About the Author
Moe Bedard is a leading expert and trusted authority in regards to loan workouts and loan modifications. Moe is the founder and President of Loan Safe Solutions, LoanSafe.org and the main contributor to LoanWorkout.org. He has blogged on this subject more than any other person on earth and has personally been involved in over 300 loan workouts and mortgage audits.
This is What You Get When You Ask For a No Closing Costs Loan From Countrywide
Unfortunately, that is far from the truth and my job is to report the truth and the truth is that Countrywide is helping VERY few borrowers that deserved to be helped and this makes me pretty damn upset. Especially with some of the crazy toxic bleeding loans they gave to good people and now their American Dream is turning into the American nightmare because of these mortgages.
The law firm I work with constantly receives calls from elderly couples on fixed incomes that were given no doc negative amortization loans and refinanced repeatedly by some of these sharks. Most all lenders are guilty of this and many brokers are also. I didn’t say all brokers and lenders participated in the fleecing of unsuspecting borrowers, but a hell of a lot of them did.
I am here to expose the truth about how these lenders and servicers are operating. It just seems that Countrywide just keeps coming across my emails and phones. So, naturally I will share these stories.
I had the privilege to have another email sent to me by a reader/loan officer that wanted to share with everyone what you get when you ask for a Good Faith Estimate from good ole Countrywide. Here is what you get when you ask for a GFE .
Copy of email:
Hi Moe: I had a client call Countrywide and ask for the no closing costs GFE this is what she got….
Thought you might enjoy this…scroll down…
I am not getting into the “violation issue” but the point is….as a seasoned LO , it took me a few minutes to understand what it meant…
——-Original Message——-
From: T%#@ #@#!
Date: 11/08/07 13:11:39
To: removed
Subject: Fw: R#@! *%$; Phone# 1-866-798-8940 ext ****…. Today’s Rates
this is what Countrywide quoted me. How competitive is this?
—– Original Message —–
From: @Countrywide.Com>
To: removed>
Sent: Thursday, November 08, 2007 1:04 PM
Subject: removed Countrywide employee; Phone# 1-866-798-8940 ext ****…. Today’s Rates
>
> (Embedded image moved to file: pic27611.jpg)
>
> (Embedded image moved to file: pic30877.gif)Countrywide
>
>removed Countrywide
> Mortgage Consultant, NCA
> 1-866-798-8940 toll free
> 1-888-492-7045 fax
> FSLD NCA Team ****
>
>
>
> 972-638-4549 Office 7105 Corporate Drive
> Plano, TX 75024
>
This is what the loan officer meant by a screen shot:
Countrywide Home Loans
What the hell is this and is this normal Countrywide protocol?
Thoughts?
Popularity: 1% [?]
Nov 9th, 2007 at 4:09 am
Atleast they gave her something. CW took an application, ran my credit and then wouldn’t tell me what or if I qualified unless I paid $400 for an appraisal to Landsafe. I was told this is CW’s policy. I just wanted to know if I qualified for a refinance based on my FICO and application before I paid Landsafe $400 (who BTW pays appraisers $175-$200 per report). CW will implode because of poor/corrupt management.
Nov 9th, 2007 at 7:33 am
In reference to the poor old folks who kept refinancing…what the hell did they do with their money? If they had not blown it, they could just pay the loan balance down and their payment would follow. When is someone going to wake up and say the borrowers were at fault? They had 3 days to think about it AFTER they signed their loan docs. No one put a gun to their head and said “sign here”.I am so sick of the “poor me” attitude of borrowers. Maybe they should have sold the home way before the refinances because they were a financial mess, but they wanted to stay in the home as long as possible and then sell…which for them didn’t work out. It was the public playing musical chairs with their homes…and some didn’t have a seat when the music stopped.
Nov 9th, 2007 at 8:36 am
As a loan officer that has been employed in the mortgage industry for 22 years I really thought I was going to use my degree in finance for the good of the industry. I didn’t realize that (and yes there are some good people working in this business) about 90% of the people, both real estate and mortgage are below the status of a used car salesperson. I came into this business with my eyes wide open and I have witnessed fraud from all directions. I have personally had real estate people (who would have thought) ask me to commit fraud regarding income information without any thought as to what they were asking me to do, (They have no brains anyway - I mean really, how difficult is it to sell a home in a good market). Regarding Countrywide (shameful/fraudulent) Mortgage Co. I recently refinanced a borrower out of the (suck me dry) option arm program. I financed this particular borrower and his wife when they purchased their first 3 homes. The fourth time was when they asked for a second mortgage to pay some debts. 14 months ago they received literature from mortgage broker stating they could reduce their payment in half. They fell hook line and sinker. They contacted me in September of this year to see if I could help. After reviewing the documentation I realized that a broker provided them with the option mortgage. The loan amount was $198,000.00. THe broker charged 1/2% origination fee, a $550.00 underwriting fee, a separate appraisal fee of $310.00 and a document prep fee of $350.00 You think this was excessive. The YSP was $6,105.00 that Countrywide paid the broker. They increased the rate to earn a larger YSP. The base rate was 3.50% and the actual rate was 9.25%. Let’s not forget that countrywide charged a prepay of $7,700.00 and because of the negative amortization the loan balance at payoff 12 months later was $209,500.00. I told the borrower to contact Shamful mortgage and ask if the prepay could be waved. Absolutely not. Why? Because they made the montly payments on time. They were never late. Let’s not forget they were making the minimum payment and not even the interest payment. Again you ask why? Because the loathsome scum mortgage broker never explained the program to them nor were they informed about the prepay. COUNTRYWIDE needs to be put out of business as do all of the irresponsible mortgage brokers who have no fiduciary responsibility towards a buyer. Let the Attorney Gereneral do her thing and I hope there is a mass exodus of mortgage/scum brokers and thieving loan officers and real estate people from this business. A cleansing needs to take place. A good number would be 150,000 more people. Add 50,000 more from countrywide/shameful mortgage company. You want stories of fraud I can tell you more and more and more.
Nov 9th, 2007 at 10:14 am
What are your criteria for deciding who does and who does not ‘deserve’ to have their loan reworked?
Nov 9th, 2007 at 11:00 am
Seriously, you need to not take any calls for a couple of days, and drink some decaf once in awhile.
Do you know what the no cost refi is??
First, asking for the gfe is a great concept. Anyone that has any industry knowledge understands that a gfe is —-not—- a legal binding document. Hell, you could have a gfe that has all zeros on it, and at the closing have it all changed.
*The information below reflects estimates of the charges which you are likely to incur at the settlement of your loan. The fees listed are estimates - actual charges may be more or less. Your transaction may not involve a fee for every item listed.*
Secondly, the no cost refi is just an increased interest rate to generate additional profit, which is then credited to the borrower to offset the closing costs. NOTHING IS FREE IN THIS WORLD…
I would chaulk it up to creative advertising.
Third, I could understand the frustrations GigEm wrote about. It pains me to see people going through that. However, you need to understand that a prequalification is exactly that. Rates fluctuate on a daily basis, sometimes multiple when dealing with a conforming loan. Hypothetically, if you are assuming that your property is worth X, and after the appraisal it is 10k less. Then the prequal isn’t worth anything, nor is the appraisal.
Lastly, I’m not too sure that these title companies have guns pointed to the customers heads at the closing. There is a recession period on a refinance, and people do see the fees at closing. I wonder why they sign for something that doesn’t make any sense. I mean does 10k in fees to consolidate 5k of debt sound like a good trade off???
Nov 9th, 2007 at 12:37 pm
In the 1980’s there were many foreclosures, maybe not as many as now, but the large GSE’s such as Fannie and Freddie had “make a deal” philosophies to help borrowers. They did not want any more REO properties. Many large lenders sold to them recently, is this philosophie reenacted?
Working in a foreclosure environment as a Loan Service Manager, I helped to save some of these borrowers. Working in underwriting the last 8 have given me a new insite to this business that I have been in for almost 40 years. It used to have dignity, now, I don’t think so.
Looking for new employment, has been tough, and with all the unemployed mortgage people, there is a double whammie on delinquencies. I am just very glad that new steps are being taken to restore the industry back to its former self. However, the damage is done, and many of us mortgage employees that performed with prudent practices are being blackballed in our search for other employment. You would think servicing companies would be very busy…. Its because they don’t want to be. AND, Servicing departments hire the less skilled mortgage employees, of which now, you need the best.. But of course, right now, it is the big wigs that need to change policy and help the borrowers. Hopefully some government individual will take up the banner and pursue this like Cuomo did with First American and Wamu.
Nov 9th, 2007 at 12:41 pm
I am tired of hearing about the poor duped people taken advantage of by the evil mean banks and loan officers. 99.999999999 percent of these people knew what they were getting, and if they didn’t they should have spent an extra ten minutes of their lives finding out before making such a huge financial decision. It is not rocket surgery or brain science.. all the info is there, just READ IT. If they didn’t speak English or couldn’t read, they should have learned how to or got a translator before signing the paperwork. Not saying there was no fraud because there was. But most knew or could find out what they were getting into and chose not to or thought it didn’t matter because the house would double in value by next year. Greed and laziness with a little fraud.
The banks were just as stupid as the people that took the loan money. Why would anyone with at least two brain cells make a loan to someone without knowing how much money they made. Why would they make a loan to someone that can afford it today, but not in two years. Morons. Greed and laziness and a quick buck NOW and F the future. They deserve to go bankrupt.
The banks were not looking out for themselves and the people getting the loans were not looking out for themselves. I have NO sympathy.
Nov 9th, 2007 at 1:14 pm
Every circumstance is different. There are some cases that the neg am loan make sense. There are some cases a reverse mortgage makes sense. So on and so on. A solid originator will be able to carefully make those decisions. I have heard all of the bad things about one peticular loan. Not always true. When the wrong tool is used yes it is a problem. This is where most borrowers feel duped by their lender. When the right tool is used then another salesman says how they have the worst loan in an attempt to gain their trust.
Nov 9th, 2007 at 2:30 pm
BooHoo, I understand what a GFE is, rates change, appraised value may be short, etc. But if it’s CW’s policy to not let an existing borrower know if they qualify to get out of a loan that even they have admited is toxic, then why not just say it upfront. No need to run credit, take an app and then say we need $400 before we’ll tell you if you qualify or not. They don’t need an appraisal fee (which again they make money on) if my FICO is 300 and I’m unemployed to tell me I can’t buy a pack of bubble gum. Hell all they do is beat consumers over the head with “It’s only an estimate” when a borrower complains that the final docs in no way resemble the GFE. But now they want you to pay for an appraisal before they give you something that they claim isn’t worth the paper it’s written on?
The way it should work is if I don’t qualify then an appraisal isn’t needed. If I do qualify based on the initial credit run and application, tell me what I may qualify for provided my estimated home value matches an appraisal then I can decide if I want to spend $400. But it’s not that way because CW owns the appraisal company and wants the revenue. It’s bull collecting appraisal fee’s from borrowers they know they can’t help as soon as the credit’s pulled.
Nov 9th, 2007 at 2:30 pm
You know, the ones that wanted the starring role on flip this house. Mostly investors that bought many, many properties. But even then, here are some good people who were not greedy that should be helped. Even though they are investment properties.
It needs to be done on a case by case basis. Just like when they gave them these damn loans.
Nov 9th, 2007 at 2:36 pm
Based on your comment above, I know plenty more than you think I know and obviously know the LAW better than you.
A GFE is not a concept but part of disclosure law per RESPA. Yes, it is an estimate, yes it can be off, but it’s law.
I know no cost refis cost. DUH!
I’ll keep drinking my caffienated coffee thank you.
Nov 9th, 2007 at 2:40 pm
99.999999999% knew what they were getting?????? You have to be f#&*ing kidding me????????????
The banks were the smart ones.
This is a financial scam.
You should have been looking after them since that is your fiduciary duty and what you get paid for and it’s your above attitude that gives broker a bad name.
nuff said.
Nov 9th, 2007 at 3:08 pm
stop the bull-shit of putting the blame
on the brokers,all they did is gave the borrower what they wanted,and that was a mortgage.if the borrower didnot have the income they gave a no -doc loan.
we the brokers did not make this programs
the banks did,we just offerd the programs to people that needed them and wanted them
Nov 9th, 2007 at 3:09 pm
I currently work for a small community bank with several branches. For the last seven years I worked for several lenders as both an AE and Manager. I know from personal experience that each and everyone of these large national mortgage lenders knew exactly what was going on with the loans they were approving. They, like the brokers and loan officers who were sending them the loans were out for the almighty dollar. Two years ago, every major lender and every publication was talking about this crash that we were going to see, but they did not want to change products, policies or anything until someone else did because they did not want to lose market share. The exotic products that were a result of the sub-prime refi boom were great products for the niche customers they were designed to serve. However, man will find a way to distorte anything and make it work for himself so that he can “Be Successful”. Our industry is F*#@ed and it will be 10+ yrs before it gets worked out. We did it to ourselves and we are veiwed as lower than used car salesmen. You can bitch about it all day or make a stand and be on the forefront of recovery by educating yourself and working for the borrower you represent. It is ok to make a profit, that is why we do what we do, but do it by helping others, not yourself.
I shall step off my soapbox now.
Nov 9th, 2007 at 3:21 pm
Screw you KL!!! There are more homeowners out here not “crying” about being duped, but simply had a string of misfortune and an unforgiving,uncompassionate lender!! Some of us have TRIED to pay them, hell, even hand them an approved short sale, but alas, they either put the screws to you on a repay program that gets you even more behind or just ignore you!! Maybe YOU need to not profile every homeowner as needing a “translator” or knowing what they got themselves into. People are going homeless for lots of reasons besides your worthless babble!
Nov 9th, 2007 at 3:22 pm
PS KL: If you have NO COMPASSION, stay THE HELL OFF THIS SITE!!
Nov 9th, 2007 at 3:27 pm
LMAO. Moe, tell it like it is.
And as far as Countrywide is concerned, our dealings with them in loss mit have been the same, over and over. No investment properties, must have made the past 24 - yes 24 payments on time and then they want to do a repayment plan and extricate a few grand from the borrower. If the HAD the money would they need help?
Nov 9th, 2007 at 3:28 pm
what if the homes in their market were not moving, what if they had a huge pre-pay penalty what if they had a 100% loan and the values went up JUST enough for a no cost refi, what if some greedy company screwed them in the first place. Most of these people are uneducated in mortgages and it is up to us the LO’s to properly educate and not take advantage of their limited knowledge in our field. Admit it if an electrician were to tell you you could rewire your house just by listening to him talk for 15 mins. and you trusted him because he was a professional in his field wouldn’t you do as he says and assume you would not get shocked. These guys put their trust in that electrician and are now much more than shocked.
Nov 9th, 2007 at 3:28 pm
what if the homes in their market were not moving, what if they had a huge pre-pay penalty what if they had a 100% loan and the values went up JUST enough for a no cost refi, what if some greedy company screwed them in the first place. Most of these people are uneducated in mortgages and it is up to us the LO’s to properly educate and not take advantage of their limited knowledge in our field. Admit it if an electrician were to tell you you could rewire your house just by listening to him talk for 15 mins. and you trusted him because he was a professional in his field wouldn’t you do as he says and assume you would not get shocked. These guys put their trust in that electrician and are now much more than shocked.
Nov 9th, 2007 at 3:43 pm
NB:
Sorry, I just dont buy it “poor people”…IF, as you say, “most of these people are uneducated in loans”…WELL THEN THEY ARE NOT SMART ENOUGH TO OWN A HOUSE!
Home ownership is BIG responsibility and R-I-S-K-Y…and SMART people know this, and make SMART decisions…
since when did it become the LO’s responsibility to educate people?
Goodness!
Nov 9th, 2007 at 3:47 pm
mom: compassion has no place in the business world…..sorry to make you hear this, but its very sadly true.
Your country…this US…was not built by compassion, it was however built on about 1 million dead soldiers who decided to fight England back in the day, and the civil war, and WWII…yeah..
Id like to see this country today had they had “compassion” back then.
People who took money out to buy trucks and TV’s, and BOOB-JOBS just simply DONT deserve compassion.
Exceptions for those who can dicument a loss of job deserve a break…but NOBODY esle.
No loan company forced anyone to take out a loan.
Open your eyes, and move on with making good decisions, and stop blaming business (who by the way pay salaries if im not imstaken) for the worlds problems.
welcome to the New America people.
Nov 9th, 2007 at 3:49 pm
Finally, someone stepped up and said the real truth! Nice going. Do the borrowers have no fault here. Whats happened to America is all the media and advertising pushing more credit and products. I would imagine that most of these people maxed out there credit cards and had to refinance because they were leveraged over 100% of their income. The borrowers should be at fault here. Our America is turning into blame everyone else attitude. If the attorneys want to get to the problem, why dont they just sue every homeowner in America, their at fault for our crisis, aren’t they?
Nov 9th, 2007 at 3:51 pm
It became the LO’s responsibility to educate people when you took the job! So are you saying that if you need legal council, your attorney should expect that you already know everything? You are a freaking idiot. You are paid to educate borrowers, that is your job. If you do it better than the guy down the street and earn the borrowers trust, then you get the loan. Instead of talking about people not being SMART ENOUGH TO OWN A HOME!, you should ask yourself if YOU ARE SMART ENOUGH TO ORIGINATE LOANS!!!!!
Nov 9th, 2007 at 3:52 pm
Oh yeah…. mom…
Nobody is going HOMELESS….people who simply NEVER should have had a house can move into an appartment.
For those of you who have had strings of misfortune, my heart goes out to you….I myself had a BIG string of misfortunes in 2002-2004…I Kept my House, by the skin of my teeth….but I PLANNED for such misfortune for years before.
If you dont plan for misfortune, and misfortune hits you, and you loose a house, then you fall into that category of people that are very risky, harsh but true.
Would you “mom” like to loan someone $100K from your HELOC, and the would you have compassion on that person if they spent their money then lost their job and told you they could not pay you back? I bet youd want your money back…
But for some reason Banks dont need the money back…
Geesh!
Nov 9th, 2007 at 3:56 pm
just offered the programs to people that needed them and wanted them?? I want a million dollar house in the mountains and can convinve you that I need it- it doesnt mean I can afford it. It is you the brokers responsibility as the first point of contact for the borrowers to explain to them IN DETAIL, the repercussions of the loan program they desire. And this is where YOU, THE BROKER, have failed miserably. Brokers convinve lenders that the borrowers can afford the loan, and then turn around a convince the borrowers the same thing, and then take your money, wash you hands, and assume no responsiblility whatsoever of the consequences. This is why our industry is in the chaotic mess we are in right now. Hopefully when its all said and done, there will be no more wholesale brokers to rip off un assuming borrowers.
Nov 9th, 2007 at 3:59 pm
I have been in the RE industry for about 10 years. First as a RE investor and for the past 8 years as a licensed lender in Florida. I refuse to use Countrywide. I do not need them. The only reason that brokers use Countrywide is because they can not be approved at other lenders. Countrywide’s wholesale rates are higher than most in the industry. Fraud, I have seen it. Uneducated borrowers, I have seen it.
Crooked banks, lenders, brokers and Lo’s, I have seen it. Crooked title companies talking people into closing loans, I have seen it. I have fired several brokers over the years for attempting to commit fraud. Some of these brokers have been lawyers and CPA’s. In 8 years of providing loans I have never done a loan that keeps me awake at night. I talk to the AE’s who have now gone to the A paper side. They tell me about the mortgage shops who are now trying to use FNMA and FHMC. How are you a mortgage business and never used DU or DO. I get my business from the same people as every other company in Florida. Why is my production 90%+ put through FNMA/FHMC. This is very simple, subprime pays well and you can put anybody into it.(GREED) I have done 3 option Arm’s in 8 years. All of these loans were for exceptional circumstances, and were paid off within 1 year.(wealthy clients) Less than 10% of my production is/was subprime. I don’t do crappy stated loans for salary borrowers. I have done many No Doc loans in 8 years. No Doc means No Doc, there is no way to commit fraud here. I have used the same appraiser and title companies for 8 years. We are all hurting now. Who is to blame? How many times have I offered people a choice between adjustable loans and fixed rate loans, and they take the adjustable loan because of their greed. How many times have title companies talked somebody into a loan because of their greed. How many times has a broker made a fraudulent loan because of greed. How many times have banks made loans because of their greed. I have no guilt. I sleep at night. My clients always come back to me,and they sleep at night in there warm stable mortgages. I am glad the companies around me are going out of business. I know of no good brokers who are closing shop in my area. They are honest and ethical like me. All the scum is getting out and we will be left to pick up the pieces. I wish I would have made more money during the boom, but not at the expense of my clients and selling my soul to banks like countrywide. I sleep at night.
Nov 9th, 2007 at 4:03 pm
Do any of you even know what your talking about? First off countrywide DOES NOT offer option arms with NO DOC. No doc means no income verification or asset verification and to simplify more, you don’t even need a job. What most of you don’t understand is that CW got big buy purchasing servicing rights from other banks. As for CW lo’s, well most of them don’t know much other than a stupid script they make you learn…not to mention, the CW lo’s the ones you ppl bitch about not being able to help or are trying to get over don’t really make any money. I worked for cw for 3 years and have been on broker side even longer. like most of you will attest, yes there are ppl out there who will try to do bad things for ppl.. Overstating income is the biggest. That being said, i personally have never tried to put ppl in bad loans, you explain whats going on to them and if they like they buy it. Simple, but in that same respect I much like most of you all here HATE ppl who take advantage of elderly ppl or ignorant ppl to make money. I always try to educate ppl as best as i can, but ppl need to understand that when you take 100K out and get a arm mortgage that you know is going to reset and then complain that you cant make your payment.. well.. thats your own fault. I think some ownership is required for certain ppl that complain and try to screw honest ppl who got in this biz to help ppl nto screw them. As far as option arms go, sometimes ppl want them and need them… i had a brw once who was on fixed income, his wife has a part time job and they had some money in the bank. He currently had a 5.375 I/O arm that was going to reset. He had credit issues in the past and he wasn’t really qualifying for much.. so i explained the situation and offered him a 30 yr Fixed option arm… after going over the details it was the best choice since he could not afford to pay more, now i did advise to continue to at least pay what he pays now and make the super duper low Min payment, i think he payed like 1200 and min payment was like 700.. so he would not Neg am as much. I’m not siding with anyone, but ppl have to understand, you sign the loan documents, no one made you. We didn’t know that this market was going to crash like it has been, yes we saw declines, but we didn’t know it would be this bad… i have tons of previous and it is the worst feeling when you have to tell them that the market dropped and the arm that they have is changing, but at the time it was the best option they had. but please stop taking pot shots are poor lo’s at countrywide who are just trying to pay there bills too…
Nov 9th, 2007 at 4:04 pm
I completely agree. I dont see one name on the imploded list that I actually feel sorry for. The more of these people that go away the better.
Nov 9th, 2007 at 4:06 pm
You act like the borrowers have no need to make responsible choices about their own finances. Maybe they did take a stupid loan, but isn’t that their fault for not asking questions about how their loan works, and maybe exercising some restraint? I guess it’s the American way to take any credit dangled in one’s face and if you can’t afford it and got in over your head… it’s the bank’s fault! How ridiculous is that. Just like the dumb kid who blows off his finger with a firecracker, now suddenly nobody can have them. Why can’t anyone take responsibility for themselves anymore? Everyone has a “I want it now” mentality in this country, and that’s the problem. Why is our economy heading towards an inevitable market correction? Because every time the market tries to correct itself, we get government market manipulation which just pushes the problem under the rug for the next administration to deal with in a few years. The public keeps voting for these people, because they don’t want to suck it up and go through the market correction either. “I want it now, can’t I just finance it?.” Ask the people who refi’d 3 times with Option Arms where all the cash-out went? I’d bet most of it went into 24 inch tiles, granite countertops and putting something extravagent in the driveway. Why? Because their neighbor did, so they have to keep up. Nevermind that the car has a 6 year loan and their house payment doesn’t even cover the interest.
Now you want to bail all of these people out. When does the market get to fix the problems that society and government are creating?
I bet you have a good solution to fix this problem, something like- the banks should just waive hundreds of thousands of dollars of loan balances and reduce interest rates to prices the borrowers never qualified for and the market will not bear, and let’s throw billions of our tax dollars at it to bail these people out, too. Or better yet, just print more money to bail them out and increase inflation and continue the plummet of the dollar.
If you aren’t sophisticated enough to get a loan to buy a home you can afford, then maybe you aren’t sophisticated enough to own a home! Home ownership is NOT AN ENTITLEMENT!
Can’t handle getting a mortgage? Then maybe you should just try writing a rent check once a month, you can handle THAT at least right?
Where’s the responsibility?
Nov 9th, 2007 at 4:13 pm
Know what you are talking about before printing it. I work for CW and what you descibe is NOT CW policy it would be the individual LO or Broker requireing the Credit and appraisal fee. CW opperates as most Mortgage companies do. You try to hire the best people you can, train them, and monitor behavior. We the the biggest so we are an easy target. I have done only 1 pay option over the years because the customere begged for it. He needed the lowest payment possible COMPLETELY understanding the entire loan. I have since refied him out of it. A GFE is concidered a compilence document and not allowed to be sent by the LO. It must be sent by the underwiter. An estimate can and is ALWAYS sent to the client with ACCURATE details of the loan fees. It is ONLY a bad LO that would not provide this. Do you people think that the majority of loan originated by CW are bad? that the company has dupped Everyone? Over the years CW reputation has beed stellar, with JD Powers consistantly ranking us high. You don’t get to be NUMBER 1 by cheating everyone. GROW UP. Yes there are bad loan officers employed by CW but not the majority. There are a lot of bad Brokers that is why you are seeing and will be seeing whole sale lending going away, good is all I can say.
Nov 9th, 2007 at 4:16 pm
Hey uh David K, I did not have a boob-job. My 18month old baby has leukemia. I am not talking about those who took out a loan and blew their money, I am speaking to and for those who had a situation like myself, and did not have the funds to plan for cancer. How do you plan for that? Thanks for your great advice.
Nov 9th, 2007 at 4:32 pm
Correction, extort a few grand. This is all part of the scam. The bigger the loan, the more delinquent fees, the more they feed the cash machine and the more they do not have to report on their books, the longer Mr. Mozilo and the Countyfried ship can stay a float. But they are a sinking with those Option ARM’s. Those loans will sink them eventually.
Nov 9th, 2007 at 4:39 pm
You say, “You don’t get to be NUMBER 1 by cheating everyone.”
Your joking right. I guarantee that soon Mr. Mozilo and his cronies, besides the SEC investigations going on right now, will be under indictment by the AG very soon.
I agree that yes, there are good and bad loan officers at all companies. It seems like the bad ones made the most amount of money and they were rewarded for bringing in that money and the good ones who did what was ethically right, perish, eventually.
But I believe the good ones will rise from the ashes and make a killing doing the right thing as all the others go work at In and Out. Where they were before they got in the business.
But even if your a good guy and ethical and you work for the mob, well, you will go down with the mob because now your hands have blood on them.
A LO should not quote fees if they are not allowed to issue GFE’s.
Nov 9th, 2007 at 4:45 pm
Whether one agrees with it or not, the law is that a broker owes a FIDUCIARY DUTY to the borrower, and that means putting the best interests of the borrower ahead of the broker’s own interest. Loan officers (because they are AGENTS of the broker owe the same duty to the borrower.
Uneducated borrowers who went to brokers did the right thing. They realized they needed help, education, guidance, advice, etc. to get a mortgage they could afford. They hired a professional… that’s is why the broker got paid… to help the borrower understand the loan, get the best loan for the borrower, and do the broker’s best to put the borrower into a loan that met the borrower’s goals. Yes, the flip side is that if a borrower wants a toxic loan and the broker explained all the pitfalls and even recommends against it, but borrower still wants it, then borrower gets what he/she deserves. But, that is not how things happened in the majority of the cases.
Think about applying this to other fields… does a patient have to study up on medicine to double check his/her physician’s diagnosis, check dosages of medicine, make sure the pharmacist put the right pills in the bottle, etc? NO. The patient pays the doctor (the professional) to look out for the patient. Does a client have to study law, double check the motions, complaints, court filings, etc. when he/she hires a lawyer? NO. That is why a client hires a lawyer. For those that say the comparison of loan brokers to lawyers and doctors is way out of line, the same applies to accountants and financial advisors… all are paid to help a borrower make decisions that the borrower isn’t able to make on his or her own.
Yes, there are patients who Super Size it against doctor’s advice. There are clients who won’t accept a great settlement even when their lawyer tells them it’s the best that will be offered. There are people who will buy certain stock even though their broker recommended against it. But none-the-less the professionals are hired to provide competent and diligent services under a fiduciary duty (a doctor’s duty might not be called “fiduciary,” but it’s similar).
- Paul J. Molinaro
Nov 9th, 2007 at 4:57 pm
Yes, a GFE is required per RESPA. However, him sending one to the borrower when requested is NOT law. They are sent in a standardized pack, that most mortgage companies have setup to auto kickout after 72 hours. The GFE is not always indicative of the offer, especially if the borrower decided to shorten term or make any changes that affect loan amount.
My opinion is that a majority of borrowers ended up in the mess they were in due to greed. When offered “cashout” on a loan, the sheer nature of the human on a budget is to horde cash. They inturn take out money that increases loan size ON TOP of the closing cost of the loan. Or better yet, they have to payoff 40k in credit cards in order to show a below 50% Debt To Income ratio. Most of the people knew exactly what they were doing, or worse didn’t even care to give the long term ramifications a 2nd thought.
Now it would seem, they are all holding out there hands and putting on the “I got screwed” signs, looking for pity from their peers.
If most people are not aware, the borrowers we are speaking of are subprime for a reason. They usually do not qualify for a home, but were ALLOWED to take a loan that would put them there. Otherwise they would still be renting, which in hindsight… they never should have been given the chance in the first place.
Nov 9th, 2007 at 5:17 pm
Moe you are right about Countrywide. They have always been one of the biggest players in the mortgage industry the most predatory! As a loan officer my joke was that - I should just set up a table outside of a Countrywide retail shop…I could have made millions!!! I was lucky enough to intercept several of Countrywide deals…Countrywide was offering the customer 2/28, 3/27 30yr with a 3 or 5 year prepay costing 4 discount points. At 8.5% interest rate…I run the loan through DU or FHA, charge 1 point up front, one point YSP, 6.375%.
How is it that on of the biggest Lenders in the United States, can’t have some type of procedure in place to be sure they are offering the client the best loan availabe? These were retail/inside guys! Not brokers. Consumers are sucked in by the biggest, most recognized name in the US. Why would joe blow consumer question Countrywide? That’s like questioning the quality of a Benz over a Kia (to the consumer) Consumers are not savvy enough to know any better when it comes to mortgages and mortgage brokers have always been portrayed to the public as being crooks (and some of them are.) Consumer’s were set up to fail. So yes, Countrywide is responsible and accountbable for a huge portion of the problems in the industry.
Finally, in the end, most brokers only care about the money. The only reason most broker’s sold option arms is because the potential YSP was 3% or whatever. Yes, the option arm is good for SOME consumers but as an average broker that should have only been a very, very small percentage of their business. That was not the case. Some broker shops specialized in option arms.
Bottom line is moderation. The no doc, NINA, SISA,100% etc products were created to fill a very small niche in the market…not be the main product offering of brokers AND lenders. But as Americans we don’t know about moderation..and thus we have a mess.
It’s really sad because a lot of really good, honest, hard working people with integrity (brokers, consumers, lender employees etc.) are the victims.
Ps..it’s not fair to say the consumers should have known better, There are a lot of aspects of life where we are all consumers and don’t have a clue. There are times when we have to trust an “expert” for advice and guideance. Too bad when it came to mortgages, the majority of the “experts” were really crooks!
Nov 9th, 2007 at 5:17 pm
I bet you work for countrywide, dont you?
Nov 9th, 2007 at 5:23 pm
dont worry, theres no way Countrywide will survive this. Out of all the option arms that were sold over the last 3 years CW owns more than 36% of them. Out of that 36%, more than half are delinquent right now. Sooner or later, hopefullly sooner, CW is going Bye Bye. Keep selling those shares Mr. Mozilo- your going to need the money for all the law suits…
Nov 9th, 2007 at 5:24 pm
I agree totally! If Countrywide was the last wholesale left on earth - I would NEVER send a deal to them. I was never a rich Loan Officer - I lost a lot of clients (who I was offer a FNMA or FHA loan) to other broker’s who SOLD them on an option arm….Same Appraiser and same title company for years…and now the mess- victms of all of the scum in the business!
Nov 9th, 2007 at 5:36 pm
CW should be ashamed for allowing loan officers to practice in such a manner. It’s ethics as such that gives GOOD loan officers a BAD name.
Nov 9th, 2007 at 5:38 pm
After 30 years in lending YOU may be the one who finally causes me to throw in the towel. When you ask when it became the LO’s responsibility to educate his clients you reveal EVERYTHING bad about so many who joined the ranks. If you do not feel that educating your clients is your FIRST responsibility, get the hell out of the business. You are an absolute disgrace.
Nov 9th, 2007 at 5:42 pm
I totally agree!!!! This thread is proof why the market is in the current condition..
Nov 9th, 2007 at 5:47 pm
I will drink to that!!! Cheers!
Nov 9th, 2007 at 5:50 pm
Caveat Emptor
Nov 9th, 2007 at 6:02 pm
Ok People. If you have a bunch of rotten fruit there is a rotten root. I have been in the mtg industry for fifteen years and can see all points. But see this point. Over the last 100 years we have gone from being Americans with freedom, which comes with responsiblity to US Corp as us citizens with civil liberties (entitlements). The situation we find ourselves in with regards to this mortgage mess is just on of the many rotten fruits produced by the rotten root. Until we deal with the root we are not going to have any luck dealing with the fruit. The sense that we are “entitled” to something without responsibility leads us to this futile blame game at all levels. This nation is on the threshold of a period of serious reckoning at ALL levels. We can only hope that it leads to the redemption of this once great nation. We are fundamentally and morally bankrupt. The obiturary for common sense, personal responsiblity/accountability, healthy humility, etc etc have long since been published. I believe that our founders believed that one could wipe ones own ass. We are a gigantic complacent, apathetic herd being led to the slaughter in a porsche on a highway to hell and all we are doing is arguing in the car.
Nov 9th, 2007 at 6:08 pm
What a piece of trash! You are the reason these people keep getting taken. You justify stealing by saying, “if they would have just locked their doors we wouldn’t have come in a stolen their belongings. You make me want to puke. Go back to selling used cars!!!!
Nov 9th, 2007 at 6:08 pm
I think everyone needs to look in the mirror. I can honestly hold my head up and say I have NEVER originated an option arm with neg am. We have had the programs available but refused to do them do to the fine print which is the neg am. We have had more people calling freaking out because they did not understand what was originated.
Loan officers threw uneducated people into stated income loans to get them approved for more money so they could make more money. They did not think about the consequences and now they think they are being picked on.
Nov 9th, 2007 at 6:35 pm
Ray, you couldn’t be more spot on. I too have been in this business over 20 years and I have witnessed more blatant fraud than I could have ever imagined. I never knew there were that many used car salesmen in this business! It makes me want to leave this sorry business and go work for the FBI so I can personally put away some of these scumbags. As for Tangelo Mozillo, no doubt he will get his just rewards.
Nov 9th, 2007 at 6:36 pm
Any one who can’t see past their wallet or pocketbook has no business in the mortgage business. We are a “Service” industry. We have a moral obligation, not to mention a ‘legal’ obligation to act in the best interests of our clients/customers. It’s guys like KL that have pushed this industry to the brink of collapse. He is the one who is all about his Lexus and condo on Maui. Do whatever it takes to maintain the lifestyle. KL, all is can say is ‘Thanks’. Given your attitude and the very real probability that you haven’t originated a single loan without some form of fraud or gouging, this industry is likely going to be regulated beyond comprehension. I hope you don’t put much stock in Karma, cause when it comes back around to bite you, it’s gonna look like a 20 foot Great White Shark and you won’t have a prayer of rescue!
Nov 9th, 2007 at 6:56 pm
If they are uneducated in mortgages why do they have one? Stupidity isn’t an excuse. It will get you government money. But it doesn’t excuse you from responsiblity that you signed for
Nov 9th, 2007 at 7:01 pm
They are uneducated because they do NOT do this everyday like we do! If we go in to have surgery do we not expect the procedure to be fully explained and any risks fully disclosed?
I am a professional in this industry and I make it my responsibility to educate my customers to the fullest of any risks that may be involved. They are entrusting their financial well being to me. They are depending on me to give them the full information, in english, so they may make a decision. Again, are you going to decide to go through with a major medical procedure without being fully informed? Come on accept your responsibility here!
Nov 9th, 2007 at 7:02 pm
I put blame on a lot of brokers, but not all brokers.
It’s now to the point (due to the fact that there were some many punk kid just out of high school chumps that came into the business and had no true idea about the financial business) that have screwed it up for the seasoned vets and good LO’s that had integrity and placed people in loans that they should have been placed in on their clients need and not the LO’s greed.
Unfortunately, the idiot LO’s (thanks to companies like Ameriquest and the lot) out numbered the good, by a million.
Yes, a lot of homeowners did know what they were getting into. I know this. I am a realist not a bubblist.
But your mentality is like.
They made the crack, they cooked it up in their labs, and I just sold it. Why should I be blamed for people dying from the crack when those guys made it. Thats not fair, boo hoo.
http://whitenoiseinsanity.files.wordpress.com/2007/06/loserman.jpg
Well duh!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Nov 9th, 2007 at 7:05 pm
I work for a top tier financial institution that happens to be out of the news. I find it extremely unfortunate that so many lenders practiced with such a lack of ethics. Luckily, there are companies like the one I work for who have been doing loans correctly forever and our customers appreciate that. I do believe that we are seeing the very beginning of this housing mess. The sad thing is that these lenders manipulated the system so bad that its really hard to remedy the problem. For example, I am working on a deal where we are doing a straight refinance for 100% the value of the home. The customer has a two year arm adjusting in a few months and this freaking company not only put them on a horrible arm deal but also imposed a peanlty for pre-payment. I cant believe these guys. The government needs to step in and penalize these companies that caused this problem. In addition to that its amazing how these companies are having all these write offs but are paying their CEO’s an astromnomical amount of money. Greed is what caused all this.
Nov 9th, 2007 at 7:09 pm
You tell em Mom!
Man, you don’t know who your messing with. A real homeowner that deserves to save her home and will fight till the end. She’ll tear ya a new one, bud.
Nov 9th, 2007 at 7:10 pm
It is not just brokers to blame here! It is everyone in the industry that originated these loans! It is the lenders that pushed their “Sales People” to sell, sell, sell!!! It was about volume not customer service, not educating the consumer, not looking at the consequences down the road. Volume, volume, volume!!!! Every Big name out there wanted their name on the top of the list at any cost to the consumer. Everyone needs to understand that with every action we make there is a consequence. If we do good things, good things will happen, if we get greedy and not care about what will happen to these people who have trusted us then so live with the consequence!
Nov 9th, 2007 at 7:14 pm
#1 - I agree that the borrower’s of america need to become more responsible for the documents they sign to repay a loan.
#2 - unfortunately, there are always going to be dishonest people out there trying to sell you something. A mortgage, car, lottery ticket, etc…. the american consumer needs to better educate themselves and take responsibility.
#3 - everyone has to compete with their neighbors and get something bigger and better. Welcome the Int Only loan. The consumer asked for it…
#4 - Lets not forget the introduction of Automated UW processes called DU/DO and LP. As of today I can still get a loan approved on a fixed income person with a 75% Debt to Income Ratio. Gee…I didn’t even take into consideration the electric bill, car insurance, gas for the car, presciptions and oh yeah groceries??? What the heck ever happened to the UW ability to make a sensible decision. I know…the Loan Offier who wants to get the commission, the Acct Exec wants there share too. Why not approve it….as long as you get a Approved Eligible or Accept that is a SOLD loan and guaranteed to be bought! I forgot to mention….its a Low LTV so we don’t need an appraisal either….Proprty Inspection Waiver!!
I say anyone that is going to sit down and educate a borrower on a loan needs to be educated to do so….CERTIFIED!!
Automated UW needs to go BYE BYE!!
All you Loan Officers out there….next time someone comes in and wants a loan and you don’t think they can make the payment. Tell them to either buy half to house the came in to buy or wait til they are ready!
NO ONE DOES THAT ANYMORE!!!!!
Nov 9th, 2007 at 7:17 pm
When I am prequalifying a borrower this is what I say, “Rather than me telling you the maximum I can get you approved for, have you all discussed your what your budget can afford each month? Why don’t you both talk about it and let me know so I can tell you what price range that will put you in. This way you are not living for a house payment but are actually able to live outside of the housepayment.”
What is so hard about that question?????
Nov 9th, 2007 at 7:19 pm
You a rare!
Nov 9th, 2007 at 7:20 pm
Amen JC.
Let me guess? Citi or Wells?
Nov 9th, 2007 at 7:20 pm
I am in this industry for the long haul.
Nov 9th, 2007 at 7:22 pm
If you are talking to me, proudly neither!
Nov 9th, 2007 at 7:23 pm
certainly not CW
Nov 9th, 2007 at 7:24 pm
Where has the integrity gone?
First: To address Good Faith Estimates.
The law states they must be given to an applicant with 3 days (72 hours) of application. There are limits to how much the estimate can be off. Also, the loan must be re disclosed if significant changes occur during application. But more importantly, this disclosure should be used to educate the potential borrower and the borrower should never be allowed to leave the application without fully understanding the loan.
Second: To address Greedy, all knowing borrowers.
Don’t be ridiculous. I have been in the business for over 25 years. As a broker that did not offer neg am products, I have been privy to the sales pitch from lenders like World Savings, WA MU and all others offering the Pay Option. When I pointed out that the loans will go negative, the responses were “it hasn’t posed any problem’s in the last 5 years. Here look at this chart and it explains all the benefits and savings this program offers.” “Look at these ads in XYZ Financial and see the success stories” “See all these people making millions flipping houses”. Etc etc. Only my years in the industry were enough to enable me to see thru the scam and not offer the product.
Third: Where is the money?
There has been lots of money made in this industry over the last 10 years. Where is it? The honest brokers, and LOs don’t have it. We were run out of business when we decided not to offer those products or at least explain them honestly. Example: a potential borrower called me and asked for a no cost refi. I explained that there was no such thing. That the lender simply raised the rate and netted enough on the back end to cover the closing cost. I told him I could, of course, give him that type loan, but I wanted him to understand how these loans worked. He became angry and told me I was full of sh-t and just covering the fact that as a broker I didn’t have the product. He went to the bank for the loan.
I have explained to borrowers the reason I did not offer certain products, such as Pay Option Negative Am, only to have them “sold” by my competition with the borrower calling me to tell me the product doesn’t work the way I explained it.
It’s true the borrowers did “want to get a good deal” but this is the normal human condition. What is sad is the con artist that take advantage of this.
You want to know where the money is? They have it….while the rest of us just “eat it” to enrich them. Corporate America studies human weakness and capitalizes on it. That’s how people end up buying things they don’t need. It’s wrong. They know it’s wrong but they salve their guilt with the money they make.
Fourth:
Role of the investor: No one studies companies anymore. In the past decade money has flowed freely and safeguards that were once in place to maintain integrity no longer exist. Honest people have been taken….Dishonest people have made fortunes. Bring back integrity.
Nov 9th, 2007 at 7:35 pm
People, beleive it or not but we are in fact in the information age. Are you kidding me? I dont feel sorry for anyone that takes on an adjustable; period. Blaming Countrywide is not going to solve the problem and blaming a 19 year old at Countrywide is like blaming Ronald McDonald for a bad cheesburger. If you dont like the service, try your credit union or your local bank. O-yeah, maybe you did and you have to settle for a high risk adjustable interest only because your credit is shot. Take accountability by blaming yourslf; not the system. Yes, the system made a lot of money but isn’t this the point for any company large or small. The system took a chance on a lot of dead beat Americans that loved blaming the system for all their troubles. Again, we are in the information age which means any information can be obtained through the internet, non profit organizations and libraries. Dont play the victim card, take accountability. My advice is this. Live within your means and take accountability when you borrow money. Hence, borrow money. No you dont get to call the shots when you borrow money. If you dont like the terms of the loan, DONT TAKE THE LOAN.
Nov 9th, 2007 at 7:45 pm
I actually worked for them for 2 yrs as a Manager and we did not agree. I was about quality, customer service and treating your employees extremely well and they were the opposite. They only wanted numbers. As Brian Hale once said, “Do whatever It Takes to get the Deal.” President of Consumer Markets in a Regional Rally
Nov 9th, 2007 at 7:48 pm
The house across from me went into foreclosure over the summer, and is now empty. The people deserved it. The owners were wanted on armed robbery charges, drug charges, etc. The were selling stolen goods and drugs out of the house just to pay the mortgage. In fact they didnt even have a job when they bought the house. Ya know one of those lovely stated income/stated asset loans. (My hubby is a police officer so that is how I get my info). WELL….Here is the funny part. Low and behold, the mortgage company is COUNTRY WIDE!!!!! This house is costing them a TON, and I LOVE IT!!!! So far they had to have a professional pool company come out and close the pool (I was concerned because of mosquitos so I called the township), so the township made them do it. They had to have a landscaping company come out and clean the front and back yards (You could barely get into the house because it was so overgrown). They had to have a “clean out” type company and empty the house (mind you 3, tractor trailer size dumpsters later), it was clean. The roof is collapsing, and the floors are buckling (MAJOR structural damage). They just had all the utilities turned BACK ON!!! (why???) It is listed for 135K (that is what they bought it for, with the lovely no money down, etc) I am sure they are loosing a TON and these bastards deserve it!!! This is for all the WRONG that this company does to GOOD PEOPLE!!!! May Country Wide SUFFER losses like this one with EVERY house they take away!!!
Oh, and a little sidebar, “In the listing, Country Wide is offering prospective buys no application fee or appraisal fee for the property if they finance thru them”…
Hmmmm…..Wonder if they are doing that because the house is NOT WORTH what they are selling it for and they plan to “inflate” the appriasal…
Nov 9th, 2007 at 7:48 pm
People with that type of attitude are the ones consumers need to look out for.
Nov 9th, 2007 at 7:51 pm
CW equivalent form to a Good Faith Estimate comes out on a document called “Closing Cost Estimate.” I use to work at CW retail division and it was standard practice to email this to any client requesting a loan before the lock was committed and all disclosures were mailed out.
Any loan officer at CW should be able to email you the “Closing Cost Estimate” and if they say otherwise you should speak to the branch manager or shop your loan with someone who can provide you with the Good Faith Estimate.
Nov 9th, 2007 at 7:57 pm
Been in the business for 3 yr and have a wonderful home and nice car ah love this business.. Any one needs a loan? No need to read just able to sign and receive check in the mail.. LAVE Personal Responsibility AT HOME..
Nov 9th, 2007 at 7:58 pm
I love this! I am glad I came to visit your website.
Oh the stories I could tell you! Truly unbelievable… Not at all surprised. Please keep posting info!
Nov 9th, 2007 at 8:01 pm
you hit the nail right on the head. I have been in mortgages for 25 years and my biggest pet peave is loan officers that do not disclose the true loan the people are getting. It is a crime and someone needs to stop them. You know as well as I do that the borrower is not advised to read every word of the documents and rushed thru them. They have no idea what they are getting into. I asked a client just today while doing a refi for him do you have a pre-pay and he stated not sure. After checking he does and now we have to wait until Jan 2008 to close. I am looking forward to the weed out of crap out of our industry. I have seen this happen before and looking forward to the bad wood weeding out of our industry.
Nov 9th, 2007 at 8:04 pm
I have a borrower who attempted to write an offer on one of their foreclosures at Countrywide. They require that you obtain a pre-approval from a Countrywide Branch. When he called a local branch the Manager got involved because he was honest with them that he was not going to use them. The Manager went balistic and demanded an application fee in order to give him an approval. He told them where to stick it and said forget it!
Nov 9th, 2007 at 8:09 pm
Amen Ray! In the 22 + years I have had my mortgage broker license I can mirror what your comments are… unfortunately! Talking to a number of Mortgage Brokers I know they STILL say how great those Option Arms are! And what happens??? the borrowers and the Realtors don’t care. They just want the most loan and the lowest payments. I’ve got to hand it to car dealers.. they have conditioned consumers to only look at the monthly payment, not the total rate or cost!
Nov 9th, 2007 at 8:09 pm
Amen! Go Bobbi!!! I am with you!
Nov 9th, 2007 at 8:11 pm
You do not deserve to be in this industry. It is people like you who have ruined our profession
Nov 9th, 2007 at 8:22 pm
It seems like this mentality mirrors the drug business and I’m sure that where you might go to make your beemer payments.
But, hey, let’s do it your way and just let the house of cards fall as they will and ARE RIGHT NOW and watch our economy go in the toilet.
Nov 9th, 2007 at 8:23 pm
You go Moe!
Nov 9th, 2007 at 8:25 pm
I am so glad I came to this site! I feel a lot better knowing there are some true Professionals out there! We all need to stick together and keep putting these low lives in their place. They will be flushed out soon and with the new legislation most of them are obviously not literate enough to pass a test.
Nov 9th, 2007 at 8:27 pm
Just like Santa he ruined Christmas!!! Give me what I want not what I need… I need help today and Fu$k tomorrow results.. Got it…
Nov 9th, 2007 at 8:28 pm
PLEASE, PLEASE tell me the stories. I love mortgage story telling time. Email me, call me. As you can tell, I love hearing insider stories.
I’ll buy the hot cocoa and pull up an easy chair with my laptop and we then can share these stories with everyone and see what we can all agree to disagree on.
Nov 9th, 2007 at 8:42 pm
I’m thinking of writing a script for a new TV series called “Mortgage House.” The series would be similar is style to Boston Legal/Desperate House Wives. What do you think? Who should play the characters!
Nov 9th, 2007 at 9:18 pm
My wife and Myself are lo’s and over the past 5yrs we never riped anyone off. we did 2 opt arms cause they were what the client needed not because he wanted it. competing with countrywide and the NO POINTS NO FEES NO APPRAISAL NO ESCROW…………WHAT A LIE!! They are still running this add. What a bate and switch. If you need an honest loan officer we do exist and don’t lie. The bottom line is,the goverment wanting to give control of the loan market to big banks is like letting the fox guard the hen house.
Nov 9th, 2007 at 9:24 pm
Good for you d garrell! It is nice to hear from ethical professionals rather than the scum that has put us all in this position we are currently in. Pat yourself on your backs!
Nov 9th, 2007 at 9:28 pm
too funny. The “No Closing Costs” Countrywide commercial. How many times have you talked to a borrower and they decided not to use you because they were going to CW’s No Closing Costs…you tell the borrower, it’s not a fixed loan..that’s a HELOC? You see the borrower a month later and ask if they closed…yeah I did, but you were right it was a HELOC. I can’t believe they still run that ad…..There is no way (in my state) you can make enough YSP to pay all the costs associated with a loan. Countrywide..the biggest crooks in the business!
Nov 9th, 2007 at 9:44 pm
When I was a Manager with CW the telemarketing dept sent us these loans to process. Almost always there was a 2nd mortgage or HELOC with it. When we would get to close on this the people were like I didn’t want this why are you making me do this? We told them to just not sign the docs as we only processed what the corp office sent us.
Nov 9th, 2007 at 10:55 pm
Interesting that everyone that Hates CW was a past employee?? The reason you left was because you where sold on how much you can make out side of CW youve made your money and now you are looking to come back to CW!! “Pasture not always Green” huh wonder if I can get hired?
Nov 10th, 2007 at 4:46 am
Chedder,
Please. CW brain washes its sales staff into fearing leaving and now it bit them in the A$$. I am very successful since leaving CW. Now my freinds who stayed are singing the blues. Chedder the retail branch I worked for just closed this week. I’m a freakin legend at that place!
I’ve been in the business over 4 years and just renewed my CA DRE license. The credit crisis intensified my business because I’m honest making sure my clients know every single disclosure document before signing, know the ends-and-outs of the program in question, and quality service my team provides.
Chedder, don’t get me wrong I received the best knowledge at CW from my friend who “was” the operation manager but has parished from the closure of branch 105 in Woodland Hills.
Last, I’m currently refinance a systems analyst at CW right now $510,000! Funny…Don’t ya think.
Holla,
Nov 10th, 2007 at 7:01 pm
Well said Jim. I’ve been living in north orange county CA for about 54 years. I’ve personally experienced trouble in the housing market several times. The interesting part of it all is that the same mistakes made back then are happening today. Builders over build and consumers over pay; it’s really that simple. It amazes me how fascinated Americans are with the mortgage industry. It really has become the crack of the 2000’s, give me more, give me more. It’s amazing. The point I loved about your story Jim is accountability. I know I’m not the smartest man in the world nor to I pretend to be. When I purchase something or finance something, it’s contingent upon if I can afford it or simply need it. Call me old school but I’ve never done business over the phone especially when it comes to my mortgage. Yes, I agree Jim, we are in the information age and sometimes I feel I need to change to catch up with the times but the times are creating bigger problems for some people. I don’t despise anyone in the mortgage industry. I feel that something needs to change in the mortgage industry or we are doomed to repeat ourselves. My suggestion is this. We need professionals that know what they are doing. Not a fake that pretends he or she knows what they’re doing because they have 2-20 years EXPERIENCE. I mean a flat out professional that can handle questions and advise accordingly and that has upper education outside of high school and a junior college. As I read all the comments posted earlier, it sounds like a bunch of disgruntled loan junkies with EXPERIENCE and too much time on their hands that simply don’t have the knowledge to be a professional. I’m sure their are a few that have blogged on this page that could constitute as a professional, so I apologize if I offended the professionals. So to all that like passing the buck on accountability, quit finger pointing and become part of the solution. Quit buying homes you simply can’t afford because you neglected to see the big picture. Quit blaming everyone else for your own problems that you created. Don’t be that person who moves into an established neighborhood and finances 100% of the homes value and pretends to be someone you’re not. Don’t be that person or you will end up being a statistic that I read about every Sunday afternoon in the LA TIMES talking about how you were victimized by good old Countrywide and the disclosures they sent me were to long to read so I believed what the agent told me. Again, being a professional would weed this problem out so what the professional is saying matches the documents he or she signs if you choose to do business over the phone.
Nov 10th, 2007 at 8:00 pm
Thanks Moe
Nov 10th, 2007 at 11:18 pm
Believe it or not but these people rely on licensed professionals that have a fiduciary duty of utmost care and integrity in dealings with their clients. This goes for Countrywide and every lender, broker or loan officer.
The fact are that this rarely happened and that many of these so called professionals were more interested in their own pocket book, then what was in their clients best interest.
Yes, some people had no choice beause they had bad credit and they HAD to take these loans.
But if these terrible loans did not exist, then there would be no discussion here and we would be talking about how much money everyone is making.
You do not blame the end consumer for what is ESSENTIALLY THE MOST DEFECTIVE CREDIT INSTRUMENT THAT WAS EVER DESIGNED.
You blame the people that created the instrument that is causing the the problems.
It’s like blaming your child for choking and dying on a lead based paint toy from China.
Where is the sense in that?
No, you do a massive recall of what was a defective product (loans) and you put the damn company (lender) that sold these toys out of business.
You don’t blame the people who are dying from the product!
DON’T SELL THE LOAN!
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