NY Fed Suing B of A

Click on the title to link. Remember how we said just this morning that the whole foreclosure fiasco that came out the last few days was only the beginning? And that just because B of A and GMAC went back to "foreclosures as usual" did not mean the dominoes where done falling? Well, here's the next domino...

More on the Forclosure Mess

Click on the title to link. This is a great article by Jim Jubak about the foreclosure fiasco with banks right now. Like we said before, it is going to be really interesting to see what comes of this. Just because B of A and GMAC pulled their "holds" on foreclosures today does not mean it is business as usual. This article does a good job of looking into the back end to show you the real problem at hand. Bank may be in big trouble. Of course, they are cash rich right now because they have been storing away the "stimulus" money they received instead of actually lending it out.

Do Banks Have The Right To Foreclose?

Click on the title to link. This will be an interesting story to follow. Not sure anything will come of it, but watch and see...

How To Choose A Mortgage Broker

Click on the title to link. The Mortgage Broker industry continues to be hit hard by folks who just want to see it go away. It begs the question, "Why, and who is behind it?" The simple answer is that the banking lobby is heavily behind it because they want the competition illiminated, especially as our government pushes forward to also rid us of the small, local bank (they are clearly pushing for a few huge banks where the government can interfere). Enough for now about our political bent...

This article sounds good in the title, and has some good tips in the body also, but, once again, completely misses the overall point. It is funny, and amazing, to us how these are written from such a biased stand point. Why is it that the questions posed in this article should be asked of a Broker and not a bank? Do you honestly think that a bank has your best interest in mind, or more so than a Broker? You should be asking these type questions of ANYBODY you work with for a mortgage, whether bank of broker.

Here are some examples pulled from the article:

1. "Does this person speak to me in plain English? Or are they using a lot of jargon? If you can't connect with a mortgage broker, then that's a red flag." Well at least we all know now that this does not apply to a bank. Are you kidding me? So if the bank if speaking a "foreign" language and you cannot connect then it is OK? No wonder we had a mortgage debactle with people writting articles like this.

2. "The best brokers act like financial planners, Guttentag says, taking into account your total financial situation and goals when trying to match you to a mortgage." Yes, and Amen. Look at all our previous posts and you will see this is what we have been saying from day 1. But, once again, what about the banks? If you think for one minute any Loan Officer in a bank is working with this in mind then you are completely delirious. They get paid whether they see you ever again, or whether they do a good job or not. If we don't treat you better than anybody before, and earn your referrals, then we have no business. Whose more motivated to work with you as described here? Obviously we are, the "worthless" broker.

The bottom line is this, banks and the liberal media want you to believe that brokers are more risky. That is funny. We continue to serve people the same way we have for over 8 years. Why are we still here? Because we know how to treat people, how to serve them, and it drives us insane if a client is not a raving fan. You think a bank thinks like that? Think again. If this article were unbiased and well researched and written, the title would be "Who To Trust With Your Mortgage". Whether you are working with a bank or broker, you had better be working with somebody you trust (and the institution or company is not what you should be trusting).

This brings me to my final point...why on earth would you ever work with ANYBODY who you were not referred to? You can ask all these questions until you are blue in the face. And we guarantee you that anybody can fool you into thinking they are something they are not becuase they know the lingo. If you work with anybody other than somebody you were referred to by a trusted friend, family or co-worker then let the dice roll because you are gambling. If that if for you, then we are not your company. If it is you then welcome home.

Bank Appraisals

Something we keep running into is the fact that bank appraisals are coming in lower than they are for us. All we can conclude is that banks are so conservative now that they are only using appraisers that are ultra conservative. They all have to be ordered through the stupid HVCC process. But we, none the less, continue to see it. Case in point, we just closed on a client who had a Bank of America appraisal that came in $82,000 lower that it did for us. Again, it is being ordered through the same system. But the banks are doing something because they continue to come in low. Just another reason not to work with a bank.

Why A Meltdown Could Happen Again

Click on the title to link.

Bank Implosion Ahead?

Click on the title to link.