation was a bad thing. Hindsight is 20/20, no? And what in the world are the Brits thinking?????

Jimbeam: (January 06, 2011 11:17am)

Excellent story on the pint. We need to do something about this pint mess. 300 years and it has worked fine.

Jimbeam: (January 06, 2011 11:16am)

Excellent story on the pint. We need to do something about this pint mess. 300 years and it has worked fine.

Mike8307: (January 06, 2011 11:15am)

... (continued from post below).. so yes.. the FED has much more to fear than BoA from all of this. As for BoA assumed guilt? This is still America (innocent until proven guilty) and only a fool wouldn't lawyer-up if they knew an investigation was going to be launched against you, or in this case, somewhat damaging documents were going to be made public. Mostly because many of the docs could be taken out of context and misconstrued by a public who really have no clue as to how a bank (small or large) operates. Bank of America will not implode for the same reason, GM wasn't allowed to implode. For the same reason a buyer was found for Merrill. The bank's name alone would have resounding effects around the world. Think of the headline.. Bank of AMERICA goes belly up.. What does that do to the collective world psyche? They will never allow that to happen. The repercussions of that would be horrendous.

Mike8307: (January 06, 2011 11:08am)

Okay.. a couple of points here, will probably extended to a few postings.. BonoVox hit the nail on the head. The FEDS have more to fear from a Wikileaks dump of BoA docs. I spent 25+ years on Wall St in merger and acquisition operations. Every merger of public companies must go through DoJ review under the Hart, Scott, Rodino Act (HSR) to check for anti-trust consequences. (as well as the European Union counterpart for companies that do business in Europe) XM-Radio and Sirrius merger took 18 months to clear HSR review. Bank of America and Merrill Lynch took 24 hours. Is that sinking in yet?? Do you not think that a phone call was made to Lewis at BoA from the FED and Treasury saying basically. "we can't have the largest stock broker implode. We (the US Gov't- taxpayers, in reality) will cover all your loses. BTW, this conversation never took place." So BoA acquires Merrill, shareholders have a cow, Lewis gets booted (with a fleet of moving vans to carry his bonuses), ....

mark.green: (January 06, 2011 11:03am)

What's with the GRIZZLY ADAMS look?! LOL

Bryan/MortgageFinanceGroup: (January 06, 2011 10:53am)

I hope this sinks BofA for good, and hopefully takes Chase with it.

brit1: (January 06, 2011 10:49am)

Brian - excellent 3 time use of the the term 'bollocks' (British spelling). In fact Frank, in reply to your query about why States should get the fine $$$ and not the individuals harmed - its just BOLLOCKS !!

Bella Broker: (January 06, 2011 10:48am)

Dear Utah Mortgage&Real Estate Guy: In California there are plenty of disclosures about the property, the neighborhood, issues with neighbors, past litigation, including murders, natural deaths on the property but deaths do have a time limit of having to occur within 3 years ( CAVEAT: We always recommend sellers to disclose any deaths because of cultural reasons, you could get into a lawsuit at a later date if left undisclosed, it is not a CA required disclosure.)Realtors don't generally reply on here because lately the slant has been towards the Mortgage industry. I agree, I can't see NAR or CAR mandating a Pending Divorce Disclsoure. A disclosure such as that would make no sense considering it's really is no one's business but the couples and maybe their Agent. Negotiations are tough at best these days anyhow.

Appraiser Micro: (January 06, 2011 10:38am)

Good 1 MMT. But if dealing with an amc, you still got the lowest bidder - no way around it. When assessing an appraisers professionalism, it's all about the reliability of the collateral valuation opinion, not the valuation opinion itself. Cutting corners & reduced reliability is a result of discounting & preferential assignment placement. Boosting values just keeps them on the auto rotation more than the next guy. I can appraise competently anywhere, anytime, as long as I have acceptable mls access. But I can't do it for 50% of the C&R fee. Picking & choosing the appraiser is the problem, it has been for some time. Round robin appraisal panels are necessary to assure an unbiased position. Rather than 10 miles, try 10yrs+, coupled with full disclosure of the appraisers pay. It's been too long that consumers pay through the nose, while the appraiser get's paid scraps.

HI DOG: (January 06, 2011 9:48am)

Hey you guys should go see "Inside Job". That movie shows how corrupt our financial markets have become regardless of which side of the isle you are on. Catch it quick. You'll never see it at a main stream theater. If your in the Bay Area I think the Clay Theater is still showing it.

GODLIKE: (January 06, 2011 9:41am)

So FRANKGARAY you're saying you do use the greenscreen with iMovie? If I know it can be done I'll find the way to do it. www.lynda.com might be the way, right now I'm just trying to see if it's possible.

Divedude: (January 06, 2011 9:40am)

I've been contacted several times in the past few weeks by borrowers that want to know what our appraisal fees are and are furious when they see what they're paying due to AMCs'. That added cost is the by product of an arrogant banking system and the Dodd-Frank bill has never adressed this point directly. This is the type of exposure that we need to get rid of the AMCs' once and for all. They can ignore us but not the consumer.

mmt110: (January 06, 2011 9:34am)

Appraiser Micro: Actually, the appraiser who didn't have a clue came in 30K higher than I expected because they used comps in a different county. The next one this appraiser was assigned on, I requested reassignment and was successful. I do my best to work with lenders who let me dictate using a single MLS only appraiser within 10 miles of the subject property. That prevents outside appraisers from coming in and doing a terrible job. AMCs are the norm for Conventional and FHA loans, so I do the best I can to keep the business with local appraisers. I hope you have lenders and brokers who fight the same fight as you. JUSTFRANK101: From my appraiser friend: "The Appraisal Foundation and McKissock are the two groups that I know of offering online CE courses." Hope that helps you.

frankgaray: (January 06, 2011 9:13am)

Godlike - Your best bet is to go to www.Lynda.com and sign up. It's awesome! That is where we learned everything we know. Super well done tutorials. Go for it.

Bono Vox: (January 06, 2011 9:08am)

The British are having huge problems with "pub culture". I don't think BofA is half as scared as the Fed about these documents.

[email protected]: (January 06, 2011 8:56am)

The British really can't be thinking about messing around with the pint. What are they thinking - I guess they aren't! Must be some corporate bean counter trying to save money, just like AT&T firing the time lady. If you think about it, that's when things really starting hitting the fan when you simply could not call the time lady (popcorn) and find out what time it is!

jcollins: (January 06, 2011 8:53am)

I know some people got hurt by the robosigner. Was'nt MERs set up to by pass the County recorder fees.

jcollins: (January 06, 2011 8:52am)

I know some people got hurt by the robosigner. Was'nt MERs set up to by pass the County recorder fees.

Utah Mortgage&Real Estate Guy: (January 06, 2011 8:49am)

Just wanted to go back a couple of days. I just read through all 125 posts from the Contract Divorce Disclosure (January 4) TBWS show. There are a ton of very intelligent, lucid, and well thought-out (sort-of) answers. It's nice to see all the Real Estate agents actually chime in (it has been a while). I have one glaring question about everybodies opinion about a SELLER's pending Divorce disclosure? CAN ANYONE (INLCUDING AGENTS) TELL ME OR SHOW ME A LEGAL DISCLOSURE ON A REPC THAT HAS ANYTHING TO DO WITH THE SELLER. That's right, you can't. ALL THE LEGAL DISCLOSURES HAVE TO DO WITH THE *****PROPERTY*****. Not the seller, not the transaction, not the neighborhood, etc, etc, etc, etc. So based on most (if not all) current State Approved REPC's. I cannot see NAR or any other managaing/regulating entity even considering a Pending Divorce Disclosure. Also, Utah only requires MURDER if specifically asked by a potential buyer. Paranormal activity is not recognized as a REAL disclosure item.

GODLIKE: (January 06, 2011 8:32am)

Finally got to talk to Katie yesterday about signing up for your service but I forgot to ask one question. How do you use Greenscreen with iMovie? Your seminars talked about using the software that comes on your computer so I'm presuming you are still using it. I don't need to buy something else do I?

george: (January 06, 2011 8:25am)

Hey Guys! We need to get representation in the debate on Housing Finance. We don't appear to be repressented on the list of people contributing to developing the structure of replacements for Freddie and Fannie. Take a look at this Reuters article. Lets lobby to get some of our guys on the list of people from whom input is being obtained. Doesn't look like anyone from our industry is in the mix yet. Check it out: http://www.reuters.com/article/idUSTRE7045F620110105 We certainly should have a voice in this debate as should our Realtor and Appraiser friends.

GODLIKE: (January 06, 2011 8:20am)

TBONE no I don't work for BofA nor would I ever. I've had my own shop for 26+ years. I think it's wonderful BofA might get theirs. And DBLAKELY ANTI-TRUST? That's soooo last century. They now encourage monopolistic practices. To HELL with the little guys.

kafprocessing: (January 06, 2011 8:19am)

When BoA bought Countrywide and Merrill Lynch they were trying to emulate Chase's takeover of Bear, Sterns. Unfortunately, the assets have proved to be crippling. Only the Mark to Market change is keeping BoA from exposing their true balance sheet. Next shoe: Wells Fargo bought Wachovia which had swallowed Golden West and World was LOADED with option ARM's (remember "Pick-a-Pay"?. Wells is also using MTM to hide the huge losses anticipated from failures of the recasting Option Arm's. The there's Citibank...

Psn8ldy: (January 06, 2011 8:19am)

Swarm the Banks, Please!! What you are saying is the same old corporate and government plausible deniability defense. Bull***t. If it happens on your watch, you should be aware of it, and if you're not, then you get to endure the heat. And, if both you and your crew is running a clean ship, there would be no need to look for piles of crap. B of A needs to be taken down, or at least taken apart.

Rob in AZ: (January 06, 2011 7:47am)

One of the things Orwell mentioned in "1984" was the totalitarian goverment of Oceania had outlawed pint glasses in pubs.

Appraiser Micro: (January 06, 2011 7:36am)

mmt110 - you're dealing with the lowest bidder. Still finding that high value in amc services? Read this regarding proposed changes. Those stupid discount appraisers put the better half of appraisers out of business nationwide. You asked about a solution - they are proposed in this professional letter - www.appraisalinstitute.com/newsadvocacy/downloads/ltrs_tstmny/2010/AI-ASFMRA-ASA-NAIFAonIFR-Final.pdf

JUSTFRANK101: (January 06, 2011 7:29am)

mmt110.......... quit kidding yourself you don't have any friends

mmt110: (January 06, 2011 7:27am)

Divedude: Hope you're right on the breaking up of the too big to fail institutions. Wonder how Wells will fair with their recent acquisitions? The recent news on Wells stating that 30% down may become their norm for mortgages will be an interesting twist. I can see rewarding someone with a slight decrease in note rate when 30% down comes to the table, but 30% down as an across the board norm would devastate the whole industry. Would this be just Wells beefing up their portfolio after years of super sketchy subprime lending (little to no verification of assets on their subprime loans)?

Paulsmoney: (January 06, 2011 7:21am)

While some big-bank actions are 'running under the radar' (ultimate take over of real estate and real estate lending with the help of bought-and- paid-for legislators) an occasional blip hits the screen of public awareness. When it does, who monitors and meters out the fines? Those same bought-and-paid-for legislators and government crones. I've been accused of tilting windmills for years when it comes to banker's self-serving game plans. There is no such thing as a consumer- friendly or mortgage broker friendly wholesale avenue or conduit with banks. Wake up

mmt110: (January 06, 2011 7:19am)

Speaking of appraisal CE (and I hope there is an online CE for appraisers, JUSTFRANK101), one of my appraiser friends said there was another appraiser in her CE class that asked how to appraise homes in my local market. The odd thing: that appraiser has already submitted reports on my loans. Now they admit they do not know how to appraise homes in our area (no wonder I thought this appraiser had no clue about appropriate comp location when these reports came over). Is there a way to address this issue with the AMCs and report that this appraiser, admittedly, has no clue on how to appraise in our area? This appraiser covers 3 MLS regions that covers a driving distance of 4 hours from end to end. In this case, how is it possible to intimately know all of the areas you're supposed to as an appraiser?

T Bone: (January 06, 2011 7:17am)

Hey Godlike! Cat got your tongue? Don't you work for B of A?

mmn: (January 06, 2011 7:07am)

Someone needs to bring BofA down or at least expose them for what they really are. Can't help but wonder if the 4/1 change in how brokers can get paid isn't driven by some of the "bigs" (BofA for one)that are ultimately trying to weed out all competition.

deblakeley: (January 06, 2011 6:51am)

If BOA is too big to fail, maybe some wise person at SEC would invoke anti-trust action and break them up like AT & T was many years ago. BOA is it's own bubble about to pop. Breaking it up into smaller pieces would benefit everyone. I am not an economist but I play one on TV.

frankgaray: (January 06, 2011 6:44am)

Nice one Skip.

Skip: (January 06, 2011 6:41am)

WALL STREET - WALL STREET - WALL STREET; oh smell the mild aroma coming from the fresh harvest of a plentiful late winter musty dollar bill crop.... ya think Wiki links just might be the "tool of choice" that the street guys are now using to go "short" on BOA after they engineered a "long" profit using the Paulson, Bernake, et al tool that forced the BOA buy of CW???... and, doesn't one find it interesting that Merrill is still in the game and hasn't been targeted too???... you think Merrill might show some big gains this next quarter???

JUSTFRANK101: (January 06, 2011 6:14am)

Good Morning, Does anyone one know, if there is an Appraisal Group or individual putting on Webinars that provide credits towards continuing education? We are 100 miles away from anyone we are aware of that puts on classes. It may be good to find something on line we may attend and receive a certificate of completion. It is 2011 one would think Webinar Continued Education Classes would be the “Class Act”.

rbsplace: (January 06, 2011 5:54am)

I was recently in Detroit at a meeting with some mid-level people from B of A. They are as arrogant as ever and have no intention of changing anything. They admitted they are so big they even often have difficulty dealing with different departments in there own bank. They basically said you're just going to have to deal with this inability to get things done efficiently because you have to deal with B of A and that's the way it is. WOW! They have obviously bought and paid for everyone they need to keep up the good work. Don't look for changes soon.

Real Estate Nate: (January 06, 2011 5:06am)

While I can agree that it looks like BOA may have done something wrong, I think we need to see the evidence before we convict them - even in the court of public opinion.

Divedude: (January 06, 2011 4:21am)

I predict that the process to split up the too big to bails will begin in 2011. The adversity of 2010 has made us stronger and smarter while the evil empire has only polished it's ways of deception. They will be exposed and we shall be in harmony with the consumers that bind our universe together. May the force be with you!

Swarm The Banks: (January 06, 2011 1:46am)

Excellent point about why should the states benefit from the pain suffered by homeowners. If two sibling get in a fight, can they sue local government for their injuries? Another example of that type of "government logic" is when firefighter A tricks firefighter B into eating dog food, and firefighter B sues the city and is awarded 1.5 million dollars in damages. Shouldn't the award come directly out of either the firefighters pension or the firefighters operating budget? Why should other departments and other services suffer for the behavior of someone not of their ilk? Great points you guys bring up.

Swarm The Banks: (January 06, 2011 1:42am)

There was one flaw with your Jeffrey Dahmer example. What if you were the owner of a business and the police said you or one of your employees was a suspect in Dahmer like actions. Wouldn't you want to do an investigation to see if one of your employees has done something you knew nothing about? just sayin.