Foreclosure Trustees

Click on the title to link. A foreclosure trustee is basically somebody or a company who is in "charge" of the foreclosure. The faster they do it the better because then they get more "business". As a result, it can be cut throat.

Top 10 Scams of 2010

Click on the title to link. Just thought this was an interesting article for all of us to be aware of because many of them I would imagine are alive and well.

Is Mortgage Shopping Safer?

Click on the title to link. This article says that mortgage shopping is getting "safer". Is that true? Well, maybe a little bit if you gauge "safe" as less junk fees. But for those of us who have always operated in an honest, trustworthy manner it is no different than before. Regulations are through the roof, which has actually made things worse for you, the borrower. But it has shored up scrupulous fees.

But keep this in mind, government regulation is not going to dictate that people serve you well. It completely ignores the fact that there are still a lot of people in this business who could not serve people to save their life. So is having a miserable process less likely now? No, because there are still people in this industry who do not care about you. They are in it to make a living.

Bottom line...be very careful to think that increased regulations means you are going to have a smooth experience. What ensures that? Working with people you know and trust, or at least working with a company that was highly recommend by those you know and trust. The only way for any company, including us, to ensure a smooth loan is with internal, defined systems. Anything short of that will only ensure either failure or mediocrity. That is not acceptable (at least not here).

OK, We're Not Perfect...

We had an "incident" yesterday that made us think we should blog about it.

We really have worked hard to build a business based on trust and honesty. We never have claimed perfection, but always strive for excellence. That does not mean mistakes are not made, but it is a reflection of how we are going to handle those mistakes. We are never going to make excuses for mistakes we make. We are going to admit those errors and aggressively pursue any way possible to make it right.

Yesterday, upon reviewing the HUD for a closing the next day, we realized that we forgot to change something on the loan for the borrower that we had said we would. It was no minor oversight on our part. So what do you do at that point? Well, you don't start making excuses. You admit what you did to the client and tell them what you are doing to rectify the problem. Then you follow through and get it done immediately.

This is what we did on this file (and any others we have messed up on). True client focused service is often most reflected in how you handle adversity. We strive for nothing short of excellence in this and all areas.

Here is an email we received from the lender regarding the handling of this particular issue:

Thank you! There are so many people out there who (in the same situation) look for (invent) any reason to place the blame on the lender, get upset, and demand that we rush it. This really makes a bad day for everyone involved and inevitably causes delays in underwriting and closing.

Therefore, I wanted to let you all know how impressed I was with how Kim and Brian handled the situation given the fact that the goof was on your company’s end. She admitted it upfront and Brian was there to send everything to me as soon as I needed it. I know there was some panicking but regardless, you all were very polite which gave me time do what I needed to do to . You have no idea how much I appreciate that so I wanted to take a minute to say thanks as well.

We absolutely hate it when we screw up. But when it happens, and it will happen, we are going to do all we can to make people so happy with us that they just want to tell others what we did to fix the issue. We trust this is the case with this borrower.

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.

Banks Halting Foreclosures, States Investigating

Click on the title to link. This is really going to be interesting to see what comes of this. Banks are under tremendous scrutiny for their foreclosure practices, and states are now launching their own investigations. We are not sure exactly what may come out of this; it could be nothing. But these are interesting developments. Will foreclosures stop altogether? Doubt it, but...

"Sorry, No We Can't Lower Your Rate"

Huh? Here's another example of over-regulation by a government. We recently had a client who was purchasing a house. A couple of days before closing rates really dropped to where we could have gotten them a lower rate and, consequently, a lower payment. However, we could not do it because we now have a regulation where we cannot change the rate without there being a 3 day period before you can close on the loan; this includes lowering the rate!! Since this was a purchase, we could not do anything because the sellers would not budge on the closing date. So our client lost out on a lower rate and payment.

Make you mad? It should. It's not the first time this has happened for us. Now write your congress folk and tell them to fix it.

Mortgage Relief? Hardly.

Click on the title to link. This is another article very similar to the one we posted previously about how mortgage "relief" is really releaving few. It is worth another look, so check it out.

Property Tax Lightning Update

We just received this email from Mark Boitano. He is one of the main State Legislators who has been fighting this issue. As we read through this we were reminded of several things:

1. Our government (both State and Federal) continues to demonstrate an inability to project what consequences will arise from their half thought out, uneducated decisions. Shame on every one of them, and shame on us if we put up with it.
2. Our government continues to demonstrate a slowness and cluelessness on fixing the problems they created in the first place. As we always say, "You can't help stupid."

That said, we credit Mark for his persistence to try and fix something that was clearly bad, unfair, and unwise from the start. We can hear his frustration in his note; and who could blame the guy when he has to deal with these ignoramuses daily. Fight the good fight, Mark.

Dear Friends of Tax Fairness,
It's 1:45 am and we're still debating bills on the Senate floor. Tonight, we passed two bills aimed at fixing property tax lighting. One bill is better than the other, but neither of them is the perfect solution. Unfortunately, I don't think we are going to pass an ideal bill. So I've decided to support both bills.

SJC Sub SB 160 - Sen.
Neville. This bill brings all properties to a current and correct valuation within 5-years through a phase up for those under accessed and phase down for those hit by tax lightning. After working on this issue for three years and seeing 12+ bills attempting to fix the problem, I believe this is the best we can do to equalize values. The "correct" fix for those hit by tax lightning is *not* something that the entire legislature will pass (plain and simple).

SB 46 - Sen. Eichenberg. This bill says that beginning in 2011 the 3% cap would stay in place regardless of a change in ownership. This bill does nothing to equalize the present disparity, but would prevent future tax lightning.

These bills passed the Senate and are going to the House. Presently, they are positioned to pass a memorial that says we should "study the problem". Please contact the House and strongly encourage them to act on a tax lightning fix and support Sen. Neville's bill. It is the best bet for a tax lightning fix.

Mark Boitano

More Chase Problems...

Click on the title to link. This just further proves how lenders really do not care about you. As we tell our clients all the time, they are all about #1 (themselves). Shame on Chase to think they can adquately determine whose situation is "temporary". Why should it matter? Talk about missing the point!

The New Mortgage Process

You have probably been hearing and seeing alot in the media about the new Good Faith Estimate, as well as continued rumbling about the appraisal process. All of these processes promise to "protect the consumer".

Well, not only is it not doing that, but it has made the process far worse. If you thought the process was confusing before then you have not seen anything yet. On top of that, lenders are so strict with their underwriting due to continually evolving guidelines that it is making it challenging to get even the perfect borrower through. We have always said that logic does not exist in our business. I am not sure there is another level to that, but it sure seems to be the case as we have transitioned from no logic to illogical.

What's the point? Be prepared. Don't buy into anything or anybody that tells you the process is better. It's not, and you need to be aware of it. But that is why we are here. We are your buffer between sanity and insanity. You can at least find comfort in that.

Mortgage Terms Now In Plain English? Funny.

Click on the title to link to this ridiculous article.
Oh my, where do we start? This could be one of the most uneducated articles we have read in some time. This is just the latest example of part of the problem..people like James R. Hagerty with the Wall Street Journal who write articles as if they actually know what they are talking about. I guess "investigative reporting" is a lost art form these days.

I have a question, has anything the government ever come up with "simplified" the issue? Please, I beg you, let me know if you can think of one. This is yet another example of people coming up with a "solution" who now absolutely nothing (and that is not overstated) about what they are trying to fix. The issue is not fees changing at closing. The issue is that our industry is full of idiots who have no ethics and, therefore, get away with it. How do they get away with it? Because nobody governs the established "laws". So what's the answer, according to the government, well let's create a "simplified" form that the lenders and brokers have to "commit" to. But let's not make them actually show how they get the numbers. Let's instead hide the details and only show the consumer the number the lender and brokers have to "commit" to. Make sense? Hardly.

This new GFE (Good Faith Estimate) is undoubtedly the dumbest, most confusing form we now have to deal with. It is so confusing that we are going to be using the old GFE to explain the new one. We continue to stand utterly amazed at how these dopes in Washington come up with this stuff without so much as consulting people who actually know what they are doing. Is it really that difficult? Instead they have come up with a form that goes from one to three pages, shows no detail, does not give the PITI (Principal, Interest, Taxes and Insurance) payment anywhere, encourages to shop instead of working with people you actually have been referred to and trust, and clarifies one thing...nothing.

So just know that we are here to help walk you through the, now, more confusing and less understandable mortgage process. And remember this, we are 100% referral because we treat people the way they should and want to be treated. If lenders and brokers did that then the need for stupid forms like this would not exist. Don't kid yourself into thinking this form "protects" you. Forms and rules will not protect you (trust us, we see it all the time from people who come to us from other places). All that will protect your interests is working with a company, like Premier Choice Mortgage, that will actually do what is in your best interest and not their own.

9 Questions That Wall Street Must Answer

Good article to read through. Take 5 minutes and go through it. Click on the title to link.

The Ugly Truth

This is an article about our rediculous budget deficit. Sad.
Click on the title to link.

Why A Meltdown Could Happen Again

Click on the title to link.

The Appraisal Mess

Another article in the ABQ Journal this past weekend was entitled "Unintended Consequences". It was a good article about the appraisal mess that has ensued since the government created the Home Valuation Code of Conduct (HVCC). The intended purpose of this law was to create a barrier between the lender and the appraiser. The idea was needed and worthwhile because lenders could/would sway appraisal values, thus inflating values. The big problem, however, is the governments apparent continued inability to actually think through completely the ramifications of their actions. It is always interesting to us how they never seem to consult those who are involved and directly affected by their actions. For example, they just changed the law regarding the Truth In Lending (TIL) to protect the borrower from surprise fees. That is awesome, but it is causing delays in closings because the process they created sucks (to be frank).
What they have done with the HVCC is put appraisers in who do not know the market well, are not the cream of the crop, are undervaluing appraisals because they are so freaked out they will get sued or fired, and/or have run off all the good appraisers who do not want to deal with all the garbage. The number of certified residential appraisers in NM dropped from 60 to 15 in less than a year. That is a 75% drop. As the Journal article quotes Chuck Olsen, who we have worked with before many times, "I don't disagree with the concept...But I can see absolutely no prose to this - everything's a bunch of cons." He also says the impact has been entirely negative in terms of its impact. We could not agree with him more. If the government were a coach they would have been fired for such poor execution. There are many ways to improve the system so that it actually achieves it intended purposes. But what do we know, we only deal with it each and every day.

Real Service

We talk with clients often about the inward reality vs. the outward perception. Simply put, this is the tension between what you say you are vs. who you really are. So for a business, if I say that I have the best service in town then what are the things internally that will consistantly deliver to that end. This is something sorely lacking in our industry as lenders constantly over promise and under deliver.
We received a quick thanks from a client today and were compelled to share it. We have created many internal systems that ensure we over deliver. Plus, we just have an amazing team of people whose desire is truley to serve. We are here for you and anybody you may know needing a mortgage.

My husband and I wanted to thank you for your excellence in processing all of our loan documents especially considering the time constraints. Thank you and your lovely wife for the bread. We had some this morning and it was so delicious.
Thank you and Kimberly also for all that you do and we will certainly refer you to our friends and neighbors for their home mortgage needs.
Thanks again.

US Budget Deficit

Click on the title to link. This Administration spends money like nobody's business. The long-term consequences will be far reaching and severe. You just cannot continue spending money like this without problems. Yet, here we are.
This is without a doubt the scariest statement in this entire article:

"This recession was simply worse than the information that we and other forecasters had back in last fall and early this winter," said Obama economic adviser Christina Romer.

Are you serious, Christina? Do we have stupid stamped on our foreheads? And you advise the President on the economy? Lord, help us all then. I am curious, why is it that everybody else in the country knew it was this serious then? And why did you rush through a stimulus bill of hundreds of billions of dollars? What a cop out! If you don't agree with this quote (Republican or Democrat) then you are in denial:

"The alarm bells on our nation's fiscal condition have now become a siren," Senate Minority Leader Mitch McConnell, R-Ky., said. "If anyone had any doubts that this burden on future generations is unsustainable, they're gone — spending, borrowing and debt are out of control."

Bad Credit...Get A Divorce?

We received a call today from a client who had been referred by their Realtor to a lender. The spouse had some credit issues and the other one had great credit. So what does the lender counsel them to do? GET A DIVORCE! Wow, that is really great advising on their part...NOT!! What morons.
There are two lessons here:
1. Do not just blindly go wherever a Realtor tells you because it does not mean the lender they are referring you to is actually any good.
2. Please use us as a resource to walk you through this mess. We are here to serve your needs.