Mortgage brokers please explain - Posted by PBoone

Posted by Michael Steele on July 31, 2007 at 09:18:12:

Ed

Very well put.

Mortgage brokers please explain - Posted by PBoone

Posted by PBoone on July 29, 2007 at 07:30:49:

Hi All,
I am hoping you can explain how people are getting mortgages on 800K homes w/ 80K incomes? or something similar.
Please, I am not asking if it is a good idea, I just am baffled to see some of the possibilities here in Ca.
Patrick

Re: Mortgage brokers please explain - Posted by Anon

Posted by Anon on November 05, 2007 at 18:17:36:

Getting motgages isn’t too much of a problem. There are lots of brokers out there who will do anything to find and close a deal. I used to broker morgages and I can tell you that I don’t personally know any broker that is afraid of breaking the law. If the employer gets in hot water over fraud, they just fire the loan officer responsible (who then goes down the street and resumes business at another brokerage). The guys I know would remove liens from titles, manufacture w2 (income) statements, manipulate appraisals, etc. No holds barred. The lenders didn’t give a darn as long as the loan package looked good so they could resell it. In case you are wondering, we did lots of deals for for the big lender that fell apart a couple weeks ago. This is one crazy businees. For 10 grand or so you can have you liscenses and be up and running. There is very little investment required. All that is really needed is a dsl line, a telephone and photocopier and you can be putting thousands a month in your pocket. No BS. (I worked at a small place where 4 guys would bring in 60-80 thousand a month in fees combined). Borrowers are usually dumb as rocks and don’t give a darn what happens as long as they get their hands on the money and consequently, the brokers milk the borrowers for all they’re worth. It is really sad that the industry is as corrupt as it is and no-one is really held accountable for the destruction they create. Can’t wait to here from all you “honest” brokers who I have just po’ed. If you feel doing 2 hours of paperwork in a dumb as rocks profession entitles you to take thousands in equity for the unknowing and unsuspecting, then you aren’t honest. Quit being parasites and get your lazy butts out of the office chair and actually EARN your livlihoods.

Re: Mortgage brokers please explain - Posted by Ed Garcia

Posted by Ed Garcia on July 31, 2007 at 07:19:18:

Patrick,

I think you know the answer to you question, GREED.

The lenders originally designed programs for good borrowers who were self employed and couldnâ??t show their income. They then not only abused their own programs, but taught their co-hearts the brokers, who are also driven by GREED how to abuse them as well. The brokers then took the abuse to the next level involving in my opinion loan fraud which I think has become an epidictic as far as Sub-prime lending is concerned.

Now letâ??s not leave out the borrowers who are also driven by GREED. The money was easy to get and the borrower could not resist taking it even though they didnâ??t have the ability to pay it back. It was borrow it now, and worry about it later.

I think that sometimes in life, we have to step up to the bar and be accountable for our actions and stop passing the buck.

Ed Garcia

Re: Mortgage brokers please explain - Posted by Matthew

Posted by Matthew on July 30, 2007 at 08:52:10:

Think thats bad- I had a guy the other week approach me to refi his 1 mil 2nd home investment with 30k in annual salary. he bought in feb -07 ? ??? Its only in the last 5-6 years I have seen the idiot loans come out,yes the lenders and wall street have a hand in this however the final say is definetly the loan officer.I have been in this over 10 years.I could just go on about how irresponsible the loan officers are today.
The responsibility is now going to fall on the loan officer according to new regs coming out.

Re: Mortgage brokers please explain - Posted by Patrick S. Lawson

Posted by Patrick S. Lawson on July 30, 2007 at 05:43:54:

Unethical Mortgage Brokers and Lenders.

Re: Mortgage brokers please explain - Posted by Evaluating The Market

Posted by Evaluating The Market on July 29, 2007 at 20:01:52:

That was the past when one could buy a home at:
100% Financing
Stated Income
No Reserves
Low credit.
Now they will need some or all of these:
down payment, higher credit score, documented income , and reserves