HP message to the world: Mortgage Brokers are Evil

September 15, 2006

HP message to the world: Mortgage Brokers are Evil

There. Hope that helps.

30 comments:

Anonymous said...: Evil or just Oversexed?

Realtor, Mortgage Broker Run Train On Client

Sorry, had to do it. It just fit so well with Keith's post.; September 15, 2006 1:06 AM
Anonymous said...: It should say "You are Screwed!" Rhymes with "approved."

These scumbags don't care if you keep the place or not. They are interested in seeing the party last forever and lowering lending standards is one way to do that. I know a case where, on the same house, a loan was approved for $572K on $125K income, and then 30 months later, a loan for $725K on $100K income was approved. Both loans were 30 year fixed and both at 5.75% interest. $150K higher balance on $25K less income!; September 15, 2006 1:19 AM
Anonymous said...: Alot of people are evil. Try attorneys, for example.; September 15, 2006 1:37 AM
Anonymous said...: My friend bought 198,000 condo on 2400 $ gross monthly income.
No money down,8.5 % financing JPM/Chase = Mortgage 1495$ month,267$ HOA + 120 + 85 $ taxes.

Total 1960 $ for a 2bd condo !!!
Who in the world approve such transaction?

The broker who sold her the unit ,bought it 2months ago for 152,000 $.; September 15, 2006 1:46 AM
Anonymous said...: I'm afraid your friend is holding the "hot potato". I feel sorry for her!; September 15, 2006 2:01 AM
Anonymous said...: KEITH, DONT YOU GET IT! YOU MISSED THE FREAKING BOOM TRAIN! LET'S SAY A TRAIN IS GOING FROM LA TO NY. YOU MISSED THE TRAIN & YOU ARE STUCKED IN LA. NOW, YOU ARE JUMPING FOR JOY BECAUSE THE TRAIN BROKE DOWN IN PITTSBURG. REMEMBER THIS, YOU ARE STILL IN LA LA LAND!

THANK YOU!; September 15, 2006 2:45 AM
Anonymous said...: If you look close, they've had their thumbs up each others Ass,just to get something warm to eat!; September 15, 2006 3:16 AM
Anonymous said...: Mortgage Police

http://www.youtube.com/watch?v=dx3YwIacYcw&mode=related&search; September 15, 2006 3:29 AM
Anonymous said...: Speaking of mortgage brokers and predatory lending, read the following. There are a lot of mortgage brokers who need to end up ROTTING IN JAIL:

http://www.motherjones.com/news/feature/2006/09/prime_suspect.html; September 15, 2006 3:47 AM
Anonymous said...: Oops--Sorry. I cut off the full URL:

http://www.motherjones.com/
news/feature/2006/09/
prime_suspect.html; September 15, 2006 3:48 AM
Anonymous said...: I work for a major company and one of my co-workers has decided to be a shill for one of these corrupt mortgage brokers and has posted his flyers in every building, and every kitchen, break room, copy room, etc. (We are a closed campus with smart card ID badges to get in). Well the jist of the story is he advertises that if you use him, he will cut you a 2% "rebate" check *after* closing. So where is he ripping of the bank? Charging bogus points on the closing form? (rolled into the loan), inflating the sale price? What's his game?; September 15, 2006 4:16 AM
Anonymous said...: What's evil, or just plain stupid, is condemning an entire industry with total disregard to the honest people within it.; September 15, 2006 4:30 AM
Anonymous said...: Someone please call the Mortgage Police.

http://www.youtube.com/watch?v=
dx3YwIacYcw&mode=related&search

They have an Option loan for you.

Out of the fire and into the firing pan.

But the video is funny.; September 15, 2006 6:38 AM
Anonymous said...: http://www.mortgagefraudblog.com/

nice links of Mortgage Brokers Frauds article.; September 15, 2006 6:41 AM
Anonymous said...: It is funny how banking industry works in the U.S., I did not qualify for a business loan ($150k), but I was pre-approved for $600k mortgage. LOL.; September 15, 2006 2:10 PM
Anonymous said...: I get the impression that Keith intentionally got off the train because he knew at some point it would derail. A bunch of those poor people stuck in Pittsburgh have enough money to get their asses to NY because they didn't take risky loans from predatory lenders. The rest are going to be stuck. People that stretched themselves a little too far to jump on the train are one job loss or medical emergency from foreclosure. If they need money, they won't be able to sell their homes which are now worth less than when they bought them. Bankrupcy laws are now designed so that people will actually have to pay back some of their loans. I don't think anyone is jumping for joy about the world of pain that is coming. Just like to see basic needs like housing become affordable again. Mortgage brokers should be penalized for loaning money to people that clearly have no way to pay it back. Anyway - there's always another damn train!; September 15, 2006 2:18 PM
Anonymous said...: Who takes a train from LA to NY anyway? Afraid to fly anonymous?; September 15, 2006 2:21 PM
Anonymous said...: twib and Anon 2:10:23,

You both have brought up a very interesting issue. Do you think that it is good economics when, looking at the big picture, a business has a potential to grow and thus produce? While a house, although can be foreclosed, but most banks don't really want inventory of houses in its holdings. I guess in Anon's case, no offense but you may not have a good and convincing "business plan." Try it again.

On the other hand, I don't know if this is what Dr. Kurt Richebacher has said in this article at the Daily Reckoning saying;"...America is the most backward country among the industrialized nations."; September 15, 2006 3:48 PM
Anonymous said...: Coming back down to earth

Buyers, sellers and real estate agents adjust to a changing market as home prices begin to stabilize.
Posted by the Asbury Park Press on 09/15/06
BY DAVID P. WILLIS
BUSINESS WRITER

Lacey residents Scott and Renee Hanula have a lot going on.

They are building a house, which is supposed to be ready in December. They have three children and are in the process of adopting a fourth. At the same time, they are trying to sell their home in a real estate market that is softening. Originally priced at $404,900, they have reduced the price of their four-bedroom Colonial-style house on Fox Hollow Drive to $399,000.

"The market being a buyer's delight right now, we wanted to price the house to sell," said Renee Hanula.

Between 2000 and 2005, home prices at the Jersey Shore skyrocketed. Owners became accustomed to seeing their homes appreciate by double-digit rates every year. The median sales price of a single-family house in the area that includes Monmouth and Ocean counties nearly doubled between 2000 and 2005, rising 99.5 percent, according to the National Association of Realtors.

For much of that time, homes were in high demand, as buyers took advantage of lower mortgage rates. Sellers reaped the benefits as bidding wars ensued, pushing prices even higher.

But that ended in 2005. Now the numbers tell a different story:

The rampant run-up in prices has stalled. The median sales price for an existing home in the region that encompasses Monmouth, Ocean, Somerset and Middlesex counties was $393,600 in the second quarter, down 0.1 percent from $394,100 in the second quarter of 2005, according to the Realtors association.

It's the first time that the association has seen a percentage decrease since prices in the region fell from $148,600 to $148,500 from 1993 to 1994. They have climbed every year since.

Sales in Monmouth and Ocean counties are down.

In Monmouth County, sales fell 25 percent in July from the same month last year, and are down 17 percent in the first seven months of the year over the same period in 2005, according to the Otteau Valuation Group in East Brunswick.

In Ocean County, sales fell 28 percent in July from July 2005 and were down 19 percent from January through July compared with the same period a year ago.

"That this slowdown comes in the midst of the prime March-to-August selling season, when home sales should still be running hot, provides compelling evidence of a market transition wherein home buyers have greater control over the selling price than at any time since 1991 — a 15-year span," according to a report by Otteau.

Inventories are up. In Monmouth and Ocean counties, there was a 10-month supply of homes between January and July, up from five months for the same period last year, according to the firm's monthly study.

"What we are into here is likely to be a two- to three-year cycle of a stagnant real estate market because it will take that long to sell out the unsold inventory that we have accumulated to this point," said Jeffrey G. Otteau, the company's president.

Experts say they are not surprised that real estate activity is slowing down.

The market could not stay "red hot," said Joel Naroff, chief economist at Commerce Bank. "You are coming off of levels that we have never really seen, and now we are slowly moving down to more stable levels."

It's become a question of affordability, Naroff said. Income levels have not kept up with the rise in prices.

"Essentially, to buy a house, you had better have a house to sell or you can't get into the market," Naroff said. "As long as you can sell your house in one place you can come and buy a house in another area."

Who's affected the most in this market? The first-time home buyer.

"They tend to be people who are starting out in life, and they are the most sensitive to these affordability crunches," Otteau said.

And what happens to them affects everyone else in the housing market, he said. The first-time home buyer allows the seller to upgrade to a second home, which allows that homeowner to buy another house. Eventually, the person at the top of the chain is the purchaser of a retirement home.

"Each first-time buyer purchase triggers five other home sales in the market simultaneously," Otteau said. "All of this happens in a 24-hour period."

Ocean Township resident Joe Corpina put his Bowne Road home on the market in August with a $599,900 price tag. He and his wife, who has started an interior design business, want to move to a smaller home.

He calls his house a "rare find." In the seven years they have owned it, the Corpinas have spent about $100,000 on upgrades, including new windows and a gourmet kitchen with granite countertops.

"Our house is definitely attractive. It just appears that the market is working against us," Corpina said. "If it wasn't for the mindset of the market, I think our house would have sold in five minutes."

The market has changed, real estate agents say.

"It was like a fire running out of control," said Ron Raimondo, broker-owner at Key Agency in Hazlet, describing the residential real estate market. "There is going to be a period where there is a quiet, ebb tide. We are in a strong adjustment period."

"The buyers are realizing that it's not a fire sale on every corner," said Lou Redbord, manager of Coldwell Banker Residential Brokerage in Holmdel. "The sellers are now starting to understand their house isn't going to appreciate into the double digits or even the high single digits like it has done."

Buyers have more choices and are asking to see more properties.

"We can take the buyer out for the same category and spend a few weekends with them and several showing trips with them," Redbord said. "Two years ago, give me a few hours on a Saturday, and we can take care of everything that is in your parameters."

While the entire region is seeing the same overall trends, there are differences when you break the market down.

NORTHERN MONMOUTH

The Bayshore region includes some towns, such as Union Beach, Keansburg and Highlands, where homeowners can still find reasonably priced homes, real estate agents say.

"You can primarily purchase a house between $250,000 and $400,000 and get a really comfortable, nice house in mint condition," said the Key Agency's Raimondo.

The less-expensive homes are smaller and are on smaller lots, he said.

Homes in towns such as Rumson and Fair Haven represent the other end of the spectrum. Of the 206 homes for sale in those two towns, 93 are priced over $1 million, said Deborah Madey, a broker with Peninsula Realty Group Inc. in Shrewsbury.

That doesn't mean they are going to sell for that much. For homes priced at $2 million to $3 million, it's not unusual for a buyer to offer 10 percent off the asking price, Madey said.

"Buyers are always more comfortble offering below ask on a higher price point," she said.

WESTERN MONMOUTH

In areas of western Monmouth County, where most of the new housing in the region is located, builders are offering incentives to help sell new homes, said Charlotte Ruden, a broker/sales associate at Re/Max Central in Manalapan.

"They are throwing in extras to become more competitive," Ruden said.

Meanwhile, she said people from New York are continuing to buy in the area because of local schools and the one-hour commute time to New York City. "We still have a very strong market in western Monmouth in spite of the fact that it is not as hot as it was," Ruden said.

COASTAL MONMOUTH

In the coastal area, there is still value in the county's waterfront properties, said Stan Kozlowski, general manager at The Mary Holder Agency, which has nine offices in Monmouth and Ocean counties.

"You can do another development in Manalapan, Marlboro and Freehold Township and develop a cornfield," Kozlowski said. "But you aren't going to develop any more waterfront property."

Those properties will hold their position in the market, he said.

But as in other areas, there are more homes for sale, he said.

"My agents are showing more and more houses to the same buyer," Kozlowski said. "There is less urgency to have to commit because of the scare of multiple offers tomorrow. They say "Honey, we have the time. Let's look at another six houses.' "

NORTHERN OCEAN

In northern Ocean County, Williamson said there are three times the amount of listings coming in than sales in towns such as Dover Township and Brick. "That is just creating a backlog of listings," he said.

As in other areas, homes are staying on the market longer as well. For instance, in Dover homes are staying on the market almost 90 days, up from 70 days last year, Williamson said.

While prices are not going to continue to escalate as they have in the past, sellers still are reaping gains, Williamson said.

"They (houses) still proved to be a heck of an investment," he said.

SOUTHERN OCEAN

In southern Ocean County, homes are traditionally less expensive than other parts of the Jersey Shore.

"People have historically gone further south because it is a bit less expensive, and they think they can get more house for their dollar," said William Donnelly, broker and owner of Re/Max at Barnegat Bay, which has three offices in Ocean County.

As in other parts of Monmouth and Ocean counties, homes are taking longer to sell, Donnelly said.

And buyers are winning concessions from sellers, who are agreeing to make home repairs and pay buyers' closing costs, he said.

Jim Joeriman, manager of Prudential Zack Shore Properties in Lacey, said he believes buyers' decisions are being affected by the high price of gasoline. Many residents work outside of Ocean County, he said.

"As the price of gas goes up, that goes right to their monthly wallet," he said. "We have heard some people say, "I want to live down here, but I can't afford the price of gas right now.' "; September 15, 2006 3:54 PM
Anonymous said...: in addition to real world lending standards and guidelines (financed amount not more than 3x salary, 20% down payment in hard money or carry PMI, mortgage P/I payment not to exceed 28% of net pay, good credit and low debts required, job stability required) five words would stop this crap dead in it's tracks

"broker reserve account and recourse"

put that in each State's mortgage broker license requirements, enforce it to separate the men from the boys and I guarantee the sound of crickets as these nimrods go to work cutting grass, washing dishes or selling used cars.; September 15, 2006 5:41 PM
Anonymous said...: ++++And why are so many Americans taken advantage of by the "Evil Mortgage Brokers"? Because they don't have basic economic survival skills. Here's an interesting executive summary of a survey that tested the economic/business knowledge of American teens and adults:

http://www.ncee.net/cel/
WhatAmericansKnowAboutEconomics_
051105-ExecSummary.pdf; September 15, 2006 6:15 PM
Anonymous said...: All the folks who I see buying now have IQ bellow 90...; September 15, 2006 6:24 PM
Anonymous said...: "broker reserve account and recourse"

What does that mean, exactly?

Something like:

"if your client defaults in the first 2 years, you, the mortgage broker, are on the hook."

???

I wuv it.; September 15, 2006 6:52 PM
Bill said...: Is it me or do all women who sell real estate dye their hair blond??

My Neighbor just put his house on the market, and the realtor showed up..fake blond bomb shell of a women, driving a no doubt leased bmw.

She climbed out of the car like she was Paris hilton, walking up the driveway I felt we should have laid out a red carpet or something..sheesh.

Then she is telling my neighbor everything he needs to fix to sel the house..quite the punch list for (gulp) $255,000) I know what he paid for that shack.

And let me say if he gets $255,000 I am putting my house on the market the day his sells, no bullshit.; September 15, 2006 6:55 PM
Anonymous said...: Keith is right! WW3 is coming soon! The housing bubble burst you all are awiting for is finally here. After the US population is reduced by half, you can buy properties real cheap, only if you are still alive. Here is a peep of the prices after WW3:

SF $90,000
LA $60,000
PHX $30,000
NY $75,000
KS $15,000; September 15, 2006 7:02 PM
Anonymous said...: "I want to love here but I can't affgord the price of gas right now".

Americans are stupid beyond belief. They think a perpetual mortgage on 600K sh@tbox is do-able but a 25 cent /gallon increase is gas will push them over the edge when considering that 600K house.

Unbelievable.; September 16, 2006 4:22 AM
Anonymous said...: Friends of mine were just approved on a loan that will take more than 50% of their monthly income.

And they are about to have their first baby.

They're afraid they'll be priced out forever.

Get rid of the MBS and make banks resposible for the loans they make.; September 16, 2006 4:25 AM
Anonymous said...: "GDP does not need to be saved by flooding the market with money to a basic need sector."

AMEN; September 16, 2006 4:28 AM
Anonymous said...: Fellow Bloggers and Friends

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Anonymous said...: This comment has been removed by a blog administrator.; March 16, 2013 10:40 AM

HousingPANIC - The Housing Bubble Blog with an Attitude Problem, 2005 - 2008

September 15, 2006

HP message to the world: Mortgage Brokers are Evil

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